Would u spend more on extension that house is worth?

[Hyperion100]

Just that really. Its probably a 5 to 10 year house.

We were planning on doing a small 3m rear extension but after 5 quotes came back ranging from 90k to 120k ex vat, ex kitchen. We dont feel like we can justify the cost.

The current layout is "fine" but when we bought a few years ago we always planned to extend and lose the tiny galley kitchen but we cant believe the costs are so high. A neighbour did the exact same build 5 years ago for 80k inc vat and inc kitchen.

Weve spoken to 2 local estate agents who said the work would only add around 50k to the sale value in todays market.

Will costs drop over the next few years? Surely they cant stay this high as no one will be able to afford any building work?

We spent more on an extension than the value it added at the time. I don't regret it at all as it made our home much nicer to live in. However we always knew we would be staying for at least 10 yrs so it was worthwhile for us.

We're just at the end of an approx 16sqm extension that has cost us £90k all in. That is everything right from architect and planning fees, build, new kitchen and utility, sanitary ware, new flooring, decoration etc. Every cost totted up from start to finish.

I very, very much doubt it would add £90k value to our house. It'll certainly add a chunk of value, and make the house much easier to sell (it was previously a 5 bed house (loft convert) with a tiny galley kitchen, so out of balance), but I suspect our original house value +£90K would be above the ceiling price for our road. I thinktat current prices it would probably add c.50k, but of course that will fluctuate as house prices do.

That said, we did it because we're not intending to move, and we wanted the house to work for us. We've now got a downstairs loo, a big eat in kitchen rather than a tiny galley, plus a utility. And when you factor in the costs to move up (stamp duty/sols fees/EA fees) plus the disruption and that a good chunk of the costs are relating to kitchen/utility/flooring/redecoration rather than the cost of the extension itself (so kind of feel more like general house maintenance rather than build costs), it felt like a worthwhile thing for us to do. I wouldn't have done the same in a 5-10 year house.

London

Its a 3m x 6m so 18 sqm in total.

With VAT, kitchen, flooring, nice fixtures, the glazing we want plus contingency its probably closer to 130-140 😂

We took advice from estate agents when we were considering extending our kitchen/converting our loft. They all said we wouldn't get our money back and advised an extra bedroom was a better option (as marketing a 4 bed allows a higher asking price than a 3 bed). I really wanted to have the extended living space and a large kitchen diner instead.

We went ahead with both as dc3 was on the way and we felt it was a long term family home. However, once we had finished we realised that the changes, while great, couldn't make up for things we wanted like a bigger garden and looked to move. We more than made our money back as buyers loved the work we had done and it went to sealed bids. The buyers definitely paid over the odds at the time, but in the intervening years prices locally have rocketed and they got a bargain for the space!

Unless you're planning to move very quickly, I would always say go for it. Having a home that works for you is worth paying for imo. Like a holiday or a car, we accept that the use of something that gives us something costs money per day and we don't expect it to make us money.

We're in the same position. We're not going ahead with the extension but doing a slight rejig in the existing footprint instead. We can't afford to lose the money that the difference between the house sale price and cost of the work would cost so it's a no brainer for us.

I don't think prices will come down tbh. Materials are on an upward trajectory, driven by all sorts of global events and issues. Tradespeople are also in short supply.

House prices may fall slightly but I also don't set much in store by this is that all that happens is less houses come to market, and this then drives up prices of those which do. If you do a good job with a good layout and nice finish then your home will sell quickly.

100,000

you have this cash sitting in your bank?

or you plan to borrow it?

either way how is it cheaper than moving?

have you looked at what an extra 100,000-120,000 can get you?

have you got quotes from further afield?

I did this and saved an absolute bomb!! Well about 50k I’m not in London though

If you're borrowing the money, it would all depend on the current equity of the house. We've just spent 6 figures on a total refurb of our house. I very much doubt that it's added the same value but we didn't have to borrow, and we have approx 30% equity. We have no intention of moving either, this will be our 'last' home.

I would do the extension if the house was your 'forever home' or if you were planning to stay at least 20-30 years. I wouldn't bother if the house is a stepping stone of 5-10 years.

Similar circumstances here and we have decided to move. Quotes for the reconfiguration (not even an extension) have been double what we expected and that doesn’t include windows (whole house needs doing), decoration and the kitchen. And we’d probably have to move out and rent for a couple of months. So we’re moving to a similar sized house where it’s already done. Similar cost much much less hassle.

