If you are reading this blog then you are probably considering your options for your home. Maybe your family has grown, you are looking to run your business from your home or you would just like a change to create more space. All of these mean it’s decision time………. Do you move home or do you extend? What should you do?
Your decision could be very simple, you may have no room to extend or convert as you live in a flat or just don’t have the space for your dream home. If you do have options then this is where the fun begins. How do you make a decision that will please your family and give you the home and space you are looking for? Well, in this blog we will look at some of the major factors you should take into consideration.
- The costs involved.
- House prices in your desired area.
- How emotionally attached you are to your current home.
- Your future plans.
Let’s take a look at each of these to try and help you.
The Costs Involved.
With house prices rising constantly it is generally considered cheaper to extend your existing home rather than sell and move. Many people are also very reluctant to ‘throw money down the drain’ by paying estate agents, solicitors fees and stamp duty. All of which is money that needs to be paid but you see nothing for.
Shown are the rates of stamp duty that need to be paid (2017 rates). According to Rightmove the average cost in 2016 to buy a terraced house in Essex was £310,875, a semi-detached was £349,627, with detached properties fetching £488,504. You are looking at paying between £5,543.75 and £14,425.20 just on stamp duty alone!
As a general rule of thumb you can expect to pay between £1500-£2000 per sqm for an extension depending on your requirements and specification. On top of this there is VAT, architects, building control and structural engineers fees.
Stamp duty alone on a £350k property would be £7,500. If you were to extend this money would go a long way towards and extension with the added benefit of being able to see what you money is buying!
For both moving and extending you may also have to consider how you will fund this. You will need to think about speaking to your mortgage provider to see whether you are actually able to raise the finance. There are some good websites which can provide guidance as to how much you may be able to borrow. (www.moneysavingexpert.com/mortgages/how-much-mortgage-borrowing)
House prices in your preferred area.
The question you need to ask yourself is ‘Can I afford the size of property I want in the right area?’ It is important to remember that your property should have increased in value, but so will properties around you. House prices are influenced greatly on location, local schools and distances to amenities. You only need to look on house buying websites such as Rightmove (www.rightmove.co.uk) to see the amount of information you are given for each property.
How emotionally attached you are to your current home?
This question can only be answered by yourself and your family. If you love your home and the location, and have the space to extend then I think you have your answer.
Your future plans.
You don’t want to spend all this money on moving or extending only to have to re-think your home again a couple of years down the line. So when deciding between extending or moving you need to look at the next 5-10 years and what your plans are.
Hopefully reading this has helped you a little towards your big decision. If you would like to discuss extending your property please call or email us at Grant Builders and we will be happy to help. Please also read our blogs which explain the process of building work. (http://bit.ly/2zhOMxG and http://bit.ly/2wQj0Xa)