Is it better to extend or move house in 2022?
It’s not easy to decide whether to build an extension or move to a new home, as there are financial costs and complications involved with both options. Either way, you have likely reached the point where you either need to add more space or move to a property that can provide it, so here we weigh up the pros and cons of home extensions versus buying a new property.
How much will the extension cost?
When it comes to extending the lower layer of your home, depending on your location you can expect to pay around £1,500-3,500 per square metre. There are also potential planning permission costs and unexpected expenses that have to be taken into account (add another 10-20% of your existing budget to cover this).
It can’t be stressed enough how important it is to budget before going ahead with an extension. With todays volatile construction sector still being impacted by the post-Covid effects of high material prices and labour shortages, managing your budget is evermore important. If you can’t afford your ideal project, there may be alternative solutions available that an architect can design for you.
Can you afford to move home?
Buying a property is one of the biggest expenses anyone will face, so good budgeting plays an important role. To get a fair comparison, add the cost of an extension to the value of your home to see what is on the market for a similar price.
You can then assess the value you will get from extending your current home against moving to a larger property. Another solution may be to move to a new property and then add an extension to it, although similarly, you have to weigh up the financial pros and cons before going ahead.
Does an extension add value to your home?
An extension is not always the right option for a property, so before rushing into a decision take time to weigh up your options as poor construction can negatively affect the value of your home. The extension will take up existing land surrounding the house, so the value added inside may be lost through the reduced space externally.
There are some extensions that will also prove to be beneficial, such as loft, building or bedroom conversions, adding as much as 20% to the value of your home without impacting land at ground level.
Why should I extend rather than move?
According to a study conducted by TSB Bank, 2 in 5 homeowners choose to build rather than move home. They wanted to know how people felt in light of changes made to Permitted Development Rights in 2019, curious to learn how new laws would affect any plans to build an extension.
Managing Director at TEREYN Architects, Elliot Ewing commented on an article written by Cambridgeshire Live in 2021 on the effects of Covid-19 on home owner behaviour. Elliot said, “we’ve seen a huge increase in home extensions and new build homes as the market conditions and planning laws allow for greater flexibility.” Click HERE to read more.
Things have been made even easier for homeowners in the past year, with new guidelines now making it easier than ever to extend or convert their house without the need to seek planning permission. The TSB study also revealed that as many as 35% of people would remortgage their house to release equity so they could fund an extension. This is not a suitable option for everyone, however, and should be carefully thought through before proceeding.
Most people choose to extend their existing property not only for cost reasons, but also because of their emotional attachment to it. The associated costs of moving home can also be quite high and if you want to remain in the area, you may not always be able to find the same type of quality nearby.
Futureproofing your extension
If you decide to extend your home and sell at a later date to maximise its value, you will need to think about its practicality and appeal to future buyers.
Adding more bedrooms without the equivalent space downstairs can make it harder to sell. Also be wary not to over improve the house. For example, if you live on a street of small 2-bedroom properties, adding more bedrooms to your home may make it harder to recoup costs later down the line.
The idea is to strike a balance between adding the space you need to improve your day-to-day lifestyle and ensuring there is enough long-term value that makes it a worthwhile investment. Kitchen and bathroom renovations are rarely a bad idea, as is expanding the living room or converting a loft space.
Summary
These are our tips on extending your home versus moving. However, we advise all our clients that it is always best to seek professional advise from a local Estate Agent with regards to the true potential and numerical value of your home. If you know the potential or need help understanding the potential of your home, we can help get you there.
Thinking of extending your home?
If you are planning an extension project in Cambridge and want to get a better idea of the options available to, we are able to help. Book a free consultation and we’ll discuss the project in more detail to see what can be built and the potential value it could add to your home. Call us today on 07984 760 920, send us a message here or email us at info@tereynarchitects.com and we’ll get right back to you.
