£40k to convert loft (add two bedrooms) or move (from 3 bed to 5 bed house)?

Sportacus

Hi,
Got a quote for a loft conversion (from a top local company that does fixed-price loft conversions) and it's about double what I'd hoped.  It's go me questioning whether it would be better/more economical to move house (I'm in the south east so forget about being under the 250k stamp duty threshold).  

Alter_ego

Adding two bedrooms won't increase the downstairs accomodation. Also 5 bed is likely to have 2/3 bathrooms.

RelievedSheff

For me I always find that properties that have added bedrooms and had loft conversions they always feel a bit top heavy with not enough living space for the amount of bedrooms.

need_an_answer

Whats the cost of the 5 beds that you are looking at in relation to moving to?
Just because you add 2 bedrooms in the loft doesnt always equate that you have a home of the right proportions or indeed that it would then be considered in the same league as somewhere that was planned out as being a 5 bed house originally.

Having gone through loft conversion previously for us it added some value but not a great amount in relation to what it cost and also didnt substantially increase the size of the property...it worked for what we wanted from it which was good but in terms of investment and added value then I  would say that was limited.

If its space you are craving for extra family then conversion is the cheapest option usually but actually moving somewhere where thats already created is probably the better althouigh sometimes more expensive solution.

Sportacus

thanks, I really need the extra rooms quite badly, already have two bathrooms, built-in garage, and reasonable garden.  Not expecting to add £40k to my house's value, just to avoid spending more moving.

ianthy

We will shortly be adding a loft conversion to our terraced house in North London. We will also be reconfiguring the ground floor to create more space etc., From the houses that i have seen - some try to squeeze in too many rooms in the loft - creating small cramped spaces. In our case we will be adding just 1 bedroom in the loft and en-suite bathroom, using the PD rules.  In London, given the cost of moving house it makes financial sense to add a loft conversion.  

princeofpounds

Stamp duty on a 5 bed in parts of the south east is going to be big. Add on another 4k or so in moving and legal fees. Add on 1% your house value for estate agent fees... you see what I'm getting at. Do a few sums.

AdrianC

Sportacus said:

Got a quote for a loft conversion (from a top local company that does fixed-price loft conversions) and it's about double what I'd hoped.

This bit is why the quote's steep.

For them to be able to promise a fixed price, the easy jobs have to subsidise the expensive ones...

Look at the floorplan of your house now, and the floorplan of the houses you'd be looking at moving to.

lincroft1710

Unless you're in one of the cheaper areas, I can't see you finding anywhere suitable for an extra £30,000. Because by the the time you had paid EA and solicitor fees plus moving costs and all the "hidden" extras that come with moving, that is what you would have left from the £40,000 you would have otherwise spent on the conversion. 

Downside of a conversion - well it helps if you like DUST!

Sportacus

Ok, just been doing some searching on rightmove and see that the cheapest 5 bed houses say 'HMO' in the listing and look like they've been designed to cram students in - they are advertised for about the same price as zoopla says my 3-bed is worth.  Proper 5 bed houses are DOUBLE the price.

What this means is:
Conversion cost £40k: adds 30% to my existing mortgage.
Moving to one of these cheap 'HMOs': £25k in fees, no change in mortgage, houses look crap.
Moving to 'real' 5 bed house: multiplies my mortgage by 5 + £25k in fees!

Looks like has to be the conversion.

martindow

You also need to look at the space you will lose downstairs to fit a staircase.  As has been said be realistic with what you will achieve in the loft.  If you have sloping ceilings, rooms have a lot less usable space than the floor plans suggests.