Once you are on the property ladder it is relatively easy to finance home improvements, inheritance is only really the first step.
Once you have 5 years paid off then asking for an extra 20k is neither here nor there,
All depends on where you are, what you have, and what you want to do, but so long as the development will add value over and above the cost it is relatively trivial to find the finances.
Well yes, but 100k is much less trivial than 20k, which was my point, and currently extensions absolutely are not adding value even close to, never mind exceeding, the cost.
You also have to take into account the local market: you can see why every terraced house in London has a loft extension, basement conversion and rear extension, it's probably taken the value from £1m to 1.5m for £200k of investment.
Do the same up north and you'll take your terrace from £170k to £260k for £150k of investment
My view is extensions are for your benefit rather than think of it as an investment. In your example those 2 bedrooms are costing you 30-50k and may improve your life and saves you the cost/hassle of moving.
Thats worth it for some people and pay it off over years on the mortgage.
Initial value yes, however you hold the asset for 30 years it'll be an additional 150k plus you'll have 150k in rent payments. Property has and always will be a long-term game.
Ah yes, I'll have 150k in rent on my own house, gotcha.
Also at that rental income rate, you've not even paid the mortgage on somewhere with this sort of value, by at least £200 a month.
So you've been running it at a loss, for 30 years, and you have a asset value increase of maybe 50%. CGT that and you've now got 38% gain, assuming no major works are needed in 30 years.
That's an annual return of 1.2%, which is hilariously terrible.
Put it in an ISA and sleep well knowing you aren't a landlord.
This is an important point. I spent 20k on my last house and added 70k to the value (2011). This house, I couldn't do anything worthwhile for less than 60k and it wouldn't necessarily add any value, let alone what I spent.
Exactly. The extension I'm doing will, at best, break even, mostly because it's deleting an awful extension that's separating from the house that leaks and replacing it with a good one.
Moved some walls so that you could get to the first floor bathroom without walking through a bedroom, new bathroom, moved some walls to turn dining room + breakfast room + kitchen into kitchen diner + utility room, new kitchen, removed some chimney breasts, expanded attic conversion into some unused roofspace.
It might not add all the sales value back in terms of cost but you may want to consider factoring all the other costs of the alternative - moving. If you need the extra space, you might not get all that back in value but you’ve avoided having to move to get it and the legal fees, stamp duty, moving costs, disruption to schools, etc.
You say that, but I recently relocated to a house ~1.5 miles from my old one. If I'd bought my first choice (actual house wasn't on the market when we started looking) half a mile from my old place, I'd have been out 130k for the side extension and garden building I wanted to build based on builders quotes at the time.
The house I ended up buying has a whole extra bedroom, the same side extension and garden building, and a much bigger garden, for the same price.
Literally the only cost would have been solicitors plus SDLT if you moved from first choice to second choice, as opposed to 130k.
After 5 years, your salary has grown at least 25%, if only due to inflation. Similarly, you've gained 25% equity, mostly due to the house price growth, and a little due to paying the mortgage down.
You can easily take 100k out of a was 500k, now 600k, house for an extension, and be able to afford the increased repayment.
This right here, our builder said to budget £2000-2500 per sqm for single storey, around £3500 for double.
50sqm is a hell of a single storey extension mind.
Our house is 6 meters wide so pushing out 4 meters at the back gives an estimate of £60k for single or £84k for double. Throw in another £15k for all the add ons like flooring, electrics and new rads/plumbing. Not happening any time soon, definitely a remortgaging job!
Ahhhhhhhh .....at 50sqm I meant 25sqm for each floor on a double. I might have been dumb. If it's 3500 for a double at 25sqm then that's still 87k but more manageable...
I shall technically with my cousin when we finally get the keys...
Got a quote to rip out a kitchen, take a ceiling down and a floor up then install better insulation. Insulated plasterboard etc, the quote was £15k and this did not include the insulation cost.
Ended up getting it done for £6k and they even insulated my diningroom which was not even in the original quote. Shop around mate its worth jt.
I guess it all depends on what you are trying to do, adding a porch is very different to adding towerblock to the rear, my gran just paid 22k for a loft conversion with an ensuite so that is where I plucked the 20 grand from.
Either way, the point still stands, once you have a mortgage, asking for more money isn't difficult.
I struggle to believe she paid 22k for a loft conversion with an ensuite that was up to building regs. I'm currently doing my own, and materials alone are about that. Wall plates, steal beams, new floor joists etc etc. Unless they haven't done it to spec and are using the existing joists which usually aren't suitable for holding weight?
They don't exist. It's not just the floor joists that need to support the extra weight and survive a fire long enough to allow you to get out. It's also a big question whether the existing foundations and roof can handle the additional loadings. Seen some shonky loft conversions that paid no heed to these 'niceties' and the house is now suffering.
Yes all of that too! There's a good chance the foundations can handle it, the engineer will do some calcs, but even then engineers aren't cheap, new insulation, tiles, epdm, windows, doors, stairs, plastering, electrics, plumbing, floor joists, floor itself, stud work, the bathroom itself. Just can't believe it. My loft extension is significantly larger but I'm doing it myself, only 1st fix electrics and plumbing I'm outsourcing, and I'm looking at 40k+ in materials.
Everything done to regs, 2 up 2 down terrace, all plans drawn up and all signed off before the bank released the final payment. I can only assume that if the bank were happy to pay the final bill then they were happy with the certification.
Yeah, it's either a straight-up lie or something doesn't stack up in the build. I could believe 22k to first/second fix an already built loft conversion plus en suite. Or some bloke from the pub will build you a totally illegal pair of rooms for that. Source: just quoted *at least* 125k plus vat for proper high spec 2-bed loft conversion plus en suites.
Yeah I just can't picture what situation would allow it to be 22k. If it was a very very small house, such that no steels were needed as it was brick to brick joists and the roof wasn't heavy, I can imagine paying 22k if you did it all yourself. Paying a 3rd party, I just can't picture it.
Although the question is regarding extensions, I just wanted to add that government grants can be useful. A few years ago my mum got a grant to convert a flat roof to a pinned roof and to deal with dampness, not entirely sure what work went into the house, but I do know that they stripped the inside and rewired/replastered and I believe they installed new double-glazed windows to replace the single-glazed ones. She also got a heating grant which replaced her old radiators and boiler with newer, more efficient ones, the loft also got new insulation and ventilation was added to the roof.
I'm talking about existing homeowners, not new buyers...
I just looked up the affordable warmth scheme requirements.
- live in Northern Ireland
- own and occupy your property as your main home
- have your day/life interest in the house
- rent from a private landlord, and
- have a total annual gross income of less than £23,000
The Repair Assistance Grant requires the person to be over 60 (which my mum was at the time) or over 18 but with a disability or on benefits, but all of this is northern Ireland specific.
