Move or improve?

[jellybelly20]

Hello, just wanted peoples thoughts.

We have a young child and live in a 3 bed detached home. We are due to remortgage in November.

We can't decide whether to move or improve. We are both starting new jobs and I have taken a pay cut.

Currently- mortgage wise- when we brought the property our LTV was 16.8%. At remortgage it's looking at more like 42%.

Ideally we want a new kitchen, a conservatory/ extension and another bedroom upstairs with an en-suite. But at present would settle for a new kitchen and conservatory.

We want to have another child and although we have 3 bedrooms- 1 is our room, another is our child's and then the other is a guest room/office room.

The housing market looks bleak and properties in our price range would need a LOT of work to do.

What are peoples thoughts? Move or improve? Just extend downstairs and then do upstairs at a leather date? Just don't do anything?

Thanks in advance

It's hard to say with out knowing your local market. How much extra is a 4 bed house in your area? Can you afford the next jump up and the renovation costs? How much would doing the extension to your house cost? I would get some ideas form a builder on costs and do it all in one go as otherwise you are likely to have to repeat work.

You need to work out what's more cost effective and what works best for you.

Be aware that building costs are high. We're having a v small side return infill and it's going to be about £40k. However the house works well for us otherwise, we like our location and neighbours, & we'd have to pay other costs if we moved to a slightly bigger house (difference in price, estate agents, solicitors, searches, removals and stamp duty).

It'll cost more to do the work than it will add in value, but we will get exactly what we want - it's unlikely we'd find a house for sale that didn't involve a compromise.

Our house is probably worth about 280k/290k.
The houses that we would be looking at are about 390k

We have about 110k in equity.

I just don't know what to do for the best. Part of me feels it would be more economic to stay and extend.

The only thing I really don't like about our road is that it is narrow and there more cars. But I think that's the same everywhere really

School catchment areas would be the same regardless.

@twirlsandwhirls

Our house is probably worth about 280k/290k. The houses that we would be looking at are about 390k

We have about 110k in equity.

I just don't know what to do for the best. Part of me feels it would be more economic to stay and extend.

The only thing I really don't like about our road is that it is narrow and there more cars. But I think that's the same everywhere really

School catchment areas would be the same regardless.

Are you the OP? I'm guessing so from your message.

So we didn't want to go above 80% LTV when we did extra borrowing. You could go higher but obviously you'll get less favourable interest rates. I'd suggest speaking with a broker to find the best deal.

We didn't want to start again with a new place so extending is working better for us. I'd suggest getting some ideas of costs for extending/double height extension.

A home office doesn't have to be on the first floor so consider whether a bigger footprint single storey extension (with an office space downstairs) or a loft conversion would work better too.

Quotes are usually to a basic plaster finish so don't forget to factor in extra for things like a new kitchen & fitting, bathroom suites etc, and VAT.

I am the OP

So coming back to the debate-

To move home- we could afford our dream
house if we took out a 40 year mortgage. However it still might need work doing to it.

We've had an estate agent come out who's valued our house at a good price. We have no doubts it won't sell but even they have said it's been hard to find houses for buyers.

Secondly, they've said if we extend it probably won't add much value to the house. For example a 40k extension would only add 20k to the house.

Also I've seen mortgage rates are going up. So basically- what do we do????

What are the schools like where you are? Are you happy with where your children will realistically get, not what on paper they’re in the catchment for? That would be my first concern. If that’s covered ok then I’d probably stay and improve if you’re happy with everything and could be there for the long haul.