Unsure what to do with lump sum

Voight_Kampff

I have been given a £10,000 cheque - what do moneysavers recommend? This equates to about 7 months net salary for me. I was considering either putting it towards my mortgage (I am 2 years into a 25 year term of £80,000), or using it to do much-needed repairs to my flat so I can then sell for a higher price. Exotic holidays, although very tempting, are not a good idea!

Everest

Lucky you! I'm sure you deserve it!

How much work needs to be done on the flat? How much of this work will actually add value, are you intending to sell up soon? Why not get an estate agent round to value (just out of interest) and ask them what, in their opinion, would add the most value to the property. Do this with a few EAs, that should give a pretty good idea of what needs improving the most. Spend the money on the most necessary, but don't overdo. Only so much is value accretive

Then make sure you have emergency cash should you need it. After that pay off as much debt as possible. A few thousand could make a big difference to the flat, the rest will make a hefty dent in your mortgage.

That's my advice anyway.

Voight_Kampff

Thanks Everest,
I agree, a few valuations would be a good idea and will help with the decision making process. I'll give it a go.
cheers for that.