A lot of people move home to gain more living space.  The cost of moving can be huge when you take into account the cost of selling, lawyers fees, estate agent fees, removal costs, buying and setting up costs of the new home.

Another alternative is extending your current home, assuming that you have the available land to do this.

Lets look at some of the numbers involved in moving and extending.

Example:  You have a house for sale at £230000 and are buying at £260,000.

Costs of selling and buying:

Estate agent fees at 1% = £2300 + advertising costs of about £500 = £2800
Legal fees = £500 - £1000
Moving costs = £1000 - £1500 (if you use a removal firm)
Buying new property at 3% stamp duty = £6900
Extra mortgage cost at 6% per month over 25 years = £57,000

Total cost of buying and selling= £68,000 - £69,200

There will of course be other small costs involved which can add up to another few thousand.

A lot of buyers don’t take into account the cost of adding the extra mortgage payments and the interest added onto this.

Possible cost of extending

Average cost of extending a 2 storey property can be between £15,000 - £40,000.  this obviously depends on what you want, but if it is an average extension then it should be no more than £40,000.

Architectural drawings - £1000 - £2500
Extra mortgage costs at 6% over 25 years = £30,000 - £81,000 (depending on the extension)

Total cost for extending = £30,000 – £81,000

This article was about looking at the costs involved in moving home as opposed to extending your home.  However, whilst investigating this subject a little further I came across Simon Smith from www.betternest.co.uk who runs a great website helping you to make the decision whether to move or extend.

Here is what Simon says on his site:

Betternest… Revealing Property Potential

Do you own a semi-detached or terraced house?

Do you know what Permitted Development Rights are?

Most people already own them, do you?

Did you know that these rights allow you to add extensions, create lofts, construct outbuildings for home offices, enlarge and add windows, convert garages and more? All without the need to go through the formal planning process or consult with neighbours.

Surprised?
Most people are.

What makes these rights so special? Firstly, you already own them. Secondly these rights allow you to do things that you couldn’t do under full planning. Thirdly when there gone there gone, you can’t buy them back.

At Betternest we believe that when you buy a property you buy its potential, that’s why we created the Property Potential Report; the fastest and most effective way to reveal the Permitted Development potential contained within your home.

Do you know if you own Permitted Development Rights?
Do you know what you could do with them?
Do you know what they could be worth?

The Property Potential Report answers these questions in two to five working days for only £395.

Get the report or you might just buy a turkey, or worse, pass on a gem.

So before you decide whether or not to move or to extend why not check out his site at:

www.betternest.co.uk

I have to state I am no way affiliated with Simon Smith or betternest.co.uk.

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