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Loft conversion or pay off mortgage?

64 replies

Scout2016 · 01/06/2020 08:45

This is very dull, sorry, but wondering if you could share your wisdom and experience. Our mortgage term ends later this year. We could pay it all off and still have a decent cushion financially.
We are a couple in a 3 bed house with our DD. She is 4 and is in the box room. Spare room is used for working in and guests, as well as laundry drying and storage. We probably have people stay every couple of months at least. When my parents and sister stay at same time sister is in the living room on the sofa. My family and most of my friends live a distance away so too far to see in a day and obviously I miss and want to see them without always going to them. They often bring their OH and / or kids too. I'm guessing DD might want sleepovers when older.
We are thinking DD will definitely need a bigger room soon. But I don't want to have no spare room. Box room isn't really usuable for guests but could be a work space. We looked at getting the loft converted but it's a huge expense for rooms that would only be used as bedrooms a few times a year. And being mortgage free really appeals. We can't do loft and a chunk of mortgage. We aren't high earners so won't have this much again for ages, if ever. We could get 2 rooms up there but would loose the box room for anything much more than storage, maybe a desk. So we'd go from 3 bedrooms to 4 decent sized ones.
So, for anyone not bored to tears already, what would you do? Thank you.

OP posts:
HappyDinosaur · 01/06/2020 08:50

I would definitely pay the mortgage off and then see about doing the conversion at a later date.

Techway · 01/06/2020 08:51

I think it depends.. do you plan yo stay in the area, are your jobs reasonable secure, how old are you both?

I would extend because additional space for family is important to me. I imagine you would also benefit from additional bathroom.

However building work is challenging and disruptive so you it's best that you are commited and want it to happen.

TimeWastingButFun · 01/06/2020 08:58

Personally I would never be in debt for a spare room - if it were me I would pay off the mortgage then save for the loft conversion.

bronzedgodesswannabe · 01/06/2020 09:00

Pay off the mortgage deffo!!!

BernadetteRostankowskiWolowitz · 01/06/2020 09:01

Pay off the mortgage. Give dd the bigger room. Move the desk to the box room. Tell potential guests to book into a local B&B.

Mynameisrow · 01/06/2020 09:03

Pay off the mortgage then start saving what you would have spent on the mortgage for your loft conversion.

At 4 your DD won’t start having sleepovers for a while and is probably happy to spend time with you rather than in her room. As she gets older she will want more personal space. For now I’d be mortgage free, you’ll save a fortune on interest.

caffeinebuzz · 01/06/2020 09:03

What will make the biggest difference to your lives, extra cash each month from not having a mortgage payment or the extra space to enjoy?

Settlersofcatan · 01/06/2020 09:07

How much would it cost to pay for your guests to stay in a local Airbnb or hotel every time Vs the cost of the loft conversion?

We have frequent visitors too but feel that the house needs to be set up for the people who live here full time primarily. It seems strange to me to give your daughter a tiny room and keep a bigger room empty much of the time

Itstartedinbarcelona · 01/06/2020 09:09

We were in a similar position and opted to have a loft conversion. It’s much less intrusive than an extension and (would have been) completed quickly - if it were not for lockdown! We now have much more space and we are still overpaying the mortgage each month to pay it off as quickly as possible. I guess in the current climate it would depend how secure your jobs are.

Egghead68 · 01/06/2020 09:09

Mortgage interest rates are so low that I thinkI’d go for the loft conversion if you need one.

MrsMoastyToasty · 01/06/2020 09:11

If you are intending on having more children then build up into the loft. Otherwise pay off the mortgage.

StokeyWonk20 · 01/06/2020 09:12

Debt is so cheap at the moment and you’re right at the start of family life. I’d do the conversion.

Mosaic123 · 01/06/2020 09:12

Garden room might be cheaper and DD can use it as a teenage hang out.

Scout2016 · 01/06/2020 09:47

Thanks everyone. DD now messing with bowls of slime so I will have a study of replies when things are less messy. We aren't having more kids. There aren't really any hotels nearby as it's a residential rather than tourist area. One of my parents is disabled and both are pensioners so they tend to get waited on while here... not sure how staying elsewhere would go down. We are late 30s. My job fairly secure, DH is self employed so variable.

OP posts:
BernadetteRostankowskiWolowitz · 01/06/2020 09:54

How many years would it add onto your mortgage to release funds for the extension?

Wilma55 · 01/06/2020 09:54

I put off extension till mortgage was paid off and regret it. I feel those were wasted years where I could have had the benefit of the extra space.

TheFaerieQueene · 01/06/2020 09:56

Pay off the mortgage. Every time.

TheVanguardSix · 01/06/2020 09:58

I would compromise by getting a garden room (as mentioned above).

madcatladyforever · 01/06/2020 10:03

Before coronavirus I would have said do the loft extension but now with a big recession looming and uncertainty about a 2nd and 3rd wave I would pay off the mortgage and hang on for a bit to see what happens.

Crosswordocelot · 01/06/2020 10:07

could you make the bigger room DDs room (maybe with double bed) and ask her to sleep in the small room when visitors came?

Fairybatman · 01/06/2020 10:09

I would pay off the mortgage but divert the amount of the mortgage payment into savings to pay for the loft.

You’ll never miss the money if you are used to paying it out and will have the security of the mortgage being paid. Depending on the size
of you mortgage payment the savings could build up quite quickly.

Lazypuppy · 01/06/2020 10:09

Definitely loft conversion. You'll enjoy more space and are used to paying mortgage

IdblowJonSnow · 01/06/2020 10:11

I would definitely prioritise your DD over guests! Move her into the bigger room, use the box for a study and get a good quality sofa bed for guests? Do u have space for an additional downstairs loo/cloakroom for a fraction of the price of conversion?
I agree, get your mortgage paid off. Lovely position to be in in these very strange times.

IdblowJonSnow · 01/06/2020 10:13

Also if (when) there are subsequent waves you dont want your house open to the elements during the next lockdown!
Pp had a good suggestion re saving as if you were still paying your mortgage. Then you can decide in a few years.

Waterdropsdown · 01/06/2020 10:24

As someone who lives away from family I would never not have a spare room for them to be welcomed into. I would do the loft conversion.