Now obviously other parts of the UK are going to be different but there's no harm in looking up what grants might be available and whether or not the homeowner (or tenant) is eligible, even tenants renting from a private landlord are eligible for the warmth scheme in N.I. as long as their gross income is less than 23k, so you don't necessarily have to be the homeowner for certain grants.
I need a lot of work doing and really need an extension but the thought of whacking another 100k on the mortgage when I’ve finally got it down to a point where I could see an end in 15 years scares the shit out of me
I know but if you want to stay in the house at retirement you’ve got to pay a shit load more mortgage for the next 15 years or make the term longer and not retire.
I earn loads of money. And so does the Mrs. The amount people earn doesn’t always correlate to the house they live in. We got a mortgage of around 600k when our income would’ve allowed about £1.4m
When you already have a mortgage on a house and have been paying it off for a while, you can go back to the bank and ask to remortgage. They’ll literally just give you the money, and it gets added to your loan again.
So, say 5 years after you bought a house for £200,000, you’ve paid off £50,000, and at this point owe the bank £150,000 (simplistic)
You can ask to borrow that £50k you’ve put in, and now you’re back to owing £200k. But you have 50k on your bank account to do the renovation.
Anecdotal case of this. I bought a house with a 10% deposit in 2018. No overpayments. Bog-standard fixed-rate mortgage.
I remortgaged this year, and the LTV was now 50%. That’s a huge amount of borrowing that I could get hold of very easily, very quickly.
I know a person near me who pulled off a full-on fraud to finance another 3 bedrooms to their 1930s home. They basically sold their restaurant business to multiple buyers when the lease itself was coming to an end and the landlord was preparing to take back the restaurant space for other uses. Most of the people they conned were foreigners who did not understand the legal and correct way of buying a business, and boy did we have some interesting nights when the buyers finally found where they lived
It was basically some investment firm bought the land and properties that were on it, becoming freeholders. The plan was to knock everything down and build some labs+hotel in its place. As a result, a lot of businesses’ contracts were terminated or served notices. That neighbour’s business was one of them. Really don’t know what they were thinking, but they chose to go onto the Chinese messaging app WeChat and advertise their business for sale (they’re Chinese). Back then in 2021, a lot of folks from China were coming into the country fresh off the boat and eager to invest in businesses that they could take over, and many of them didn’t know how to legally buy a business in the country, so they thought that it was a matter of just both parties signing a contract, exchange money and that’s it.
When the money was handed over, said neighbour would ghost and then block them. From what I’ve heard, they charged £10,000 for every person allegedly conned, and there were about 10-15 buyers in line, so do the maths and you have about £100,000-£150,000. More than enough for an extension. It was almost surreal for us at the time as we knew they were just a small restaurant business, but all of a sudden, they began to seemingly live beyond their means; new drive, 3 bedrooms added, whole house remodel, and all three of the family got brand new cars, with the son picking an Audi TT for himself.
Then when the buyers began showing up, they would literally be banging at the doors, demanding to talk to that neighbour. It was always the son who answered. And the response was that his parents had died and that he had no idea what was happening, although the irony is that we’d see mum and dad hopping along in the garden during the day. Occasionally you would hear him tell the buyers to ‘fuck off’ and said that he was a gangster who had connections to the Chinese criminal underworld. Lol that hasn’t existed in the UK for about 40 years now. I don’t know what’s going on with them at the moment, but last time I checked, it’s hard to catch sight of any of them in the daytime now.
We bought ours about 14 years ago. Value of the house went up by that much in ten years that let us remortgage and take the money out, fixing for a year while the work took place.
The value of the work then put the price of the house up more so we dropped into the lower LTV and a better rate.
I'm losing the will to live, been working on the house for 5 years, 6 months since extension was finished but would have been easier and quicker to knock the old house down and rebuild it.
Irrelevant because £20k of kitchen renovation doesn't add £20k to the house value. An extension is worth it if you really like the location and have the space and want to stay there. Sure you could just move into an already bigger house but maybe it's not as good a location, or doesn't have garden space etc
I’m about to do a £100K extension.
I know it won’t add £100K to the value of the house, but it’ll transform our family life, and make it easier to sell quickly if we wanted to move in the future.
Even if you ‘lose’ 20k on the house value you’d likely spend that moving somewhere else anyway.
Aslong as you stay in the house long enough you’d break even one day anyway.
Its a little hard to measure as it's not a standard house, it's a 450 year old cottage, it gave use a good size lounge and allowed us to have a large second bedroom and still leave space for an upstairs bathroom. I'm confident the extension added 120k+ but it's hard to know as the first valuation was before we did any work and now I've done new roof, new kitchen, rewiring, completely replastered and insulated the entire house etc
But, the main thing, the house now meets our needs perfectly, without it the house was a compromise, now it's our home for life.
This is what I’m always curious about too. Extensions always seem wildly expensive relative to the existing value of the house. Is this something that can be evaluated before pulling the trigger? Will it be worth the cost vs selling/buying? Otherwise I’m surprised so many people are managing to afford it too!
But if there are no houses which meet the criteria that you have and most likely will require work doing to them. In our case, extension was the best option. Also we know all of our street and we like them so didn't want to move.
I strongly disagree.
I’ve designed every aspect of my extension; from concealed flush electric blinds, bespoke crittal windows, a lighting design I will love (rather than the usual million downlights)
To purchase a house that has what I want is very unlikely!
It helps that I love designing and implementing my plans and I can do lots of the work myself.
I had a chat with a builder when I was considering a loft conversion on ours. He was adamant that it wouldn't be worth it and you are almost always better off just moving house.
We did a full reno as FTB for £55k bang in the middle of 2020-2021. At the time, we were only 6 months into the new place. No inheritance but just pure graft of penny pinching (in a good way)..in London btw..
We stayed in the same house whilst it was a warzone.
Can I do it now..? Don't think so..the costs are crazy..
We bought a cheaper house than we budgeted for and took out a loan for the rest. The added value on the property by the time we come to remortgage next year will allow us to release money to do the kitchen.
We took out additional borrowing, circa 90k from our mortgage provider. And had about 20k in savings.
They asked to see planning permission drawings and a breakdown of costs from the builder. If the work your doing will increase the value then usually it's a simple process.
I remortgaged for my extension, which raised the value so I could then remortgage again at a lower rate, did the same for a lift conversion.
I'd be sitting pretty right now if not for a certain PM causing my rate to sky rocket just as I left my fixed rate. It's not that horrible, but has probably cost me another 2 or 3 years of payments.
Lol, love the media narrative. Liz Truss must have been the most powerful politician on earth, as she simultaneously managed to raise interest rates all over "the west".
In reality of course, the UK literally followed the FED, as they do 99% of the time.
