Renovation advice

[m0mmy2be]

Hi!

I'm really just looking for any advice/tips I can get.

We currently own our first home (2 years, new build). We have just had our first baby and looking to get a bigger house, but really keen on doing a renovation project but I have no clue how this would work financially.

We have a 40k deposit, which is a lot for the area we live in (400k could buy a decent sized 3/4 bed). We would also have any equity from selling our current house (hopefully!).

My real question is, are there such things as loans specific to home renovation with ok interest rates? How on earth do I know roughly how much the renovation would cost? Where do I start?? Who do I speak to?

Thanks in advance

If you’ve got a newborn, are you really up for a renovation? Permanent dust, hours of noise every day etc. Perhaps no kitchen for a few weeks, days of having no heating or water turned off etc.

Other than that, you need to have money for the deposit, fees etc + separate cash for any work required and loads of contingency.

You can get a personal loan if you’re eligible but you might like to think about loan repayments and childcare fees etc It could be stressful to end up under a lot of financial pressure.

Cost-wise, a full refurb + an extension and loft conversion etc can easily cost 150k+

If you get a house that is sound and spacious but just needs a wall knocked through, new kitchen, maybe an en-suite added etc it can be done bit by bit and is less stressful. A new bathroom costs several thousand. A basic kitchen can be done for under 10k too.

I don't think there is a specific loan - just a regular personal loan.
Are you doing the work yourselves or hiring trades? Depending on the amount that needs doing you may not want to be living there at the same time (no water, no kitchen and at so.e point no toilet!) Maybe start with a smaller project.

Thanks for the advice!

We wouldn't be living in the property whilst renovating so that's a bonus, but I agree, perhaps we find a house that needs mostly cosmetic work rather than structural and go from there!

Take your time. Think about the level of reno you REALLY want to do and can realistically accomplish and go from there.
It's really a how long is a piece of string question but yes there are loans available for home improvement, you can also get a larger mortgage for same purpose. Do your maths and see what you can afford and plan accordingly

Where will you be living?

On any potential renovation property you need to do the sums first on how much it costs to purchase + renovation costs = total. Then, does that total exceed the ceiling price for houses in good condition in that area?

For each potential property you'd need to assess how much needs doing, ask a builder to give an estimate and then decide if it stacks up financially.