When your home no longer fulfils your needs, do you renovate, or do you move? It’s a question that’s almost as old as time.
Almost a fifth of people in the UK renovated their homes in 2020, taking advantage of the extra time spent at home during the various lockdowns. But how do you know when it’s time to move on?
Here are five factors to consider:
1.Figure out cost vs value
You need to consider what it is about your home that no longer works for you and whether you can ‘fix’ it.
For example, if you want open plan living, ask yourself whether it’s possible to knock walls through and reconfigure the space to suit your needs – and how much money you’ll need to do it. On the other hand, if your home is dated and you want to give it a facelift, think about how much it would cost you to rip out appliances, bathrooms, etc and replace them.
Once you have a ballpark figure in mind about the cost of renovating, it’s time to consider whether those renovation works will add value to the potential selling price of your property.
Let’s say your home is currently worth £200,000. Just because you spend £30,000 on renovations doesn’t necessarily equal an asking price of £230,000. Of course, you also have to balance that judgement with your quality of living – meaning that even if it doesn’t add value, but it will increase your happiness, it may be worth it.
Once you’ve mapped out the potential value, the next thing to do is to do a search on Rightmove to see if there are any properties which tick all of your ‘boxes’ for £230,000 or less. If there are, they’re probably worth viewing.
Don’t forget the costs involved in selling a home and factor those into your calculations too.
Another major factor which will impact your decision about whether to move or not, is the location of your current home. If it’s in a perfect location – close to your family, with good schools nearby, in an idyllic setting or with plenty of amenities – then you may be more reluctant to move.
If you can’t find a new house in a similarly great place, it might be better to renovate than move, even if it is a bit more expensive.
On the other hand, you might not like where you live, or it might not be suitable for you in the future. If you’re thinking of having children, for example, you might need to be closer to schools and public transport. Even if renovating is cheaper, it might be wise to move to get to a better location.
Our homes often hold deep emotions for us, so if you love your home and will struggle to let memories go, then it may be worth staying and renovating, even if it’s not perfect. Not every decision in life needs to be, or should be, led by money.
If it’s extra square footage you’re after, you could toy with the idea of a house extension if your garden permits the space.
Consider that you may need planning permission, and you will also have to pay for Building Regulations approval. However, building an extension is a great way to add extra space without having to undertake the additional costs such as stamp duty and legal fees.
More often than not, adding an extension will add value to most homes, but look at other properties in the area to assess whether there is a ‘ceiling’ to the market price of your home. Good design, layout and functionality of the extension is also important for generating value.
These are the average costs for a single-storey extension in the UK, not including VAT. These prices will vary depending on size, location and extra services.
|Extension Per Square Metre||£1,500 – £2,000|
|Planning Permission||£190 – £206|
|Property Survey||Starting at £400|
|Architect Fees||(Between 3-10% of extension cost) Minimum of £2,700 to £4,000|
|Building Regulation Checks||Usually 10% of extension cost|
You should also remember that it may be possible to release some of the equity you have built up in your home to fund your renovation work.
In the end, it all depends on what matters to you and your family. Weigh up the costs and follow what makes you happy.
To talk to us about remortgaging and taking advantage of record low mortgage rates, contact us today:
Approval no. Sol9835