WWYD? To move or not to move

[VivaLaSpag]

Currently own a 3 bed house-ex LA built in the 1980’s. It’s unremarkable bordering on ugly but inside we’ve made it look good as a result of many years of hard work. The neighbourhood is 🔥 and we want to stick around.
We bought when our financial circumstances were different and current mortgage is £1.2k per month. House is assumed to be worth around £550-600k and we have £300k equity.

Longer term we could really do with another bedroom and unfortunately the house is not suited to a loft conversion.

There’s a number of houses on the market locally that are 4 beds in the region of £800-850k. Think along the lines of London zone 2/3 Victorian terraces with the ubiquitous kitchen extension and loft conversion, all nicely done rather than doer uppers.

Our household income is now £130k with both adults working one FT and one PT. Could be £150k if PT person went FT.

Having done the maths I think we could do the bigger house but….it would be absolutely top top of our budget and would mean a significant change to our current lifestyle as essentially the mortgage payments would double and then some.

WWYD? Would you stretch?

I would stay where you are. It sounds like it suits your needs and the only drawback is that it is not beautiful.

I'd stay put. Is the garden big enough for an extension or a log cabin? Which could provide extra space for a reshuffle of rooms the create that extra bedroom? Would be cheaper than moving.

Longer term think about

Childcare
Salary rises / bonuses
Job security
Holidays
Cars etc
other debt

Long term would not be a struggle?

Having three little kids we went bigger and brought 4 beds and life is much easier - house have put down the 3 beds by miles - handy when we downsize.

Earning 50K between us back then - not doubled salaries in the last 10 years and house has gone up by 80%

Do the long term maths.

I’d aim to hang on until a four bed that isn’t so swanky (and therefore cheaper) comes up in the area you prefer or slightly outside it. Could then add a bit to mortgage and move without it having such a huge impact on your lifestyle.

I always get nervous about the ‘edge of what’s doable’ moves as you just never know when life will chuck a spanner in the works with illness etc