Save for house extension or house move?

[rootsandwings89]

We've been in our first home for a year and a half, it's a small 3 bedroom semi. We're a family of 4 (DDs aged 6 and 1) with a dog and already we feel quite cramped. It can make do for now, but will definitely need more space in the future as DDs get bigger. I really want to host dinner parties for friends/family etc. but our kitchen is tiny so it gets me down we can't really socialise here.

We don't have much savings, we're currently paying off credit cards and then want to build savings up again. Our mortgage is fixed for another 3.5 years.

We thought about getting the kitchen extended but we're quoted £50k which was more than we thought. We don't know whether to extend or look to move in 3 years when our mortgage is up.

I try to be positive but it really gets me down sometimes so want to have a plan in place.

WWYD?

Moving includes so many extra costs (stamp duty, removals, inevitable decorating etc) but if you need more upstairs and downstairs space then moving might be better than extending.

Either way spending money on a kitchen extension will probably be a good investment. Have you checked other similar houses to see if you would get the money back when you sell?

I’ve had extensions done to my property but I’ve lived in it for 32 years now - and with house prices inflating as well as the extension work being done - it has increased the value of the house compared to others in the street. We had it valued 6 months ago as thinking about selling up and moving… but gonna wait for a few more years yet.
When it comes to building work, don’t always get one quote; get multiple and look at reviews or the portfolio if you can.
Personally, if it was me, I’d be looking to sell up and move. Too much faff building an extension when you don’t plan to live there long.

I had mine extended, plus kitchen refit, utility room, office etc. It cost £60k and was hard work while it was being built, but I love it now. I chose to have French doors, and skylights in the east facing roof so it gets all the morning sun.

It is far better value than paying stamp duty, fees, moving costs, all the stress and trying to time a move to fit with the school year.

And I like my neighbours and the area so I'm glad not to move 😊

Remember you are probably at peak toy in terms of the size of stuff for the kids.

Are you likely to be able to afford a much larger mortgage? If you've only been in 18 months assuming the cost will go up when your fix ends, even without moving as you are probably on a low rate (and while interest will stabilise can't see them ever going back to super low levels).
Affordability tests are also harsher than they were so unless your income has improved, it may not be easy to borrow more.

Are there any more simple changes that might make it a more enjoyable place to live for the next few years? A change in layout, better storage etc. Or a covered area in the garden so you can host BBQs.

Sometimes relatively small changes can improve the way you live in a space, even if it's small