If you’re getting restless and feel that it’s time for a change of scene, don’t automatically think of a move. If you need a bigger house for family reasons, or it’s necessary in order to take up new employment, then that’s a different matter and it may well be that you have to get into the sales process, with all its chains, broken promises and disappointments.
If it’s possible that your current home could be up-dated, extended or improved, then think carefully before rejecting this option. Re-mortgaging to increase the value of your property should be looked upon favourably by your lenders and whilst it may cause a whole lot of upheaval to turn it into a home slightly more like that of your dreams, it may be more financially sensible in the long run.
You need to classify the improvement by whether or not they’re going to improve the quality of life for the family, whether they’re actually necessary to preserve the value of the house – such as essential repairs, or whether they’re going to increase the value of the house by an appreciable amount.
Re-mortgaging or borrowing to do the work you should have been doing anyway is the wrong way to look at things. Things like maintaining the guttering, replacing loose tiles on the roof, making certain that tree roots are not affecting the house foundations shouldn’t be necessary and should be part of on-going maintenance. Whilst, assuming that you have been in the house long enough for it to have gained in value, you could re-mortgage to release some equity to do this work, it’s not what’s going to increase the value of your home. If you were to try to sell the property with these things undone, then you’d have reduced the value and apart from that, it might be difficult to even get potential buyers past the front door.
Most people would jib at making drastic alterations such as actual extensions or additional bathrooms solely to increase the value of their home. It can be extremely disruptive and difficult to live with unless you’re landing up with something you really would aspire to, but in fact there are certain “improvements” that are really worthwhile and others less so.
It would be unwise to add another bathroom or en suite to a small house, if it means losing a bedroom. It’s a different matter in a larger house, though. The idea of a garden room, rather than a conservatory is good and adds a real room to the house. An efficient heating system would make life better for current use as well as adding value. Certainly if there’s no central heating then it’s an absolute yes to installing it. New kitchens as a way of adding value are questionable. They’re very much a personal taste issue and what you love, a buyer may hate. As long as the kitchen is tidy, functional and presentable, then forget the investment side of it.
Double glazing is worth installing. Solar panels too are gaining in popularity and checking and upgrading the insulation is well worth while. If there’s any way of increasing the amount of car-parking space then this is good, provided it doesn’t swallow too much of the garden. Make sure that any extensions don’t result in the house swallowing up too much of the site and outgrowing it.
Maybe it’s time to get some quotes and try to find out what the total project is likely to cost. Allow some money for things you’ve overlooked. Compare quotations and read all the small print.
It’s probably worth talking to your current lender, to see what they’ve be willing to offer in terms of a re-mortgage. Bear their offer in mind but then the next step is to find an on-line broker, to find some comparisons. An independent broker will find out exactly what you need, give you no end of advice and search a very large market to find the deal for you, at a price you can afford.
Sheila Challiner
http://www.articlesbase.com/finance-articles/a-step-up-the-ladder-author-dot-piper-709527.html
Add A Comment