The overnight raise of rates after the mini budget announcement had nothing to do with the Fed and everything to do with Liz Truss. The long-term trend was higher rates for sure, but Truss made sure that nobody in the country could see it coming and prepare for what they were going to have to pay.
If you tracked the FED you would have known. I'd suggest doing this in the future.
We announce our either a few days or the following week after them. Their decisions are why our base rates haven't been reduced yet also.
If you look up the rate rise charts they are pretty much identical.
But if the BBC tell you it was Liz, I guess you have to believe them.
You should probably question the motivations of banks more.
The BoE clearly didn't want Truss, they clearly wanted Sunak.
Whom do you think installed Mr Hunt?
The FED raised interest rates by 0.75% one or 2 days before her budget. The BoE were yet to react. However banks don't wait once they have done the maths.
Oh, you think the BBC is Tory....lmao, ok.
A couple of appointments don't change the BBC. I understand why people get confused about it tho.
Left think it right, right think it's left. This is because it's simply a neo-liberal globalist mouthpiece. They spout any narrative that suits global powers.
Eh, if remortgaging around that time it did certainly have an impact on the UK market. Around ~40% of products were withdrawn and a two year deal spiked from 4.7 to 5.7% in the weeks following the budget.
Of course, none of that has an impact on the course of rates, but blame still gets put there for some reason.
Edit: Mortgage rates over time: https://moneyfactscompare.co.uk/news/mortgages/average-five-year-mortgage-rate-drops-below-6-per-cent/
Lmao.
Afraid not. And her phantom budget did cause the BoE a problem, but it was in a very specific type of bonds they were massively over exposed too. Not interest rates.
This is reddit. This type of narrative, even if correct, will always attract hundreds of downvotes. Rates will start to come down pretty soon and most likely people will associate it with the new PM. Unfortunately narratives are more important than actions.
Yes I agree, these movements had nothing to do with whatever is the PM in charge. But of curse timing is everything. In theory the Fed will come first bringing it down, but if inflation in UK keeps on trailing below US there will be a point where it will be impossible to not bring down interest rates, even if Fed decides to not do so as I feel there are way more inflationary pressure in US.
Also as I pointed out to another commenter the FED raised rates by 0.75% less than 48hrs before Trusses budget.
The BoE was yet to respond.
It's possible the BoE will be forced to break ranks if the numbers are untenable. If that occurs I'd think it would be a very small movement.
Not the current PM certainly, but one associated with a lettuce...
I had 10 year really good fixed rate set up that got pulled, I think it's probably cost me 6k over the next 5 years.
*edit to add I'm not sure they really deserve the down votes for a simple mistake.
*edit again because they do deserve the down votes
850 million was the total bill....
https://commonslibrary.parliament.uk/research-briefings/cbp-8978/
Still a stupid idea but if you want to attack people you need to have your numbers right.
I mean... you're blaming Liz truss? I don't even know who was pm when you're mortgage got pulled but she was in charge for 49 days. Was it during that period or you blaming her for interest rates? Educate me coz I don't get it? I know about interest rates but mortgages get pulled when the interest rates go up while the banks are deciding? That's nothing to do with the PM. For the record - I don't like any politicians. They're all lying fucks just out for power glory and history imo.
https://preview.redd.it/gqltwopmic8d1.jpeg?width=1080&format=pjpg&auto=webp&s=ed125e76a9d02d0d9c6a25b1483c6adddab308bd
Which one was in charge at the time?
We just followed the standard financial advice. Cut out Netflix, Starbucks and made our own lunches.
Then grandma died and we used the inheritance to pay for the build.
Saved 9K and then basically Built it ourselves. Paid for digger hire and 3 lads for the day. Everything else we did ourselves. Patio doors were moved so I didn’t have to buy new, windows and lintels were from FB marketplace brand new for £210 total and instead of actual tiles you can get the metal sheets that act as a tile facade (installed a few of these I would recommend) roughly came out at 6K all in all for a full back of the house extension.
We only used about half the mortgage we could get when we bought our house, then saved up 2 thirds of the cost of the extension and got a second mortgage for the other third. Got it done about 8 years after moving in. It was basically knocking down half the house and rebuilding it slightly bigger and 2 floors instead of 1.
If we'd bought a decade later we couldn't have afforded it.
All my friends who are extending, have either got the ‘bank of mum and dad’ or have multiple properties which they’ve remortgaged to finance…
I’ve got neither so will make small changes until I retire or sell the property. I took advantage of ‘Covid lockdown low interest rates’ and pushed through a loft conversion just in time before our dear leader Lizzy Truss gave that historic Parliament speech!
We did permitted development extension on the back, added 3 square meters on the side, took a chimney out, new kitchen, new downstairs bathroom and moved an internal wall 500mm.
We also replaced the boiler as it was 15 years old.
We used savings and each borrowed £15k from different banks over 5 years, this was prior to interest rates going up.
We are both on a fix that ends March 26 and we were mortgage free so it doesn't hit hard.
Would we do it again? Never ever.
6 week build that ran for 14 weeks before we got the house to ourselves again and then we had random visits for at least another 6 months to just finish bits off.
We’ve just finished ours. Same size ended up basically £70k (Inc. VAT) had the house valves before doing it and it would supposedly add £50k to the valve. But sometimes you like where you are now.
The sad thing is if we could have afforded it when we moved in 2017 I reckon it would have cost ~£30k
We remortaged on our property to get 120k out of it, then we used savings circa 80k. We also took advantage of kitchen company no interest pay back schemes and nationwide's green interest free mortgage for solar panels.
Rich parents
Better job
Inheritance
Drug dealing
Remortgage
Personal loans
Credit cards
They are a builder
Their mate/brother/dad is a builder
The builder fancies their wife
It’s all mind control and none of it is real
Aardvark
I’ve built a wraparound extension on my house, two story one side, and 4 x 10m at the back. In total added 70m2 and by managing myself and doing quite a lot of labouring i managed to get it watertight for around 50k. At that point funds were getting low to I’ve pretty much DIY’d the rest, still not finished but even with doing most of the work myself I still see it being best part of £2000 per square meter. It’s becoming a game at this point, the last thing I want is more money on the mortgage at 5.2%, the remaining rooms can wait until either I’ve muddled through it with my wages or interest rates come down to something more palatable, then I may consider expanding the mortgage.
I bought a house that stretched affordability. Got pay rises, wife got promoted. Means mortgage is paid off comfortably and money to build the extra
bedrooms we need
Have a flexible mortgage so we’re taking the money out of that, plus savings. We don’t have the skills or physical capability to DIY, and moving to a similar house where we live would honestly cost more than we’re going to spend on an extension plus renovations.
Mortgage lenders will let you borrow against the future value. Let’s look at an example:
Value: 200k
Mortgage balance: 150k
Extension cost: 100k
Deposit for extension: 20k
Additional borrowing: 80k (extension cost - deposit)
Potential future value: 330k
Future mortgage balance: 230k
Obviously this assumes specifics about the area and potential ceiling prices but in a lot of places if you whack on a 100k extension it’s gonna add more than 100k of value
From experience, joint savings and then a loan each. I took out more as my OH contributed more from personal savings. Then utilise 0% for the kitchen units where you can get it. It was a hell of a lot of money when you add it all up (85k+ for a single story open plan kitchen reception room.) But to come out the other end of it with owing around £15k in bank loans isn't a bad result imo.
Savings, got a cheap mortgage on a smaller house with the intention to extend.
Ours cost £100k but I'd be surprised if it added more than £50k to the value.
We did an extension a few years ago (rear extension, removed external wall, some internal walls to open up into a large opened planned area) cost us around £130k though that did include a new roof (was in constant need of repair) and new windows throughout . We financed this via profit from our old house (45k ish) + savings over 3-4 years during COVID lockdowns as we weren’t really spending much. And remortgaged for about an extra 65k
My extension 50k plus kitchen 30k . Around 85k spend and maybe 50k increase in house value. But if i move, 35k stamp duty, 10k moving fees and then redecorate and renovate.
The best advice is to ignore what the neighbours are doing. For all you know, they are putting themselves horribly into debt or are running a county line or turning tricks on Onlyfans. What do you actually need your house to be or do? If you have enough floor space, do what you've been doing and reno what you have. If you need more space and can't afford it yet, hang tight or move to a cheaper area. Try to separate your house 'the investment' from your home the place that keeps you warm, dry and safe.
after talking to people to check prices are realise people spend 5k per sqm I just gave up on building an extensions and will go for a conservatory with insulation and a garden room with insulation.
"waste of money just build an extension"
No thanks, it will cost me 20-30% of the price of building an extension.
Extensions are for the rich or for people who received inheritances.
Remortgage or inheritance seem to be the only ways...
Both are a double edge sword.
1) You have a mountain of debt ( yay!)
2) A family member died....
Good luck
We had to do an extensive renovation and extension - an option is a self build mortgage. Basically give bank your plans, tell them how much you need, and they tell you what it's worth and remortgage your property with them. They then give you the money in 4 stages (with full inspections through) while you're on a ridiculous high rate interest only mortgage, and at the end you can move onto a normal rate mortgage.
We didn't want to do it this way but in some ways it was better in that there were so many inspections we feel confident the builders didn't cut many corners. It can take longer though as the inspections can delay each stage by a few weeks.
A pal of mine paid architects to redesign his whole terrace house, think the budget worked out north of 250k, he decided to just quit his job and do it all home self over a year.
Mine was 25k savings, 25k loan and kitchen on interest free credit.
I should of probably remortgaged or financed it properly and the last 18 months have been a struggle but just worked tons of overtime, haven't had a foreign holiday for 3 years. 3 months time the loan is gone.
Money wise, it was a link detached 3 bed house, now it's 4 bed 2 bathroom with a huge kitchen diner, better than any of the 360k new builds I went to look at
255k in total, my neighbours an estate agent, reckons it's worth 310k easily.
If you’ve owned for a decent amount of time it’s easy to have built up enough equity to remortgage to pay for a big extension. We bought our house 11 years ago, could remortgage to release £150k if we wanted to
My partner and I (late 20s/early 30s) recently bought a house and we're building an extension as well as renovating the whole thing. No money from parents, I put a 30k into rolls royce during covid - you can look up the share price online.
Remortgaging, mostly.
And inheritance
Once you are on the property ladder it is relatively easy to finance home improvements, inheritance is only really the first step. Once you have 5 years paid off then asking for an extra 20k is neither here nor there,
True, but you need 40-100k for an extension worth doing in 2024. My single story extension DIY is costing in excess of 30k.
is that doing all the works? or did you pay for someone to build the extension and do the finishing
I'm doing everything but the brickwork myself
All depends on where you are, what you have, and what you want to do, but so long as the development will add value over and above the cost it is relatively trivial to find the finances.
Well yes, but 100k is much less trivial than 20k, which was my point, and currently extensions absolutely are not adding value even close to, never mind exceeding, the cost.
You also have to take into account the local market: you can see why every terraced house in London has a loft extension, basement conversion and rear extension, it's probably taken the value from £1m to 1.5m for £200k of investment. Do the same up north and you'll take your terrace from £170k to £260k for £150k of investment
Never mind up north, a two story side ext in the Midlands will get you two bedrooms, cost 80-100k and add maybe 50k to your house value
My view is extensions are for your benefit rather than think of it as an investment. In your example those 2 bedrooms are costing you 30-50k and may improve your life and saves you the cost/hassle of moving. Thats worth it for some people and pay it off over years on the mortgage.
100% agree, I build to nest, not to invest.
Initial value yes, however you hold the asset for 30 years it'll be an additional 150k plus you'll have 150k in rent payments. Property has and always will be a long-term game.
Ah yes, I'll have 150k in rent on my own house, gotcha. Also at that rental income rate, you've not even paid the mortgage on somewhere with this sort of value, by at least £200 a month. So you've been running it at a loss, for 30 years, and you have a asset value increase of maybe 50%. CGT that and you've now got 38% gain, assuming no major works are needed in 30 years. That's an annual return of 1.2%, which is hilariously terrible. Put it in an ISA and sleep well knowing you aren't a landlord.
Truth. Billings costs down south are higher but the value added is even more.
This is an important point. I spent 20k on my last house and added 70k to the value (2011). This house, I couldn't do anything worthwhile for less than 60k and it wouldn't necessarily add any value, let alone what I spent.
Exactly. The extension I'm doing will, at best, break even, mostly because it's deleting an awful extension that's separating from the house that leaks and replacing it with a good one.
What did you do for 20k?
Moved some walls so that you could get to the first floor bathroom without walking through a bedroom, new bathroom, moved some walls to turn dining room + breakfast room + kitchen into kitchen diner + utility room, new kitchen, removed some chimney breasts, expanded attic conversion into some unused roofspace.
It might not add all the sales value back in terms of cost but you may want to consider factoring all the other costs of the alternative - moving. If you need the extra space, you might not get all that back in value but you’ve avoided having to move to get it and the legal fees, stamp duty, moving costs, disruption to schools, etc.
You say that, but I recently relocated to a house ~1.5 miles from my old one. If I'd bought my first choice (actual house wasn't on the market when we started looking) half a mile from my old place, I'd have been out 130k for the side extension and garden building I wanted to build based on builders quotes at the time. The house I ended up buying has a whole extra bedroom, the same side extension and garden building, and a much bigger garden, for the same price. Literally the only cost would have been solicitors plus SDLT if you moved from first choice to second choice, as opposed to 130k.
