Move or Improve?! By Tayo Oguntonade

Reports suggest that the average UK homeowner moves every 19 years, so it is truly a big decision. It’s also one that’s likely to be made at some point – especially in growing families. And Sarah and Andy are no strangers to giving decisions like this some consideration. That’s why in the latest episode of Make Your Move, I gave them food for thought when it comes to moving or improving.

What is Move Or Improve?!

So, this is a situation where homeowners like Sarah and Andy decide that they need more space. There are two real options: one, move to a bigger home or two, improve (or extend) your existing home. The move part is quite simple. Something that people do, often when they need more space. But with improve, it can vary. It might mean extending, or it might mean repurposing and renovating a room that isn’t used much – thus providing more space. Even splitting a room that is too big for its current use can be a way of improving your existing home.

It's always worth considering these two alongside each other, to make sure you are meeting your needs without spending more than you need to. So, let’s take a deep dive!

Move: the pros

1. Immediate space solution

Moving to a new home could provide an immediate solution to space needs. Instead of dealing with any renovations, you can simply buy a property that has the space you require.

2. New area

Moving sometimes involves relocating and this can offer new opportunities such as better schools, a shorter commute, or a more desirable neighbourhood.

3. No renovations

By buying a new home, you could avoid the mess, stress and inconvenience of a renovation that is often understated. This can be a significant relief for families with young children, or those who work from home and want to avoid living in a temporary construction site.

Move: the cons

1. High costs

Moving comes with several costs, such as estate agent fees, mortgage costs, stamp duty, moving expenses and more.

2. Leaving your home

Leaving a home filled with memories can be emotionally challenging. The attachment to your current home, neighbourhood and neighbours can make the moving process difficult for all family members.

3. Moving into someone else's vision

When you buy a new home, this is somewhere that someone else called home, or a property a developer determined what a home should look like. It can take some time for movers to feel like they’ve really put their stamp on a new property.

What moving looks like in practice

The process of moving begins with finding a property that matches your criteria as well as your affordability. Your criteria you can do alone, but your affordability is just as important. A Skipton mortgage professional can help you work out how much you could afford and take you through the typical costs of moving. They will also be able to provide you with a mortgage Decision in Principle, which will allow you to begin your search with a level of confidence as you have seen a mortgage professional.

Quite often when searching, estate agents will want to know that your existing property is on the market, which indicates your intent to sell, with the hope that your new purchase will go through smoothly once you find a buyer for your existing home. Once you have found that dream home, you will then go through negotiations, inspections, and the survey and conveyancing process. This is then followed by packing up the old house, coordinating the logistics of the move, and settling into the new home.

Improve: the pros

1. Full control

When you choose to improve your current home, you have the opportunity to customise the space to meet your needs and preferences. Whether it's adding an extra bedroom, expanding the kitchen, or creating a home office, the improvements can be tailored to your specific lifestyle.

2. Cost efficiency

Depending on the extent of the renovations, improving your existing home could be more cost-effective than purchasing a new one. This is particularly true if you love your current location and the property market in your area is experiencing high prices.

3. Increase in property value

Strategic improvements could significantly increase the value of your home. Renovations that increase your home's value can also lead to financial gains through revaluation. This is because an increased property value compared to the outstanding loan can attract better mortgage rates, which could lead to lower monthly mortgage payments on your next mortgage deal.

Improve: the cons

1. Construction site

Home improvement projects can be highly disruptive to daily life. Depending on the scope of the work, you may have to deal with noise, dust, and limited access to parts of your home for extended periods. For example, it’s not uncommon for people to have no access to their kitchen for a couple of weeks!

2. Uncertain costs

Renovation projects can often come with unexpected costs. They say that you never know what’s under the floorboards or wallpaper! Even with a detailed budget, unforeseen issues like structural problems or an increase in materials can disrupt the budget.

3. You can only add so much space

Depending on the size of your home, realistically there are limitations to how much space you can add. Most terraced houses will look into a loft conversion and/or rear extension, semi-detached houses can also consider a side extension and detached houses have the most potential and typically sit on a larger plot of land.

4. Value ceilings

Typically, with a renovation, you want every £1 spent to bring you more than £1 in value. With strategic improvements this is typically the case, until you hit a value ceiling. Value ceilings are typically area dependent and at this point no matter how much you spend, the value of the property won’t exceed a certain value. To find out what a value ceiling is in the area, speak to a local estate agent.

What improving looks like in practice

Home improvements can vary widely depending on individual needs and budgets. Depending on the work that needs to be done, you may need to hire an architect or structural engineer as well as a build team. Once plans are approved, obtaining necessary permits is crucial before construction begins. Homeowners may choose to stay in the house during renovations or temporarily relocate to minimise disruption, but this will come at an added cost. Throughout the project, it's good practice to regularly get updates from contractors to ensure the work stays on track and within budget.

Conclusion

The decision to move to a bigger space or improve your existing home is a significant one that involves weighing multiple factors. However - before considering either, there is a crucial step - determine what it is that you require. Writing down your needs first ensures that your decision is based on your needs, rather than you adjusting your needs at a later date to facilitate moving or improving.

In a nutshell, improving your current home allows for personalised enhancements of your existing home and can be more cost-effective, but it comes with potential construction disruptions and limitations. On the other hand, moving provides a more immediate solution to space needs and new opportunities but involves higher costs and the emotional strain of relocating.

Ultimately, the choice depends on individual circumstances, financial considerations, and personal preferences. Whether you decide to stay and improve, or move to a new home, careful planning and thoughtful decision-making can lead to a living space that better suits your evolving needs and enhances your quality of life.

To help you with this decision, you can speak to a Skipton mortgage professional to give you expert advice on this journey!