One of the most common decisions for growing families in London is whether to extend their existing home or move to a larger property. Both options achieve the goal of more space, but the financial and practical implications are very different.
The cost of moving house in London is substantial, even before any improvement work to the new property. Stamp Duty Land Tax on a purchase price of seven hundred thousand pounds — a common range for London family homes — is approximately twenty-two thousand to thirty-five thousand pounds. Estate agent fees at one to two percent of the sale price add seven thousand to fourteen thousand pounds. Solicitor and conveyancing fees add two thousand to five thousand pounds. Surveys, mortgage arrangement fees, and removal costs add a further two thousand to five thousand pounds. The total transaction cost of moving in London — even in a straightforward chain — is typically thirty to sixty thousand pounds before any work to the new property is considered.
The alternative is extending the existing home. A loft conversion adding a bedroom and bathroom might cost seventy-five thousand to one hundred and ten thousand pounds. A rear extension adding a kitchen-dining room might cost fifty-five thousand to ninety thousand pounds. Both projects can add value to the property that equals or exceeds their cost in many London locations, meaning the net cost of achieving the additional space is lower than the transaction cost of moving, let alone moving plus improving.
Extending wins financially when the property has genuine development potential, the area is one you want to stay in, and the gap between your current home and the next home up the ladder is larger than the cost of the works. Moving wins financially when the existing property is genuinely not suitable for what you need — the plot is too small, the location is wrong, or the structural constraints make the required works unachievable or disproportionately expensive.
There are non-financial considerations on both sides. The disruption of living through a renovation — particularly a four to six month project in an occupied house — is significant and not to be underestimated. Moving is also disruptive but is shorter and finite. Emotional attachment to a neighbourhood, school catchment areas, and relationships with neighbours are all factors that legitimately influence the decision.
RCB discusses both options with clients during the pre-construction consultation and will give an honest assessment of what an extension can achieve for a specific property before any commitment is made. 07359 872594 | contact@rcbgroup.co.uk | www.rcbgroup.co.uk