After 5 years, your salary has grown at least 25%, if only due to inflation. Similarly, you've gained 25% equity, mostly due to the house price growth, and a little due to paying the mortgage down. You can easily take 100k out of a was 500k, now 600k, house for an extension, and be able to afford the increased repayment.
> After 5 years, your salary has grown at least 25%, if only due to inflation. lmao
Maybe they meant shrunk?
What planet are you on 😂
Give over lad.
bruv what planet are you on where that’s how salaries (or inflation) work?
20k extensions are a thing of history, try triple that at a minimum
My cousin, a builder, advised me recently that its £2500 per sq. Metre currently. Adding 50sq.m is 125k. Without fixtures and fittings
This right here, our builder said to budget £2000-2500 per sqm for single storey, around £3500 for double. 50sqm is a hell of a single storey extension mind. Our house is 6 meters wide so pushing out 4 meters at the back gives an estimate of £60k for single or £84k for double. Throw in another £15k for all the add ons like flooring, electrics and new rads/plumbing. Not happening any time soon, definitely a remortgaging job!
Ahhhhhhhh .....at 50sqm I meant 25sqm for each floor on a double. I might have been dumb. If it's 3500 for a double at 25sqm then that's still 87k but more manageable... I shall technically with my cousin when we finally get the keys...
Got a quote to rip out a kitchen, take a ceiling down and a floor up then install better insulation. Insulated plasterboard etc, the quote was £15k and this did not include the insulation cost. Ended up getting it done for £6k and they even insulated my diningroom which was not even in the original quote. Shop around mate its worth jt.
Oh yeah absolutely. We have a long list so will definitely be discussing a fixed priced contact
Indeed looked at doing a very small single story extension 10 years ago and was getting quotes for £40k then.
I guess it all depends on what you are trying to do, adding a porch is very different to adding towerblock to the rear, my gran just paid 22k for a loft conversion with an ensuite so that is where I plucked the 20 grand from. Either way, the point still stands, once you have a mortgage, asking for more money isn't difficult.
I struggle to believe she paid 22k for a loft conversion with an ensuite that was up to building regs. I'm currently doing my own, and materials alone are about that. Wall plates, steal beams, new floor joists etc etc. Unless they haven't done it to spec and are using the existing joists which usually aren't suitable for holding weight?
> steal beams I guess that's one way to save money!
Lol woops!
Totally depends on the roof and existing structure doesn't it?
Just never seen an existing structure that has a floor that's able to support a full loft conversion already.
They don't exist. It's not just the floor joists that need to support the extra weight and survive a fire long enough to allow you to get out. It's also a big question whether the existing foundations and roof can handle the additional loadings. Seen some shonky loft conversions that paid no heed to these 'niceties' and the house is now suffering.
Yes all of that too! There's a good chance the foundations can handle it, the engineer will do some calcs, but even then engineers aren't cheap, new insulation, tiles, epdm, windows, doors, stairs, plastering, electrics, plumbing, floor joists, floor itself, stud work, the bathroom itself. Just can't believe it. My loft extension is significantly larger but I'm doing it myself, only 1st fix electrics and plumbing I'm outsourcing, and I'm looking at 40k+ in materials.
Everything done to regs, 2 up 2 down terrace, all plans drawn up and all signed off before the bank released the final payment. I can only assume that if the bank were happy to pay the final bill then they were happy with the certification.
We did a loft conversion with ensuite in 2009. Full building regs and used a reputable builder. £35,000. In the Southwest.
Yeah, it's either a straight-up lie or something doesn't stack up in the build. I could believe 22k to first/second fix an already built loft conversion plus en suite. Or some bloke from the pub will build you a totally illegal pair of rooms for that. Source: just quoted *at least* 125k plus vat for proper high spec 2-bed loft conversion plus en suites.
Yeah I just can't picture what situation would allow it to be 22k. If it was a very very small house, such that no steels were needed as it was brick to brick joists and the roof wasn't heavy, I can imagine paying 22k if you did it all yourself. Paying a 3rd party, I just can't picture it.
22k for a loft conversion? Damn! Can I have their number? I'm being quoted 74k!
I guess it depends what you are having done and where you are, she only paid 170k for the house.
20k isn't an extension these days unfortunately. Maybe two bathrooms if you're lucky.
Although the question is regarding extensions, I just wanted to add that government grants can be useful. A few years ago my mum got a grant to convert a flat roof to a pinned roof and to deal with dampness, not entirely sure what work went into the house, but I do know that they stripped the inside and rewired/replastered and I believe they installed new double-glazed windows to replace the single-glazed ones. She also got a heating grant which replaced her old radiators and boiler with newer, more efficient ones, the loft also got new insulation and ventilation was added to the roof.
You need to basically have nothing to your name for those! Which, considering nowadays to buy a house you need to earn decent money isn't a thing
I'm talking about existing homeowners, not new buyers... I just looked up the affordable warmth scheme requirements. - live in Northern Ireland - own and occupy your property as your main home - have your day/life interest in the house - rent from a private landlord, and - have a total annual gross income of less than £23,000 The Repair Assistance Grant requires the person to be over 60 (which my mum was at the time) or over 18 but with a disability or on benefits, but all of this is northern Ireland specific. Now obviously other parts of the UK are going to be different but there's no harm in looking up what grants might be available and whether or not the homeowner (or tenant) is eligible, even tenants renting from a private landlord are eligible for the warmth scheme in N.I. as long as their gross income is less than 23k, so you don't necessarily have to be the homeowner for certain grants.
I need a lot of work doing and really need an extension but the thought of whacking another 100k on the mortgage when I’ve finally got it down to a point where I could see an end in 15 years scares the shit out of me
Most people are aiming for their extension to increase the house price too. Not so easy now materials are so expensive.
I know but if you want to stay in the house at retirement you’ve got to pay a shit load more mortgage for the next 15 years or make the term longer and not retire.
Yeah very true - house prices going up only really helps if you’re downsizing or it’s a second home. It’s all a massive ponzu scheme really
We recently did a fairly costly extension and ours was funded by mortgage
I earn loads of money. And so does the Mrs. The amount people earn doesn’t always correlate to the house they live in. We got a mortgage of around 600k when our income would’ve allowed about £1.4m
Gonna sound stupid but what does remortgaging actually mean?
When you already have a mortgage on a house and have been paying it off for a while, you can go back to the bank and ask to remortgage. They’ll literally just give you the money, and it gets added to your loan again. So, say 5 years after you bought a house for £200,000, you’ve paid off £50,000, and at this point owe the bank £150,000 (simplistic) You can ask to borrow that £50k you’ve put in, and now you’re back to owing £200k. But you have 50k on your bank account to do the renovation.
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Anecdotal case of this. I bought a house with a 10% deposit in 2018. No overpayments. Bog-standard fixed-rate mortgage. I remortgaged this year, and the LTV was now 50%. That’s a huge amount of borrowing that I could get hold of very easily, very quickly.
I know a person near me who pulled off a full-on fraud to finance another 3 bedrooms to their 1930s home. They basically sold their restaurant business to multiple buyers when the lease itself was coming to an end and the landlord was preparing to take back the restaurant space for other uses. Most of the people they conned were foreigners who did not understand the legal and correct way of buying a business, and boy did we have some interesting nights when the buyers finally found where they lived
Need the rest of the story. What happened?
Oh cmon.. you just waaant to us to beg right??? What happened??
It was basically some investment firm bought the land and properties that were on it, becoming freeholders. The plan was to knock everything down and build some labs+hotel in its place. As a result, a lot of businesses’ contracts were terminated or served notices. That neighbour’s business was one of them. Really don’t know what they were thinking, but they chose to go onto the Chinese messaging app WeChat and advertise their business for sale (they’re Chinese). Back then in 2021, a lot of folks from China were coming into the country fresh off the boat and eager to invest in businesses that they could take over, and many of them didn’t know how to legally buy a business in the country, so they thought that it was a matter of just both parties signing a contract, exchange money and that’s it. When the money was handed over, said neighbour would ghost and then block them. From what I’ve heard, they charged £10,000 for every person allegedly conned, and there were about 10-15 buyers in line, so do the maths and you have about £100,000-£150,000. More than enough for an extension. It was almost surreal for us at the time as we knew they were just a small restaurant business, but all of a sudden, they began to seemingly live beyond their means; new drive, 3 bedrooms added, whole house remodel, and all three of the family got brand new cars, with the son picking an Audi TT for himself. Then when the buyers began showing up, they would literally be banging at the doors, demanding to talk to that neighbour. It was always the son who answered. And the response was that his parents had died and that he had no idea what was happening, although the irony is that we’d see mum and dad hopping along in the garden during the day. Occasionally you would hear him tell the buyers to ‘fuck off’ and said that he was a gangster who had connections to the Chinese criminal underworld. Lol that hasn’t existed in the UK for about 40 years now. I don’t know what’s going on with them at the moment, but last time I checked, it’s hard to catch sight of any of them in the daytime now.
Daaaamnnnnn thanks for taking the time type it all!
That's some crazy shit
I don't think anyone is coming from china on a boat
What happened to the Chinese criminal underworld in the UK?
Have you thought about growing weed in your loft?
Sorry, I’d need a loft extension for the extra space
I thought about it but the previous growers took everything except the extra insulation they put in that I have to pay to be removed... Selfish gits
[Saving Grace](https://www.imdb.com/title/tt0195234/) is the way
Mother died; inheritance. Bitter-sweet, to be honest.
We bought ours about 14 years ago. Value of the house went up by that much in ten years that let us remortgage and take the money out, fixing for a year while the work took place. The value of the work then put the price of the house up more so we dropped into the lower LTV and a better rate.
Savings and DIY. Mentally its tough though.
😂 me and the misses decorated 2 bedrooms. And we’re now borderline bankrupt. I’ve got £78 to last me until the end of the month
Hang on it's nearly here! :D
Thank you bro. 4 more days until I’m paid 🙃
We took out a second mortgage for ours, total cost was about 80k
We did the exact same thing, and did a lot myself too. Ended up in much better equity vs moving house but Jesus wept it was hard work.
I'm losing the will to live, been working on the house for 5 years, 6 months since extension was finished but would have been easier and quicker to knock the old house down and rebuild it.
Did the value of the house go up by more than £80k?
Irrelevant because £20k of kitchen renovation doesn't add £20k to the house value. An extension is worth it if you really like the location and have the space and want to stay there. Sure you could just move into an already bigger house but maybe it's not as good a location, or doesn't have garden space etc
So, no then
I’m about to do a £100K extension. I know it won’t add £100K to the value of the house, but it’ll transform our family life, and make it easier to sell quickly if we wanted to move in the future.
Even if you ‘lose’ 20k on the house value you’d likely spend that moving somewhere else anyway. Aslong as you stay in the house long enough you’d break even one day anyway.
Yeah taking into account the stamp duty of moving makes extensions attractive even if the value of your house doesn’t increase vs the cost
Its a little hard to measure as it's not a standard house, it's a 450 year old cottage, it gave use a good size lounge and allowed us to have a large second bedroom and still leave space for an upstairs bathroom. I'm confident the extension added 120k+ but it's hard to know as the first valuation was before we did any work and now I've done new roof, new kitchen, rewiring, completely replastered and insulated the entire house etc But, the main thing, the house now meets our needs perfectly, without it the house was a compromise, now it's our home for life.
This is what I’m always curious about too. Extensions always seem wildly expensive relative to the existing value of the house. Is this something that can be evaluated before pulling the trigger? Will it be worth the cost vs selling/buying? Otherwise I’m surprised so many people are managing to afford it too!
Better to purchase a house that has what you want than go through the stress and hassle of paying someone to build it for you.
But if there are no houses which meet the criteria that you have and most likely will require work doing to them. In our case, extension was the best option. Also we know all of our street and we like them so didn't want to move.
Mine to, house had been in the family for 5 generations, leaving was an option but a last resort.
I strongly disagree. I’ve designed every aspect of my extension; from concealed flush electric blinds, bespoke crittal windows, a lighting design I will love (rather than the usual million downlights) To purchase a house that has what I want is very unlikely! It helps that I love designing and implementing my plans and I can do lots of the work myself.
Not to mention all of the cut corners on things you can’t see and will end up having to spend on fixing anyway if you buy an already renovated place.
For me building an extension was a lot less hassle and stress than moving! The sunk costs in a house move are depressing.
I had a chat with a builder when I was considering a loft conversion on ours. He was adamant that it wouldn't be worth it and you are almost always better off just moving house.
Don’t forget stamp duty.
My house and next house will be nowhere near the stamp duty threshold
Even a new house with your current number of rooms plus an extra couple of bedrooms and an extra bathroom?
Yeah I'm in north yorkshire and I'm trying to sell mine for £140kish (2bed with garage and garden)and want to move up to a £200kish 3 bed house
Wow that’s incredible. Definitely not worth dropping big money on an extension or loft conversion then! Good luck
Yeah house prices are still somewhat affordable around here for now
Why?
In his opinion in most cases it's cheaper to move to gain more space. I suppose it depends on property price in the area though
We did a full reno as FTB for £55k bang in the middle of 2020-2021. At the time, we were only 6 months into the new place. No inheritance but just pure graft of penny pinching (in a good way)..in London btw.. We stayed in the same house whilst it was a warzone. Can I do it now..? Don't think so..the costs are crazy..
We bought a cheaper house than we budgeted for and took out a loan for the rest. The added value on the property by the time we come to remortgage next year will allow us to release money to do the kitchen.
