Move or Improve?
Are you considering spending time and effort moving house? Or would you prefer to spend this
effort on improving your home with an extension and or a revised layout? How are you going to arrive at a decision?
*A good way to start is to look at the average cost for a single or a double storey rear extension. An extension that you would typically be able to undertake under Permitted Development, would be 6m out from the rear of your property. Compare the costs of such an extension to the average cost of stamp duty and other moving costs. For London and the South East, the average cost for a single storey extension is £1,800 - £2,200 per metre squared, excluding VAT, professional fees or any expensive extras such as a new kitchen or bi-fold doors or difficult site condition.
If we take the mid-point of the price range £2,000, the basic cost for a six metre single storey rear extension allowing for a 30 metre squared extension (5m x 6m) is £60,000. Add VAT at 20% (£12,000) and professionsal fees, say £15% of £60,000 (£9,000). The basic cost for a single storey rear extension in London/South East is £80,000.
If we do the same again, for a double storey six metre rear extension, as a general guide you can add 50% of the single storey basic cost to get the cost for a double storey, which would be £120,00, including VAT and professional fees.
You would then need to budget upwards of £10,000 for a new kitchen (this would give you say, an Ikea kitchen with low/mid range appliances), new bi-fold doors would cost you upwards of £5,000 for a 2.5m width opening.
If we then look at the average cost of a house in Surrey over the last year which is **£535,134,
stamp duty would amount to £16,757, legal fees (0.5%) £2,676 and other costs (0.5%) which could be the cost of removals, domestic connections/disconnections, changing locks etc. £2,676. The total moving costs on average Surrey house would be £22,109.
Therefore, should you choose not to move house you can put £22,000 of stamp duty money saved towards your single storey extension (£80,000) or double storey extension (£120,00).
Food for thought....
* Information obtained from www.designfor-me.com/project-types/extensions/how-much-does-a-house-extension-cost-in-london-south-east/
** Information obtained fro Rightmove.co.uk