Extending or moving?

Whatever you are trying to do with your home enables IFA’s in Bishops Stortford are here to talk you through the options.

Extending? Your location, and the level of demand for your type of home, could make a big difference to the financial implications of extending versus moving. "In high-value areas like London it can be worthwhile digging under the house to add a basement, but in other parts of the country it won't be worth it," says Helen Brunskill of Brunskill Design Architects.

Moving? The costs involved in building an extension are undeniably substantial, and going through building work can be wearing. Brendan Cox, managing director of estate agents Waterfords, based in Fleet, Surrey, believes buying is a better option. "It's not always sensible to extend," says Cox.. "Take a modern three-bedroom detached house on a large estate in Fleet, worth around £300,000. If you extended by around 300 square foot (about 28 square metres), that might cost you around £50,000 to £60,000. And at the end I would say it would be worth around £350,000, so at best, it's cost-neutral. Unless you are sure you are going to stay for a long time, it might not make sense."

Comparing the costs of moving and extending your house is not an easy task and unless you have the cash to pay upfront how realistic either option is could come down to one thing: the mortgage lenders. You will need a substantial amount of equity in your property before you can consider borrowing more. David Hollingworth of London & Country mortgage brokers says.

"The bottom line is that borrowing is very difficult, full-stop," he says "In principal, lenders will apply the same tests and rules whether you are borrowing to move or to extend. At a push, it might be easier to refinance to extend your own property, as buying incurs costs which might impact the size of your deposit."

YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP YOUR MORTGAGE REPAYMENTS.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE