New build shared ownership or too small and extend?

[dangermouseisace]

I posted a couple of weeks ago about me moving into the living room of my current place due to not enough bedrooms for children. I was/am hoping to buy this place and extend. But I’ve surprisingly been offered another option-shared ownership elsewhere. I don’t know what to do.

My current home is in a good location, with a sunny garden with a pleasant outlook, close to kids schools, public transport links, we can walk to recreational facilities and shops. But it’s too small, and it needs a lot done to it. I could afford to extend it and it would be fabulous. My plan would be to live here forever (I would build in disability friendly elements). But I don’t know if I could cope with all the work plus my eldest son is final year GCSE’s, and I work from home full time.

Or I could buy 75% share of a brand new 4 bed 5 miles away. Not anywhere near as good a location- kids would need to get buses to school. Living room and kitchen are a bit small for my liking. Garden tiny. But I could move in a couple of months, no work necessary. I wouldn’t want to live there forever but don’t think I could afford to move back where I am now (it’s getting £££££££££) and I worry about getting stuck with negative equity.

I’m not one for giving life decisions to strangers but I can’t work out what to do and maybe some thoughts of other people might help? I get extremely anxious about anything to do with houses or moving and it’s really hard being the only decision maker. I know what the kids would say- move- because they want their own rooms and more toilets, they don’t give a toss about kitchens, so no point asking them!!

Depending on the nature of your work, could you decamp to a cafe or rented office space during the worst of the works?

Builders likely to knock off reasonably early so assuming your gcse year child is in school they should have silence to study once they get home.

Personally I’d not move to a worse location. Yes the kids might prefer more rooms and loos but you’ll not prefer having to ferry them around whenever they miss the bus or want to meet friends.

I’d take the upheaval of building works personally - could you afford to put a temporary office in the garden if the house were untenable? Sounds like decent location, lovely potential, and set for life once done. And you’ll clear the mortgage one day. Shared ownership and you’ll still have rent. Plus potentially harder to sell.

Personally, I would extend (and it sounds as if that's what you want to do too). For so many reasons - firstly, it sounds as if you love your current home and the only issue is the lack of space? If you can afford to buy and invest some money it it, do that.

From an investment point of view, it sounds as if your current location is a good bet and I'm always very sceptical of the value of new builds. If the location of of new build isn't great either, I'd give it a swerve, and that's before considering the ins and outs of shared ownership!

Your kids' opinions do matter, of course, but only to a point. You say you could stay in your current home forever, so you need to think past the point at which you could reasonably expect them to move out on their own. When they've left home, where would you rather be?

Ps we've just bought our first home and, with a second baby on the way, we're likely to be in a similar position as you in the next few years (we love this house, but it's not big enough for four of us as the children get older!). I've looked at house prices for four bedroom properties in our area and they're all £100K more than we bought this house for. We could do a bells-and-whistles extension and it would still cost us less than it would to buy a larger house. Have you looked at the increase in value you might expect from extending and improving your current house? If it's your forever home then the value of it doesn't matter hugely, but it's a consideration, surely?

From what you say,moving does not sound like the best bet. Do you have to extend or would a detached garden room and some juggling the space in the house be enough? The children aren't going to be with you forever and you don't want to wind up in a too-large house somewhere you don't like and paying rent. I'm wary about this kind of move because I know single mums who have done them and tempting as the new built house was,that wears off pretty quickly.

I'd extend. It sounds like a no brainer.

Sounds like you have teen DC and one or more may move out in a few years making having 4 beds redundant and you're left with with a pokey downstairs and garden?

We extended a few years ago, when we looked at the real cost of moving, including the solicitor, removal company, estate agent fees etc. it worked out much better to stay and extend.

Extend (with a possibility that part of an extended upstairs could be used as a semi self contained lodger nest /airb&b to provide income after the kids are gone?)
It’ll be hideous for a year but then done and you’ll be living in the right place.

Have you factored in the current huge shortage of building materials and skilled labour for your extension? I have seen post after post from people who can't get tradespeople in for several months, whose costs have inflated massively etc and no sign of things improving soon.

Would one of those wooden properly insulated out buildings with electrics in your garden be affordable and a solution?? Just thinking less stress than extending!

I've looked at house prices for four bedroom properties in our area and they're all £100K more than we bought this house for. We could do a bells-and-whistles extension and it would still cost us less than it would to buy a larger house

Bog standard kitchen extensions are costing way more than 100k in my area presently.

OP if you're being realistic about the cost of all you need doing and know you can afford it I think it's a no brainer to stay. Plus I think you'd regret it if you didn't, and end up resenting your new home.

Thank you all for your thoughts. I was happily surprised not be told I was being selfish by wanting to stay here! My heart is absolutely in this place.

I’ve got friends in the construction industry so am aware of the ongoing issues, and have factored that in re costs and how long I’ll have to wait to get started.

I can’t WFH in a cafe due to confidentiality issues, but could potentially put an “office” of some sort in the garden… I would still want to extend the downstairs as a minimum, but it would make the wait less infuriating. Good idea everyone who suggested it!

Thank you again, you’ve all been really helpful.

If you could afford say a summerhouse or large shed with power in the garden whilst the work was being done, that could work.

I wouldn't want to move somewhere else when my heart was where you are now.

If you know people in the trade, an extension seems the way to go.

I would stay where you are. It seems very obvious to me from what you have said.

I would extend, definitely not get into shared ownership. And all the really important stuff is there where you are. How extensive is the work that you would need to do? Would it actually financially work out cheaper to rent somewhere for a month or so while you get it done?

Currently living in and trying to sell a shared ownership property, stay where you are, don’t go from owning your own home to a shared ownership it would be a big mistake!