Top tips for upsizing

Upsizing was something most buyers did when their families were growing – but that’s not always the case now!

The past two years have taught us that our homes are no longer just a place to relax and sleep in while spending time with family. After the lockdowns to prevent the spread of Covid-19, working from home is more popular than ever. But it brings with it a few issues.

Many people have discovered that the spare bedroom really doesn’t work as an office. So, for those who are planning to be home-based workers in the future, upsizing is increasingly popular – whether you have new family members to think about or not.

So, if you have finally decided that a tiny desk or working from your kitchen table is no longer fun, here are some tips.

Finances

Upsizing means a larger property and that is usually reflected in the price. So, our first tip is to work out your budget. Would it be better to remortgage to make improvements to your current home, such as an extension?

If increasing the size of your current property won’t work, then look at your mortgage. Work out what you have paid off and what price you’re likely to get for your existing property and whether you can afford a 10% deposit on the type of houses you want to upsize to.

Overpaying your mortgage could be an option so you increase your equity, but check the terms and conditions first.

If everything is OK, then remember to work out other costs. Moving fees, Stamp Duty, legal fees and others soon stack up. Don’t just look for a bigger property without thinking finances.

Extra costs

While there are obvious moving costs when upsizing, a bigger property could mean larger bills! More and bigger rooms may take more to heat, especially if you’ve chosen an older property. Council tax may also be higher if the value is in the next band or two up.

Think ahead about all the extras or you could end up wishing you’d stayed put! As we mention below, moving location could add to transport costs if you’re further from family or a supermarket! Budgeting is essential.

Location

You may find a bigger property that is of a similar price to your current home, but that could mean having to move to a different area with lower market values.

While this may seem to be scary, you could find a perfect property in a new area that’s not too far from your current address. Of course, if you have children you may need to ensure it’s not too far to travel if you don’t want them to move school.

If you cannot move to a new area, then consider finding a property that needs renovation. You can find a great deal on such a house… but budget for the work that will need doing. If it’s structurally sound and the decor isn’t too bad, it could be a work in progress if you are happy to wait.

Buy or sell?

What is your timescale? If you need to move quickly, then finding your ideal property could be the solution before you put your current home on the market.

But if there isn’t a rush, consider selling first! It sounds scary, but if you can rent for six months, it will reduce pressure on your timescale. As a result, you are less likely to rush and buy a property that you end up finding isn’t suitable.

And while you might be paying rent for a while, it means you don’t have to worry about whether your home will sell. You may want to avoid paying a mortgage on two properties.

The best advice is to plan and not panic buy! If you are thinking of upsizing, speak to one of our experienced team who can give you advice and help you make the move.