Practically every homeowner will, at some point, face a crucial decision: to move or extend.
Unfortunately, there is no clear-cut answer: both have advantages and disadvantages. In this post, we’re going to take a look at some of the factors that might play into your decision.
An extension may offer better value
A lot of people with growing families believe that they need to move to a new house to get more space, especially if there’s a baby on the way.
But is this true?
It turns out that most homeowners could get the extra space that they need without having to bother with moving house at all.
Remember, moving is a massive drain on your wealth. Not only do you have to pay estate agent fees, stamp duty, legal fees, and removal costs, but you also miss out on the opportunity to increase the value of your existing property.
An extension is different. When you have an extension done, you’re actually building the value of your property by investing in it, encouraging buyers to pay more when you do eventually come to sell.
Extensions can still be expensive though
Sometimes the costs of extensions can be higher than you expect because of unforeseen building issues, such as drainage.
Typically, an extension in the UK costs between £1,000 and £1,600 per square metre, plus VAT. You also will usually pay an additional 10 percent on top of this for architect fees, structural engineers and all the rest of it.
Builders, however, can discover unforeseen issues during the project, pushing the price up. You should be aware of this risk.
If you need to change location for other reasons, moving is the better option
No matter how glamorous the extension, it is never going to let you get closer to work or a desirable school for your children. Sometimes, therefore, an extension just won’t give you what you want: your only choice is to move.
Extensions increase the value of your property
Extensions might sound expensive, but there’s a lot to like about them.
Take loft conversions, for instance. A typical loft conversion costs anywhere from £5,000 to £15,000 – which might sound like a lot of money.
But consider this: adding an extra bedroom to your home can add 20 percent to the total value.
If you own an average £250,000 property, that means that you could eventually sell it for £300,000. In other words, extensions provide you with a positive return.
Moving house, on the other hand, could wind up costing you the same as an extension, but without any value-added (other than the fact that you get to live somewhere different).
It’s not always possible to extend
Sometimes, it’s not physically possible to extend. Perhaps you live in a terraced house or an apartment, or maybe you’ve been denied planning permission to make changes to your property.
Situations like these do come up. And while they’re rare, they’re also mostly unavoidable. You often have no choice but to move if you want to achieve a more suitable lifestyle for your family. Here at Cox Format we can certainly help you with your decision.Read More