Investing in Extending Your Home Rather Than Moving Out

 

It’s a question that we often get from our clients, and with the massive increase in popularity of investing in properties rather than moving house, we have created this guide. With increases in stamp duty, the ever-growing costs of legal fees, and the stress of moving, many understandably just don’t want to move out and instead want to invest in their home. Then, when they finally want to move, they are making a profit on their property.

 

Category	The Cost of Moving House (UK)	The Benefit of Extending (Stay Put)
Stamp Duty (SDLT)	Up to £15,000 – £30,000+, depending on property value. This is a pure tax that adds zero value to your life. Stamp duty has increased in recent years, and it is a high cost that deters current homeowners from buying a new property unless they have to.	£0. Every penny is spent on physical improvements and extra square footage for your family. You don’t have to pay these fees, and you can stay in your current property.
Estate Agent Fees	1% to 3% of your sale price. For a £400k home, this is £4,000-£12,000 just to sell your current asset. This is a substantial fee that covers property marketing and buyer organisation.	No Sales Fees. You retain 100% of your current home’s equity while increasing its future market price. You also save time, where you don’t have to worry about organising visitations of the property, as well as the other side of having to buy a new one.
Legal & Conveyancing	£1,500 – £3,000. You pay for two sets of legal work (buying and selling), including searches and land registry. This is also effectively infinite if the deal falls through and you don’t reach an agreement. If deals fall through, you have to go through the entire process again.	Simplified Legals. Only basic building regulations or planning fees are required, which are significantly cheaper.
Physical Moving Costs	£800 – £2,500+ for professional removals, packing materials, and cleaning services. This is a very stressful part of the process, where you always have the difficulty of moving all of your items and then setting them up again in your new home.	No Upheaval. Your belongings stay exactly where they are. No boxes, no bubble wrap, and no broken vases. You can also move a room into the new extension, creating a new room in your current home which you know and love.
Emotional Stress	Ranked as one of life’s top stressful events. Includes chain collapses and the risk of “buyer’s remorse.” The uncertainty of buying and selling can cause significant stress for you and your family.	Creative Control. You design the space exactly as you want it (e.g., a sun-filled conservatory or a bespoke kitchen extension).
Community & Lifestyle	Risk of losing great neighbours, local schools, and your familiar commute. Unless you can find	Stability. Stay in the neighbourhood you love, near friends and schools, while solving the space issue.
Asset Value	Moving to a larger house often requires a larger mortgage with higher interest payments.	Equity Growth. A well-built extension can add 10% to 25% to your property’s value, providing a massive ROI. You will need to inform your mortgage lender, but you will not pay anywhere near as much as a new valuation for a large home, which is based solely on the overall living space.

 

We are one of the leading installers of conservatories and home extensions in Newcastle and across the North East. We will work with you to invest in your home rather than buying a new one, increasing your property’s overall value and saving you money on moving. Get in touch to arrange for your free quote.

 

Why Investment is Now So Popular

 

It’s no surprise that investing in current properties has become increasingly popular. When you need additional space, it’s likely because of a new family member, because you need more living space, or because you just don’t have enough space for many reasons. With the rising costs of finding a new home, as well as it being one of the most stressful regular things that you can do, it’s no surprise that homeowners and property owners are deciding to invest in their current properties rather than buy a new one. The increases in stamp duty have been the biggest driver of this, and the additional costs aren’t getting any cheaper. 

 

Extending Your Home

 

Depending on your extension, these may also fall under permitted development, meaning your project can move fairly quickly, depending on how much of the design you have in mind and how quickly you can make a decision. There are many different extensions available that can enhance your home and provide a massive return on investment. As an extension, you will have a fully functional new room on your property.