Stay or move -WWYD?

[Roo84]

Currently live in a 4 bed detached in a desirable street. Husband works full time, I work part time. Two children ages 4 and 2, we don't plan to have any more children. We live a nice enough life, enjoy holidays etc but not lavish and don't have lots of luxury's.
We are fortune to have around £160k equity in our home and currently easily able to afford the repayments.
Dilemma is, do we stay where we are and do additional borrowing on mortgage to finish house to the exact way we want it, or downsize to a 3 bed, possibly semi, and likely to be a Reno project but potentially end up with a overall mortgage borrowing of around £80k less??
The project we have seen would be a full refurb, with an additional small extension. Estimating it would possibly cost £80kish to do.

I would stay put but save up and update thinks gradually over a few years rather than feeling pressure that everything has to be exactly as you want it right now

I hate moving and I hate renovating. So I'd stay put. That extra bedroom will be handy - playroom now, study as the kids grow. Stay put and save the stamp duty + moving costs.

I live in a detached house and can't imagine a semi. It also sounds like a bidpg project - have you done many of those? Especially around work and small children? Sounds like a nightmare to me. I wouldn't do it unless we struggled with money.

To be honest the semi part doesn't bother me too much. The thought of the stress of it all does though.
Husband is keen on the prospect of a much smaller mortgage which would enable us to overpay and be mortgage free much sooner, or just live our lives a bit and enjoy ourselves more.
It's interesting seeing your replies, the few friends and family I've spoken too about it have said move. I can see both sides of it.

I would be looking at school catchment (presumably the 4yr old has just started), also would the 2yr old get a place if you move. What about secondary schools?

All too soon the youngest will be at school, childcare costs will reduce, you might be able to work more hours, pay tends to increase. Why not give it 2 or 3 years and see how you feel financially then. It doesn't sound as if home renovations have to be done right now. Also give it a couple of years and it will be much easier to manage diy.

If I understand correctly your mortgage would be £80k less- but you’d still have to find £80k on renovation on a smaller house?

Makes no sense to me to move to a smaller house unless there is a really compelling reason (eg as PP said, schools are better, and/or the running costs are significantly lower etc). Once you factor in stamp duty, estate agent fees and conveyancing costs it will actually cost you more to downsize.

Surely once you factor in moving costs etc....it becomes less attractive as an option.or does the 80k include all of that?

Also we’re looking at a v small amount of work on next house, it’s easily adding up to 80k and that’s not a refurb. Extension etc.

And where would you live while it was happening.

I could see it making more sense to use your equity to buy a small house to do up and sell on or rent out.

OP, maybe it depends on where the posters are from? I'm in London and 80k doesn't seem like much of a saving. I probably won't entertain the idea of downsizing at this stage in life unless the house was 400-500k cheaper.

Perhaps your area is cheaper so it would be a massive chunk off the mortgage? If you lower your mortgage by 80k, your monthly repayment would go down by £300-£350. Is that a big enough difference for you?

I'd stay put. Your set up sounds perfect and future proof. With little kids and one of you only working part time it makes sense that you aren't awash with luxuries but as you say you have a nice life already so why you'd complicate it and move somewhere less ideal I don't really understand. Sure you'd be mortgage free sooner but you're already okay financially and what's the big rush? For the stage of life you're at you're doing great. Enjoy it!