Would you move or extend?

[justsayingthat]

We need another bedroom. Currently in a 3-bed, but need a 4 bed.

Options are either to extend current property/ loft conversion or to move to a bigger property.

Both options would requiring borrowing additional money. No plans or quotes yet, but I'm guessing around £80k-£100k for building work, or we'd probably need to add an extra £100k-£150k on our mortgage to get a 4-bed in our area plus moving costs.

Financially, both are feasible. We won't be hurrying to do this immediately, given the current situation with interest rates but we do need to have a plan to do something within the next year or two.

What would you do? Hassle of building work but slightly less money, or borrow the extra to go somewhere that already has the space?

Do you like and have you spent a lot of money on your current home?

I’m in a really similar situation I’m very much leaning towards moving if the right house comes up

It really depends on how much you like your house/neighbours/area.

I've done loft and rear extensions on 2 properties in the last 10 years and right now I'd definitely say moving is less stressful than extending.

But are you remembering to factoring in all the moving costs? Stamp duty alone can add a massive amount.

Reason for moving rather than extending I don’t think people honestly realise the disruption and how hard it is living in a building site. I’ve done it a few times now and it’s not good. Additionally, the cost of labour and building materials has gone through the roof and there’s absolutely no guarantee you’re gonna get your money back. Either we spent over 100 grand improving the last house and I didn’t get all of it back

Location, location, location. If where you are is really good re immediate neighbourhood, distance to schools, useful shops, train station, next big town AND has a plot that will take the extension without losing good outside space AND your house has deficiencies that could do with sorting out, then renovate.

Otherwise, start looking to see what is in the market elsewhere.

Thanks for the responses! I think I am swaying more towards moving.

We live in a nice street, close to good schools, train station etc. No problem with the area. The biggest issue with our house is that planning permission has been granted for a small development (6 houses) to the rear of our garden- this will affect our overall outlook. I know we'll have to declare this if we go on the market, and may affect the market value 😏

If we moved, it would have to be in the immediate area, as we like it here and I wouldn't want to change my kids' schools.

Will just have to keep an eye on Zoopla and Rightmove and maybe get going with some valuations/ plans to get a better idea of options and costs.

Hi, I know this is quite old now but was just wondering what you did in the end? I am currently in exactly this position. I could literally have written your post. I'm leaning toward moving due to having 2 small kids. But only if the right house comes up

We extended over moving but 8 years ago before the cost of building materials skyrocketed and when borrowing was cheap.

Original house value: £370k
Original equity: £186k
Original mortgage payment: £826pm
Building Costs: £75k
New mortgage payment: £1032pcm
House value after building work: £520k
Equity after building work: £259k (49% LTV)

Vs. Moving

Original house value: £370k
Original equity: £186k
Original mortgage payment: £826pm
New House value: £480k
New mortgage payment: £1,400pcm
Moving costs: £20k (some covered by savings, some from equity)
Equity: £175k (36% equity)

Honestly, I wouldn't do it again. The disruption of living through a renovation nearly cost us our marriage. I suspect the financial benefit has been wiped out through the increase in building costs and interest rates anyhow.

I’ve been doing the maths for two years since the day we moved into our house which is too small but we had to live somewhere so sometimes you just have to jump in.
The building work is just too expensive at the moment