House moving nerves.

billy2shots

I think it's pretty natural to experience some worry when it comes to moving. My wife and I have pretty much driven each other mad so it would be great to get some opinions from people on here who can leave emotion at the door.

I'm 36 and my wife is 38. We have 2 children 8 and 6.
My income is £46k per year. my wife is a TA and her contracts tend to be temps as government funding is requested at the end of each year so I would rather leave her wages or lack there of out of this (currently £5.5k).

We are mortgage free and have accepted a £315k offer on our house. We have no other loans and live quite modestly (hence being mortgae free at 36).

We have an offer accepted on a new build (£555k) which will require us to take a mortgage of £215k. This will be fixed for 5 or 10 years at a cost of £860 a month (for the 10 year). it's highly likely I will go with First Direct so I can overpay unlimited amounts.

Here is the stressful part.

We have a nagging feeling that we should stay put. Our current 3 bed 2 reception bungalow is fine now but we will outgrow it soon. It needs modernising again now 10 years after me and my dad blitzed through out when we first moved in. I could add a rear extension and a loft conversion which would then allow for 4 beds, 2 baths and large kitchen/diner/family room and a separate lounge.
This could be done by taking a mortgage of £110k and would be paid off in 10 years. The downside being it will always be a converted bungalow with some slopes in the roof space regardless of dormas etc.

This would be a big job throughout the home and we would need to go into rented for 3/6 months.

Our current home is closer to the kids current school but further away from senior schools than the new house. They would walk when they are older so it makes sense to me to be nearer the senior school.
My work is closer to the current house and in 5ish years time i will be based further away still from the new home. In all honesty these are first world problems as i'm still close compared to what many commuters face.

1.3 miles to work from current home. 4 miles from new home.
6 miles from future work currently. 9 miles from new home.
Current school 0.2 miles away at present 4 mile drive from new home.
Senior school currently 40 minute walk away. Potentially 20 in new place.

I do feel ready for a move and understand the logistics aren't that big a deal. I think I have been spoiled a little regards distances to work and family and this is clouding my judgement.

So.......

What do people think? Make the move or am i mad for even considering it. Friday is D day with retention fees and search fees due.

Sapphire

Sounds as though you want to be persuaded to stay put. Do you really need to move? If not, I'd suggest you stay put. Moving for you would appear to be a lot of hassle/expense.

billy2shots

Sapphire wrote: »

Sounds as though you want to be persuaded to stay put. Do you really need to move? If not, I'd suggest you stay put. Moving for you would appear to be a lot of hassle/expense.

Ultimately I know that only we can decide so I suppose im looking at seeing what others would do in the same situation.

Moving isn't just about needing to as like many 'movers' there often isn't a need. We do 'need' more space whether moving or converting.

Moves always cause hassle and expense but so would renting for 3/6 months and converting. The hassle would be greater but the overall financial burden would be less. I'm worried the outcome of the conversation will always be compromised and I may not be happy with the result.

middleclassbutpoor

Only you will know deep down what the right thing is to do.

My observations/thoughts would be.....

You will need a 4th bedroom so you have narrowed it down to 2 reasonable choices of extending or moving.

My personal opinion of new builds at the moment is that the Help To Buy scheme is inflating the prices of them. I would therefore naturally consider the new build less favourable. Your debt will be greater and potentially the value of your property may go down more than possibly a pre-owned house.

Also, just to add, if you like/get on with your neighbours, consider that new builds tend to bring a lot of people together at once and you enter the unknowns of good/ok/inconsiderate neighbours, parking issues as people have more cars than spaces etc.. Snagging issues on new builds happen too so new builds carry risk also.

I think also the longer you can stay mortgage free, the better you will be financially so if you are not needing the bigger house for 2-3 years then you could be paying for something that you don't need at the moment.

Personally, unless there are other factors which have prompted you to move now, I would really question why you have done what you have done at this moment in time?

Schools/work choices could change in 2-3 years time also so could be a premature move that doesn't actually benefit you should either of these things change your circumstances..

billy2shots

middleclassbutpoor wrote: »

I think also the longer you can stay mortgage free, the better you will be financially so if you are not needing the bigger house for 2-3 years then you could be paying for something that you don't need at the moment.

Personally, unless there are other factors which have prompted you to move now, I would really question why you have done what you have done at this moment in time?

..

Thanks for your input.

We have been in our place 10 years now and it was our first home. I feel property prices are getting away from us and we really are stretched to get something that we actually like. Waiting 2/3 years may see that become impossible. Alternatively there could be a crash and we could be quads in, that is like trying to time the market though and I would rather deal in facts that we know at present.

2/3 years is also too long to wait as to change our current place. It needs a new roof and windows thorough out asap so it makes sense to do all the work now.

p00hsticks

middleclassbutpoor wrote: »

You will need a 4th bedroom so you have narrowed it down to 2 reasonable choices of extending or moving.

This is the bit I'm not getting.


I see no mention of the OP needing to work from home / looking to increase family size / move mother in law in / not wanting to sleep with wife, so why is a fourth bedroom needed ? Presumably each child currently has their own bedroom so why does the OP feel they are outgrowing the current home - what function would an additional bedroom provide ?



And is that extra really worth £860 a month (= £210 a week, £30 a day) ?

middleclassbutpoor

So is the difference in cost worth the convenience?

Stay put - deal with the renovations - costs can escalate, rental costs etc.

Move - no major work or hassle to deal with. Costs of moving, increased mortgage, potential ongoing management fees etc.

They are the only facts you have to work with as far as I can see from what you have said. House prices are unknown but I find it difficult to accept that house prices are accelerating away from you in the way you feel they are (new builds look this way because builders are profiting for selling something for more due to cheap initial lending available).

As I said, you know deep down whether something feels right or not.

getmore4less

10 years is not a long life for the work you did.

Bottom line will be have you been saving around £1kpm since mortgage free.

Why new build?

Bossypants

If you're comfortable doing renovation work, I personally would avoid a new build altogether, the price is usually inflated, the rooms smaller, ceilings lower and overall build quality worse.

In your shoes I would look for a slightly run down multi-storey house in your current area and look at how the cost and inconvenience of bringing it up to standard measure up against staying in your bungalow vs getting the expensive new build.

billy2shots

4th bedroom although not essential is very much wanted. SIL and MIL stay for approximately 8 weeks each year.

We looked st houses seriously 2 years ago and £475k would have bought something that fit our requirements. Now £550k is needed.
I can't save £75k in two years so I do feel house prices are getting away from us.

happyandcontented

I hate to say the dreaded B word, but in your position, with no pressing immediate need I would hold off until the issue is resolved one way or another and the waters have settled. House prices could fall dramatically, but I doubt they will rise dramatically.