So much money!! Help me stop panicking

[flumpybear]

I need some MN support please! Having our house extended outwards and upwards - we'll end up with four bedrooms, four bathrooms, open living plan, snug with corner bi fold doors into the garden so very wow factor - whole thing plastered and rendered with loads of things like windows, multiple doors etc ... it's gonna cost about £190k 😱

To be fair - if we sold it we'd Make an extra 250-350k

Tell me we're doing the right thing!!

TIA

You're doing the right thing.

If you can do this without drowning in debt, You are doing the right thing!

4 full bathrooms or does that include a downstairs toilet for example?

As long as there’s a contingency fund, it absolutely makes sense

Thanks!

Three shower rooms and one bathroom

No downstairs loo as we're in a bungalow so it's two downstairs bedrooms with en suites and two upstairs bedrooms with en suites

We bought for a song about 12 years ago and I guess the money we've spent on the house to do the build and buy is £365 so if it's worth £700 (easy around here as it's expensive) we're doing the right thing - it's just scary and we're borrowing to our max albeit we will have money for living, just less expensive holidays etc

When you're looking to see if the refurb works as an investment, you need to use the current property value (not 12 years ago).

What jojo said... likely that based on the value as it is right now you would be losing money... unless it is worth less tha 500k now? But if you bought it 12 years ago for 350 it would almost certainly be worth more than that in 99% of the country

We bought for 175k and currently worth about 400-475 ish (had some estate agents value it recently) should be worth around 650-700 ish after it's completed, possibly more as we're very central in the best small town in the area - very well known and whenever Kirsty and Phil show people around our town they always go in about how expensive and sought after properties are here, and always have been so it's got good history

affordability allowing, we'd like to live in it for at least another 10 years anyway as we'd like to stay if possible - I guess I'm panicking a bit about the mortgage going up so much, but we need more space as our family is growing and we either need to invest in this house, or move - and it's needing investment too as any buyer would haggle down as it needs a new roof and getting a bit tired, kerb appeal is rubbish too at the moment, but the build will sort all these issues, plus give us a unique house too, in a nice road, which has expensive houses too (ours wouldn't be the most expensive house on the street even after the build)

It sounds as if you're in a really good area which you like so I think it makes sense to stay put, invest more in your home and then enjoy how lovely it is for several years after the build is completed.
Very sensible, IMO.
And as you can just about afford the extra payments now your salary or salaries will probably rise - so although things may be tight to start with, it will get better.

Yes @Tartyflette - keep thinking if we pay mortgage it's kind of like 'saving' into a home - I'm not great with savings unless they're locked away from me as I always dig away at them lol 😆

I'm all for improvements in general but unless you're somewhere where builders are very cheap that sounds like a hugely optimistic £190k.

Especially if you're going up on top of your existing bungalow rather than a straight out two story extension.

It looks like it makes sense on paper, but most builds go well over budget so make sure you’ve counted 20% contingency in that budget. Our home renovation went 30% over budget, and I had already completed a number of renovations before so wasn’t green.

I missed the bungalow bit. Are your foundations up to scratch?

Is that cheap?! I thought it was a lot 😳

How much is the square footage increasing by?

It sounds very cheap based on what you’ve said so far.

On a practical level, where will your guests go to the loo? In one of the ensuites?

I can see why you’re panicking given you’re increasing your mortgage to fund the works. Lots upheaval too.

With the cost it’s difficult to compare without knowing the sq or any other details.

Out of interest, why so many en-suites?

The guest en suite will be the downstairs loo - jack and Jill style doors

It just fits better that way - we could lose the en suite door for the guest bedroom and just have it as the main corridor bathroom which is next to the spare room

We have space in the rooms above to have two bedrooms and an entire suite each - I have a boy and a girl so thought that would be nice for them not to have to share Plus resale figures it would be better financially speaking?
Quick calculations currently we have 106 m2 living space and it will increase to 131 m2 downstairs and 63m2 in the roof, albeit this will be sloping roof with a dormer (if that's helpful?!)
These are guesstimates from what I recall of the drawings ...

Will the "one plan living" mean you only have one big reception room? Because I'm living like that ATM and it's awful. So noisy, and crap when your kids get a bit older (say, 9+) and want noisy friends round.

I dream of a load of separate rooms: kitchen, sitting room, den/games room, office... all with six-foot steel doors in-between 😆

That's a massive difference! That's 88m2 extra + lots of other work. 190k sound like a good price provided you manage to stay close to the budget.

I hope you don't have neighbours.

Lol @HasThisSoddingNameGoneToo
No, we've got a snug which is away from the open plan area - it has a bifold door on a corner of the room opening up the whole corner so it looks like it's floating (if you see what I mean) - plan is to have that room floor tiles which extend out to the garden so it looks like a bigger room - though it's a reasonable size as it's currently our bedroom and it's really roomy (around 5m X 4.5 m ish)

@FaFoutis - we're detached and nothing immediately next door as we're back away from the road, our garden to the side, and beyond that is the neighbour's garden - they seem ok with it all as have had our driveway done which was literally outside their house and they told me how nice the builders were

Thanks @JoJoSM2 - really nice to hear it's not in the 'you've been ripped off' bracket!