What will it cost to extend or is it cheaper to move?

There is, of course, no correct answer to whether its more cost effective to move or extend, and will depend on individual circumstances.

Moving

The location and demand for your property will make a big difference to whether your extension will add value to your home when it comes to selling.

Moving costs are typically £800 for RICS survey, £2500 for solicitors fees, 1.5% of property value for estate agents fees for selling, removal firm £1500, stamp duty which depends on the value of the house you purchase but could easily be in excess of £40,000 check here https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro

Since the pandemic and a paradigm shift to hybrid working from home, moving may be desirable to provide more garden space, a garage for a gym or home office etc. or even to a less expensive location if you don't need to commute.

Extending

As a guide, extensions cost between £1500 - £2000 +VAT per square metre per floor. More accurate costings can be prepared with a basic plan and specification.

You will need to also budget for statutory and professional fees, allow 3% of the build cost for architectural and planning fees and 10% of the build cost for Building Regulation approval.

Part or all of your home will temporarily become a building site until completion, which will be stressful for your family. You may have extra costs if you have to move out during the period of the build.

Unless you are reasonably competent with building construction technology and/or totally confident with the contractor, you would be advised to appoint a project manager. However their cost, typically 3-5% of the project value, is likely to be saved in management efficiencies; reduction in wastage and re-work, co-ordinating trades to minimise time delays

Example

Suppose you own a 4-bed detached house worth £800,000 with floor area of 250 square metres. You would like more space, say a further 150 square metres.

To move might need a house worth £1.2 million. Stamp duty would cost £61,250 plus other costs total £84,000 in addition to the additional price say £484,000

To extend the build costs approx £300,000 plus £40,000 fees say £340,000

Summary

In addition to the moving costs, most people end up spending more on at least minor alterations or improvements to their new home.

Generally, if you are happy with the location and neighbourhood of your property, if the remaining part of the house is how you like it, and you are up for a project lasting 6-9 months minimum, then extending is going to be your cheapest option.

Extending substantially within an urban area is unlikely to over-develop [i.e. cost more than it adds value] nor be a problem to obtain planning permission.

Blog includes details relevant in September 2024