No I wouldn't on a house of that value.

Friends are in a similar situation, in one sense they would lose money due to ceiling price but more space means a bigger house which is a more money & potentially still needs work depending on what's on the market.

Something to consider is that a ceiling price isn't set in stone. People will and do pay more. I paid 100k more for my house than the rest of my street as it's on a much bigger plot. I do think I overpaid, but I was willing to do so in order to get the space I wanted, which I couldn't have afforded elsewhere. So yes, I've broken the golden rule and own the most expensive house in my street 🙈

I posted too soon but who knows what will happen in the next 5 yrs re houses. It may be that houses with work on become more desirable because the cost & stress of doing it yourself puts buyers off.

@CellophaneFlower yes ceiling prices do move

Another 120k gets us a bigger house on a nicer street but looking on rightmove, they all seem to be gut jobs that probably need at least 50-80k spent on them. Bake in the 40k in fees to move and it becomes a coin toss.

How does it worth with getting builders from out of the area? Do you front the cost of their accommodation for the build duration?

*work

I would also do it (if you can afford it) as it will make a big difference I expect to how you live. 10 years is a long time to live in a property that isn't ideal, and also to predict how much a house will be worth when you come to sell in a decade.

Sweeping generalisation too but I think in cities like London (perhaps more so than other places) there is a definite market for "done" / renovated properties. If you're commuting / working long hours you may be willing to pay over the odds for a house that has already been renovated.

I would look to shave off the costs though - shop around, splurge on a few key items but look to make savings wherever possible. Keep a tight rein on the budget.

Its also worth saying that Estate Agents are unlikley to be giving advice that says "yes, stay in your property". Its in their interest to say the figures don't work / you won't get the value back because they want your house on the market (and the one you'll buy) so they get their commission!

I agree with this. We knocked our walls down 5 years ago to make a huge dining/kitchen/lounge. It made a tremendous difference to our lives and now we are selling, it has not only added considerable value, it has also added appeal (as surveyor advised open-plan is sought after). It depends on what you are doing it for - to improve you and your family's living conditions and/or adding value when you come to re-sell. In this unpredictable climate, you should consider the appeal of staying put and improving your house as you never know what is going to happen in these uncertain times.

We're about to spend roughly 80k on an extension that'll only add approx. 40-50k, but we have no intentions of moving, and we're getting the exact house we want once the building work is finished.

I also think if you add stuff that's wasn't there eg toilet, utility, pantry etc that's more desirable then just more kitchen space

We are because we want to stay in the area, love our street and to move to a bigger property in the area would cost us vastly more than the extension would. We are not planning to move any time soon and the extension will change how we use the space in our house massively. Building has just started!

OP, we extended during lockdown 1 so price rises, shortages and general chaos was the theme of our reno...

However, I would say that there is a cost in stress and time, neighbour relations, etc, which isn't reflected in the quotes. I was in tears a couple of times - when things went wrong or tradesmen were unreasonable and unpleasant to deal with - and I'm not a cryer! :)

We had a lead contractor who we liked a lot, trusted, and who was managing the day to day for us while we lived out with my lovely and patient FIL. Despite having him there, the build still over ran hugely in time and money - approx 30% higher in both than we were banking on.

We love our home, the extension is gorgeous and we have no plans to move - so it was just about worth it! But I just wanted to flag that getting major building works done is never a walk in the park, and there's more to factor in than just the financial costs.

Best of luck!

Wow - a 30% overspend would break us. I dont know how we'd cover that.

We're fully expecting it to be a pretty horrific 3 months with everything piled up in the lounge and us living upstairs using the spare room as a makeshift lounge.

We're one of the few houses on the street that havent done a rear extension so I'd hope that there is some understanding on that front.

We just need to work out where we can shave chunks of this off or do ourselves to make it a more realistic spend.

Interesting about open plan being desirable as we've been told the opposite. Thanks to rising energy prices, people are preferring smaller areas as easier to heat.

When we looked at doing major work, we got in an estate agent to see what they thought the value would be when done. They advise it would be worth it, so we went ahead. We went quite over budget - a £40k loft extension ended up as a £60k one (no VAT, we paid cash), partly due to the mess the previous owner had made of the existing extension. We now have a fantastic space that we've really enjoyed for several years, and now we are selling the house the space is proving very attractive to buyers.