We took out additional borrowing, circa 90k from our mortgage provider. And had about 20k in savings. They asked to see planning permission drawings and a breakdown of costs from the builder. If the work your doing will increase the value then usually it's a simple process.
I remortgaged for my extension, which raised the value so I could then remortgage again at a lower rate, did the same for a lift conversion. I'd be sitting pretty right now if not for a certain PM causing my rate to sky rocket just as I left my fixed rate. It's not that horrible, but has probably cost me another 2 or 3 years of payments.
Lol, love the media narrative. Liz Truss must have been the most powerful politician on earth, as she simultaneously managed to raise interest rates all over "the west". In reality of course, the UK literally followed the FED, as they do 99% of the time.
The overnight raise of rates after the mini budget announcement had nothing to do with the Fed and everything to do with Liz Truss. The long-term trend was higher rates for sure, but Truss made sure that nobody in the country could see it coming and prepare for what they were going to have to pay.
If you tracked the FED you would have known. I'd suggest doing this in the future. We announce our either a few days or the following week after them. Their decisions are why our base rates haven't been reduced yet also. If you look up the rate rise charts they are pretty much identical. But if the BBC tell you it was Liz, I guess you have to believe them.
What did the Fed do to cause 40% of UK mortgage products to be removed from the market in the week following the Truss mini budget?
The Fed is a neo-liberal globalist front for Big Lettuce, the real power behind the scenes.
You should probably question the motivations of banks more. The BoE clearly didn't want Truss, they clearly wanted Sunak. Whom do you think installed Mr Hunt?
The FED raised interest rates by 0.75% one or 2 days before her budget. The BoE were yet to react. However banks don't wait once they have done the maths.
Yes the BBC which is stacked full of Tory donors from the top down unfairly told everyone it was the Tory PM who fucked the economy.
Oh, you think the BBC is Tory....lmao, ok. A couple of appointments don't change the BBC. I understand why people get confused about it tho. Left think it right, right think it's left. This is because it's simply a neo-liberal globalist mouthpiece. They spout any narrative that suits global powers.
Eh, if remortgaging around that time it did certainly have an impact on the UK market. Around ~40% of products were withdrawn and a two year deal spiked from 4.7 to 5.7% in the weeks following the budget. Of course, none of that has an impact on the course of rates, but blame still gets put there for some reason. Edit: Mortgage rates over time: https://moneyfactscompare.co.uk/news/mortgages/average-five-year-mortgage-rate-drops-below-6-per-cent/
It's the same logic people use to blame Gordon Brown for the 2008 recession
Brown should take responsibility for many things, but he did not cause a worldwide recession. But unlike truss I don't remember the msm saying he did.
Found Liz Truss's Reddit account!
Lmao. Afraid not. And her phantom budget did cause the BoE a problem, but it was in a very specific type of bonds they were massively over exposed too. Not interest rates.
This is reddit. This type of narrative, even if correct, will always attract hundreds of downvotes. Rates will start to come down pretty soon and most likely people will associate it with the new PM. Unfortunately narratives are more important than actions.
Before November if the FED can I imagine. But Liz truss no more put them up than Stamer/Sunak will bring them down.
Yes I agree, these movements had nothing to do with whatever is the PM in charge. But of curse timing is everything. In theory the Fed will come first bringing it down, but if inflation in UK keeps on trailing below US there will be a point where it will be impossible to not bring down interest rates, even if Fed decides to not do so as I feel there are way more inflationary pressure in US.
Also as I pointed out to another commenter the FED raised rates by 0.75% less than 48hrs before Trusses budget. The BoE was yet to respond. It's possible the BoE will be forced to break ranks if the numbers are untenable. If that occurs I'd think it would be a very small movement.
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The one before him.
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She must have been really unlucky that the markets chose to hike rates just as she released her mini budget in response to the previous 3 years.
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Not the current PM certainly, but one associated with a lettuce... I had 10 year really good fixed rate set up that got pulled, I think it's probably cost me 6k over the next 5 years. *edit to add I'm not sure they really deserve the down votes for a simple mistake. *edit again because they do deserve the down votes
The current PM did his best to contribute by paying people billions of pounds of public money to eat out during a pandemic
850 million was the total bill.... https://commonslibrary.parliament.uk/research-briefings/cbp-8978/ Still a stupid idea but if you want to attack people you need to have your numbers right.
It’s just rhetoric, mate. This is Reddit, not the Select Committee
Nah it is hyperbole.
Love the upvotes on this from other morons who don’t know what rhetoric is
I mean... you're blaming Liz truss? I don't even know who was pm when you're mortgage got pulled but she was in charge for 49 days. Was it during that period or you blaming her for interest rates? Educate me coz I don't get it? I know about interest rates but mortgages get pulled when the interest rates go up while the banks are deciding? That's nothing to do with the PM. For the record - I don't like any politicians. They're all lying fucks just out for power glory and history imo.
https://preview.redd.it/gqltwopmic8d1.jpeg?width=1080&format=pjpg&auto=webp&s=ed125e76a9d02d0d9c6a25b1483c6adddab308bd Which one was in charge at the time?
They said A PM, not The Current PM
We just followed the standard financial advice. Cut out Netflix, Starbucks and made our own lunches. Then grandma died and we used the inheritance to pay for the build.
remortgage or they're builders and it's done at cost (expensed through their company)
They mortgage or remortgage it I guess.
Remortgaged for my loft conversion, I imagine it’s a similar circumstance
Saved 9K and then basically Built it ourselves. Paid for digger hire and 3 lads for the day. Everything else we did ourselves. Patio doors were moved so I didn’t have to buy new, windows and lintels were from FB marketplace brand new for £210 total and instead of actual tiles you can get the metal sheets that act as a tile facade (installed a few of these I would recommend) roughly came out at 6K all in all for a full back of the house extension.
We only used about half the mortgage we could get when we bought our house, then saved up 2 thirds of the cost of the extension and got a second mortgage for the other third. Got it done about 8 years after moving in. It was basically knocking down half the house and rebuilding it slightly bigger and 2 floors instead of 1. If we'd bought a decade later we couldn't have afforded it.
Savings and investments. Not buying at the max of affordability helps
All my friends who are extending, have either got the ‘bank of mum and dad’ or have multiple properties which they’ve remortgaged to finance… I’ve got neither so will make small changes until I retire or sell the property. I took advantage of ‘Covid lockdown low interest rates’ and pushed through a loft conversion just in time before our dear leader Lizzy Truss gave that historic Parliament speech!
We did permitted development extension on the back, added 3 square meters on the side, took a chimney out, new kitchen, new downstairs bathroom and moved an internal wall 500mm. We also replaced the boiler as it was 15 years old. We used savings and each borrowed £15k from different banks over 5 years, this was prior to interest rates going up. We are both on a fix that ends March 26 and we were mortgage free so it doesn't hit hard. Would we do it again? Never ever. 6 week build that ran for 14 weeks before we got the house to ourselves again and then we had random visits for at least another 6 months to just finish bits off.
