Extending or Moving?

BohemianRhapsody

Hi there. Long time lurker but this is my first post here. Many thanks for reading.

We (family of 4, we in our early 40s, children 8 & 5 years old) have been living in our area in London (zone 4) for about 8 years. We have a bog standard 3 bed semi 1930s house in suburbia. The area is in many ways convenient with a large supermarket nearby, tube station 10min walk away with fast links to central London, outstanding primary school 10min walk etc. However, about 18 months ago the area has started to get run-down. Fly-tipping, people throwing garbage everywhere on the pavement/parks, empty bottles and cans etc. Also, some of the long term owners have sold and moved and the new people moving in are mainly renting which has changed the feel of the road. The secondary school is 1 tube station away so would have to drive once the children are at that age. We were planning to do a back and loft extension to make more space but have started to hesitate and we are thinking of moving.

We are in a fortunate position of being mortgage free with our house valued at ca £500K. An extension would cost ca £100K. It would be comfortable financially and we would have a nice large house more than sufficient for our needs. We would probably not get back the invested money if we sell in the coming few years as there is a top price limit on our road. That said, we would be happy to do it anyway for the better quality of life. We have some decent friends in the area. However, we fear that the area will continue to get worse. It's by no means a bad or unsafe area, and not bad at all to live in, but we think it's heading in the wrong direction.

The other option is to sell and buy somewhere else in London or in home counties with easy commute to our work in London (Waterloo and Earl's Court). In order to do that we estimated that we would need a mortgage of £300-350K for the London property and £200-250K for a house outside London. My wife is just getting back to work after being at home with our children, and the payments would take ca 26% (London) or 17% (outside London) of our joint net income. We would want a fixed rate for 5 or 10 years. It sounds manageable to me but if one of us loses their job or gets long term ill, it will be a real struggle. We would take insurance to cover ourselves but still it's a worry. Another concern is the interest rates rising. With regards to the home counties option, there is also the commuting costs to factor in. We would not have that much of a disposable income, especially if we go for the £350K, which might affect our ability to have holidays etc.

I am aware that each situation is unique and that only we know all the ins and outs of our current circumstance. However, it would be helpful to hear your view. We are both risk averse so the thought of getting a larger mortgage is quite terrifying, especially considering that we are currently mortgage free. And the uncertainty of Brexit is not helping.

What would you do?

Cakeguts

Get onto your local councillor about the the flytipping. Flytipping is happening everywhere you won't escape it by moving you can only escape it by doing something about it.



A lot of flytipping is caused by overcrowded illegal HMOs. The landlords don't have enough dustbins for the tenants and don't ask for more because they don't want to draw attention to who lives in the houses.



Our local council has produced a video about how to spot illegally overcrowded houses.

sst1234

Your concerns about taking out a mortgage are understandable but you haven!!!8217;t said what your household income is and what jobs you and your wife are employed in. If you share this info it would be easier to say whether moving is the better option. Guessing by your calculations on mortgage repayments a % of income, your income is somewhere between £6500-£7000 a month. Since you are having doubts about the area, if you spend money on the house you may end up regretting it.

buggy_boy

Is the flytipping etc close to your home, you can setup a camera and send the evidence to the police...

In defence of landlords I agree there are landlords that are dodgy but actually just as often a couple goes to rent the house, they then never move in and instead sublet it as an HMO the law makes it very difficult to evict and takes a long time even when they do fine out... Although this may not be the issue in this neighbourhood.

newgirly

If you still what to live in easy commutable distance from London you may find you have the same issue where you move to. We are in an expensive suburb in zone 6 and there is a lot of regular fly tipping in the country lanes surrounding our town, sometimes blocking the whole road.

If it was the only issue I would probably not move, however if it's one of many things that are putting you off maybe? As things have cooled in London recently could you save up hard over the next year or two whilst making do with your house as it is , you may have a more clear idea what's you want later down the line and if you do move a smaller mortgage. You could always join us on the mortgage free wanabee board if you do borrow again

BohemianRhapsody

Thank you all for taking the time to share your views. It's not only the fly-tipping but just the general change in the area which we are not liking. The neighbours we liked moved out and we are not connecting with the new people. Some of the houses on the road are not maintained and look pretty shabby. However, it's not all bad. My wife has made some good friends through the children's school, there are still some good neighbours around, the area still feels safe and convenient. I think I am more concerned than my wife.

Didn't realise that fly-tipping is such a widespread problem and didn't link it to illegal HMOs. Interesting. We have reported it to the local council but it's not helping.

I work in Higher Education and my wife in private healthcare. Our joint income is £6K net.

newgirly - we have considered what you are suggesting. It makes sense however my wife is struggling with the thought of living another 1-2 years in a cramped house with a tiny kitchen. We might still decide to wait and save. And yes, I will join you on the mortgage free wanabee board if we do borrow again

BohemianRhapsody

Any other opinions?

lessonlearned

Ok. Heres my tuppenceworth.

Fly tipping is a nationwide problem, whether you are in a grotty city centre hellhole, leafy surburbia or out in the middle of the open countryside seems to make no difference. All you can do is report it to the relevant local councils.

However, the "general decline" you have noticed is something that is within your power to address.

If you really are unhappy with what you see happening around you, then quite simply you move before it gets worse. It tends to be the case that once an area is on the skids it can take a long time for it to recover again.

What is the market like in your area. Are properties selling quickly or is it stagnating. If it is still fairly brisk then maybe it might be best to get out before property values drop as the area declines further. Brutal I know, but this is what happens in cities.

Often it is a cyclical thing.

I am just selling a property in what is, to use Estate Agents speak, an "up and coming area" but it wasn't always the case. The area has had mixed fortunes over the years.

Forty years ago it was a decent working class area with families who had lived here for decades. They kept the houses nice and there was a great community spirit.

Then they decided to turn the local college into a university and the landlords moved in, the larger houses were turned in HMOs and the area took a nose dive. Then, around 5 years ago, when prices had bottomed out, adventurous young FTBs and property developers started moving in and the process of gentrification began.

Now the landlords are moving on to cheaper areas and most of properties are once again reverting to owner occupiers, and values are rising quickly.

I would be inclined to hang fire on spending serious amounts of money on an extension just yet. Maybe just adopt a wait and see approach. However if you are really unhappy with the area it might be best just to bite the bullet and move.

BohemianRhapsody

lessonlearned - Many thanks for your input. Much appreciated.

Yes, the slow but steady general decline of the area is what worries me most.

The market in our area is still okish, I believe there has been a 5% decline in prices in the past 6-12 months. The prices for 3 bed houses (around the £475-£550K mark) are still relatively reasonable for London so people are still buying here. I have noticed that there is also a fair amount of people extending/fixing their houses in the area so clearly not all people feel the same as us.

I think what we are going to do is to fix the bits and pieces needed addressing in the house making it ready to be put on the market and then decide what to do.

sst1234

If the area is no longer suitable for you, spending money on an extension is not going to solve the problem. Your financial position appears to allow you to make the move you are considering. Good luck with whatever you decide.