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Is now the right time to start an extension?

16 replies

twiglet123 · 11/05/2020 17:06

We’ve just submitted a planning application for a single storey rear extension. Thinking of getting some builders in for quotes this week. I guess I’m wondering - is now really a good time to start this?
I think I’m worried the project will be significantly slowed down or even that builders/suppliers are likely to go under half-way through and leave us with an unfinished project. Really unsure how to proceed. Husband is keen to just get on with it. Help!

Am I right to be worried or should we just carry on?

OP posts:
Loofah01 · 11/05/2020 17:17

Why would a builder go under half way through? You're paying them!
Maybe you're over thinking this - go and get some quotes, ideally from recommendations, and ask how they work their finances. Any that demand a portion upfront can be discounted. Generally they should have a payment plan and you pay a portion every 'x' weeks for example then you withold the final payment while snagging is complete.
You don;t need to worry about suppliers as there's loads of alternatives even if one does go bust.
You'll need lots of time to go through your plans with them and they can sometimes give some really good ideas not considered before.
I'd just get on with it.

twiglet123 · 11/05/2020 19:29

You’re right - I definitely have a tendency to overthink! Thanks for the payment plan tip I’ll definitely make sure that’s in place! I guess now is as good a time as any.......I just need to get my head in the right place

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TiddleTaddleTat · 11/05/2020 20:46

Well I'd go the other way actually and say that your concerns are quite sensible.
I'd be thinking about whether the extension was really needed right now? Could it wait 1-2 years? Will you be taking on debt to fund it - if so I would think carefully about it in the circumstances.

twiglet123 · 11/05/2020 21:24

Hmmmm yes we would need to borrow extra on the mortgage to fund it. It could certainly wait (we’ve lived here 6 years!) but we were on the verge of putting the house on the market and then lockdown happened. We now have cold feet about moving, hence the extension. I’m in 2 minds, husband is very keen. To me it feels risky, but I’m very risk averse!

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Africa2go · 11/05/2020 22:24

Having lived through an extension, my concern would be how a builder / trades would do the interior work. Are you happy allowing those people into your house? Also if there was a second spike and lockdown came again, would you manage (with a half finished project / no kitchen?).

Loofah01 · 12/05/2020 09:11

OK, so new info there! I wouldn't extend a mortgage to fund the work. Although it will certainly add value to the house, extending a mortgage is about the most costly way of borrowing money.
I would expect that lockdown will have been lifted more than sufficiently before planning is granted so no worry there and I'm pretty sure there will be adequate time to prepare should there be a 2nd spike lockdown; exterior build would be complete, more or less, prior to busting through current exterior walls and into the house so it would be a small window to be aware of.
My biggest concern with your proposal is the mortgage extension. Take advice from your lender.

chunkyriverfish · 12/05/2020 10:26

If you do go ahead in the future you can agree to do what my builder did. I never paid him upfront for anything. He would put in the order in to the builder's merchant, pass the phone to me and I would pay for the materials myself.

At the end of the week the builder would invoice me for the 5 days he had done so 5 X his day rate then bill me for his labourers, one was skilled one was unskilled so slightly different amounts. I would then transfer the money straight into his bank account whilst he was still in my house, he could see the transfer and he would give me a receipt.

I paid all of the subcontactors directly, so plasterer, electrician, window company etc but the original quote for all the work included these costs so I knew in total how much it would cost me in total.

It came in pretty much on budget, building regs chap asked for something and we went halves on the cost so an additonal £300 for me and he was on time, turned up exactly when he said he would and he was incredibly tidy too. And sadly I cannot recommend him as he is no longer a builder after 20+ years of doing it he wanted to do something else.

I did view his work mid-progress at another property so I could see how tidy he was and talked to the customer. They did all the work outside but then had to knock through.

We did a kitchen extension so bear in mind that the build was to first fix, ie bare walls and wires sticking out the wall waiting for sockets and pipes sticking out waiting to be connected. Then we had to pay for the kitchen too. Even if it isn't the kitchen you are exending think about sockets, flooring, window and door locations.

chunkyriverfish · 12/05/2020 10:28

Should have said, we did not remortgage but saved up, I believe when totalled up including landscaping the garden it came to just shy of £30k and we saved for it. Frugal doesn't even come close to describing how we did it Grin

twiglet123 · 12/05/2020 12:08

Thank you chunkyriverfish - that is some serious frugality!!!!!!! Interesting to see how you paid the builder in small chunks too.

Loofah you have me worried now - I thought borrowing extra on the mortgage was a good way to fund an extension! We have nowhere near enough in savings to fund it, but we have paid off approx 50% of our mortgage - so the house is worth about £530000, we have £280000 remaining on the mortgage and would need to borrow an extra £60000 to fund the extension. I can’t see another way of funding it?

OP posts:
Loofah01 · 12/05/2020 12:44

It's OK for some people, those that overpay for example, but by adding to the mortgage you're paying over the duration and adding interest on it every day. Do the calculations on it to see how much you'll end up paying on the amount you want to extend by. It may turn out that it doesn't bother you, or that the benefit of the extension outweighs the extra repayments in terms of life enjoyment.

I didn't mean to worry you but mortgages are hidden from everyday finances and prone to catch people out...

TiddleTaddleTat · 12/05/2020 14:04

When would you be remortgaging?

Can you wait until then to release some of the equity?

BabyMoonPie · 12/05/2020 14:18

How long is the project likely to take and what will the impact on neighbours be? A few doors down from us just moved in and seem to be completely gutting the house and garden and the noise and vehicles aren't great - they keep blocking the road (I feel really sorry for the neighbours)

TiddleTaddleTat · 12/05/2020 15:19

Yes, consideration of neighbours is really important too. If they are home all the time with noise next door it could affect the relationship between you. I've found any amount of neighbour DIY noise so much more irritating than usual as we can't get away, and have been minimising the amount that we do as a result. But I'm an over thinker !!

twiglet123 · 12/05/2020 15:37

Ah that’s an interesting point about the neighbours - both sides are retired so ‘when’ we do any work won’t really make any difference to them. But I would still check with them just to make sure.

TiddleTaddle we are on a 2 year fixed rate which ends Oct 2021 - I’ve never asked to borrow extra money on a mortgage but I assume the extra borrowing would come under a new rate?

Initially my main worry was how future lockdowns could affect this project, particular the length of the project and availability of supplies, but you are all (rightly) making me rethink the financial aspect!

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MarieG10 · 12/05/2020 16:01

Great time to build one. Builders are starting to look for work as a number if people are pulling plans for spending due to CV and job uncertainty. Really good builders are now having some availability so are not charging top prices any more. Go for it

TiddleTaddleTat · 12/05/2020 18:18

I looked into borrowing more (a second charge mortgage, I think it's called) because our fix ends in 2024... sigh.... it ended up about double the rate of interest so decided it wasn't worth it for us.
It's certainly true that a lot of builders are having more availability. We are finding similar with kitchen fitters for our modest remodel that we are planning

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