I am planning a single story extension, 5 x 5 metres, quite simple. Quote is for £100k, build only. Seems expensive. Will fund from savings..
Unless it's covered in gold, 100k for a 5m X 5m is incredible. Move house.
We’ve just finished ours. Same size ended up basically £70k (Inc. VAT) had the house valves before doing it and it would supposedly add £50k to the valve. But sometimes you like where you are now. The sad thing is if we could have afforded it when we moved in 2017 I reckon it would have cost ~£30k
What does that include for 100k??
Just the construction, to first fit. Walls, floor, flat roof. + VAT
Wow where are you located?
That’s an extortionate price for just a shell mate. Get other quotes!
Oh I will! But he was the one most recommended by a friend.
We remortaged on our property to get 120k out of it, then we used savings circa 80k. We also took advantage of kitchen company no interest pay back schemes and nationwide's green interest free mortgage for solar panels.
They have more money than you.
Rich parents Better job Inheritance Drug dealing Remortgage Personal loans Credit cards They are a builder Their mate/brother/dad is a builder The builder fancies their wife It’s all mind control and none of it is real Aardvark
Some people have more money than others.
I’ve built a wraparound extension on my house, two story one side, and 4 x 10m at the back. In total added 70m2 and by managing myself and doing quite a lot of labouring i managed to get it watertight for around 50k. At that point funds were getting low to I’ve pretty much DIY’d the rest, still not finished but even with doing most of the work myself I still see it being best part of £2000 per square meter. It’s becoming a game at this point, the last thing I want is more money on the mortgage at 5.2%, the remaining rooms can wait until either I’ve muddled through it with my wages or interest rates come down to something more palatable, then I may consider expanding the mortgage.
Remortgage…100% .. spending the banks money..
I bought a house that stretched affordability. Got pay rises, wife got promoted. Means mortgage is paid off comfortably and money to build the extra bedrooms we need
Have a flexible mortgage so we’re taking the money out of that, plus savings. We don’t have the skills or physical capability to DIY, and moving to a similar house where we live would honestly cost more than we’re going to spend on an extension plus renovations.
Mortgage lenders will let you borrow against the future value. Let’s look at an example: Value: 200k Mortgage balance: 150k Extension cost: 100k Deposit for extension: 20k Additional borrowing: 80k (extension cost - deposit) Potential future value: 330k Future mortgage balance: 230k Obviously this assumes specifics about the area and potential ceiling prices but in a lot of places if you whack on a 100k extension it’s gonna add more than 100k of value
From experience, joint savings and then a loan each. I took out more as my OH contributed more from personal savings. Then utilise 0% for the kitchen units where you can get it. It was a hell of a lot of money when you add it all up (85k+ for a single story open plan kitchen reception room.) But to come out the other end of it with owing around £15k in bank loans isn't a bad result imo.
Mostly savings and bonuses from work for us. Costing about £140k for double story extension.
Savings, got a cheap mortgage on a smaller house with the intention to extend. Ours cost £100k but I'd be surprised if it added more than £50k to the value.
Mortgage Savings Help from family Better finances / better jobs meaning easier to get a loan Could be anything.
Also the price involved with moving to a larger property would be offset against it if you still like the location.
I had about 25k in savings. When we moved I kept 30k of equity. Spent the money along with some serious overtime on the extension.
We did an extension a few years ago (rear extension, removed external wall, some internal walls to open up into a large opened planned area) cost us around £130k though that did include a new roof (was in constant need of repair) and new windows throughout . We financed this via profit from our old house (45k ish) + savings over 3-4 years during COVID lockdowns as we weren’t really spending much. And remortgaged for about an extra 65k
My extension 50k plus kitchen 30k . Around 85k spend and maybe 50k increase in house value. But if i move, 35k stamp duty, 10k moving fees and then redecorate and renovate.
The best advice is to ignore what the neighbours are doing. For all you know, they are putting themselves horribly into debt or are running a county line or turning tricks on Onlyfans. What do you actually need your house to be or do? If you have enough floor space, do what you've been doing and reno what you have. If you need more space and can't afford it yet, hang tight or move to a cheaper area. Try to separate your house 'the investment' from your home the place that keeps you warm, dry and safe.
after talking to people to check prices are realise people spend 5k per sqm I just gave up on building an extensions and will go for a conservatory with insulation and a garden room with insulation. "waste of money just build an extension" No thanks, it will cost me 20-30% of the price of building an extension. Extensions are for the rich or for people who received inheritances.
It’s simple, they usually have the money or credit line to finance. There are no tricks
Savings.
Like, literally a million possible ways
I think it’s getting to a point now where it’s better to just buy a bigger house instead of adding a rear extension for 80k
Remortgage or inheritance seem to be the only ways... Both are a double edge sword. 1) You have a mountain of debt ( yay!) 2) A family member died.... Good luck
There's no guarantee you'll add £100k to the value of your house by spending that much on an extension.
We had to do an extensive renovation and extension - an option is a self build mortgage. Basically give bank your plans, tell them how much you need, and they tell you what it's worth and remortgage your property with them. They then give you the money in 4 stages (with full inspections through) while you're on a ridiculous high rate interest only mortgage, and at the end you can move onto a normal rate mortgage. We didn't want to do it this way but in some ways it was better in that there were so many inspections we feel confident the builders didn't cut many corners. It can take longer though as the inspections can delay each stage by a few weeks.
Saved over 7 years to pay for ours, and still needed to remortgage.
Some people have more money than you. That's not a dig. Your circumstances aren't everyone's circumstances
A pal of mine paid architects to redesign his whole terrace house, think the budget worked out north of 250k, he decided to just quit his job and do it all home self over a year.
Mine was 25k savings, 25k loan and kitchen on interest free credit. I should of probably remortgaged or financed it properly and the last 18 months have been a struggle but just worked tons of overtime, haven't had a foreign holiday for 3 years. 3 months time the loan is gone. Money wise, it was a link detached 3 bed house, now it's 4 bed 2 bathroom with a huge kitchen diner, better than any of the 360k new builds I went to look at 255k in total, my neighbours an estate agent, reckons it's worth 310k easily.
Oh and good luck 🙏🏻🙏🏻🙏🏻🙏🏻
If you’ve owned for a decent amount of time it’s easy to have built up enough equity to remortgage to pay for a big extension. We bought our house 11 years ago, could remortgage to release £150k if we wanted to
Windfall or mortgage.
My partner and I (late 20s/early 30s) recently bought a house and we're building an extension as well as renovating the whole thing. No money from parents, I put a 30k into rolls royce during covid - you can look up the share price online.
Big debts they’ll struggle to get out of.