Stay or move?! Mortgage free?!

[Mellomarsh]

Just looking for some objective opinions on our situation. Can't decide what to do and don't really want to discuss in such detail in real life!

Current situation, DH, 2 DCs (4/2) and I live in a lovely 3 (double) bedroomed detached. Has all we need in the house (ensuite/utility/open plan living/play room) though every single room is quite small. Lovely location, good transport links ect. However, we can't shake the niggle that we need to move to somewhere bigger...with a view to future proof the house, offer some additional living space and most definitely another bedroom. We often work from home and are sat at the kitchen table. Kids will eventually get bigger - as will their friends and I want them to have the option to be here with friends/live here as long as needed ect and four adults in our current place doesn't really offer a lot of privacy! Obviously this is a long way off but inevitably house prices will only rise in the long term so working out when and if to bite the bullet...

Additional info making my decision that bit harder - we have a smallish mortgage left of 115k, BUT we are about to recieve a gift of 100k (extremely lucky and privileged I know). Which would mean absolutely miniscule mortgage which we could pay off very quickly.

Would we be absolutely mad to move now?! Abandon the option of being completely mortgage free with 2 young children?! Or is now a good opportunity to negotiate a good price on somewhere new? (Likely would need a mortgage of anywhere between 130-160 for new property). We have zero other debt, no cards/car loans. Only other commitment is a small childcare bill which will be done next year. We both have secure jobs, I work part time (so potential to up to full time if required though I'd prefer not to!) Rough household income around £70-80k.

I guess what I'm asking is what would you do if you were us?!

Thanks in advance!

One thing I would think about is your area now and schools. You have a 4 year old who I assume you have a school place for or will start to.think about soon and a 2 year old who will follow them.

Any move away from your area will mean the stress of finding a new school place

It may be best to stash your money and wait it out for potential secondary school move (if you like your area and it has good schools and you can afford the next house up)

We are in a very similar position although we have 3 dc 5, 2, 2 (didn’t plan twins!) and a 4 bed house but DH WFH permanently so smallest bedroom is given over to his study. The garden isn’t big enough to put in outbuildings or an extension and there’s a ceiling value to the area, so we might not recoup our costs if we make major renovations. We live on a quiet cul de sac but it’s a bit industrial and I’d like to be somewhere more rural.

However, the house is big enough for now and we will need to do the twins’ school application next year, so staying here another couple of years and saving up makes sense. Our childcare costs will be minimal by then. Also the “upsizing” houses we would be interested in are all overpriced- all been on the market for at least 6m and in some cases over a year.

If an amazing, bargain priced house came on the market we would consider moving sooner but that never happens!