The Best Financial Option Could Be To Renovate and Reinvest Rather Than Moving House

The property market in the UK continues to struggle with a lack of mortgage finance, a shortage of buyers and prices continuing to fall. So, it's no surprise that many homeowners have scrapped plans to move and have instead remortgaged in order to improve their properties. If you have space for a conservatory or extension or if you have an unused garage or loft that you could convert then you could add significant value to your home. And, a remortgage can be the perfect way of raising the cash you need to complete the work.

A Lack of Active Buyers: Maybe you are finding it difficult to locate a prospective buyer for your home. If one of the principal reasons for you deciding to sell was to add more space, perhaps because your family has grown, then renovating with a remortgage could be a viable option for you. Enlarging your family's property could give you the space for a bigger kitchen, a new dining room or an extra bedroom, and eliminate the need for a move in the first place.

You might find that you are part of a growing trend across the UK if you chose to renovate your property. Editor of Home Building and Renovating Magazine Jason Orme said there were "in the region of 100,000 to 200,000 projects undertaken each year."

The cost involved will really differ every time, as it really does depend on how big the project is, and how good a job you want doing. Of course, the area may also have a effect on the cost, as affluent areas will generally see labour costs increased too.

A general timeframe for a one storey extension to be finished, for example, is about 3 months, with an extra three to five weeks if the extension includes an extra storey.

Why Reinvest? Existing market conditions are gloomy to say the least; the quantity of purchasers actively looking for property is at a historic low, though it is growing gradually year on year. First time house hunters have yet to be tempted by the government's stamp duty incentives and prices are decreasing in most parts of the country. For the majority of homeowners, remaining in their house is the only viable option.

The equity in your property need not sit there locked up and untouched. By accessing this equity, you can improve upon your home to increase your standard of living, as well as adding value which is an investment in your future as the property can be sold for a higher amount in the years to come.

A loft conversion costing on average 20,000 could add an extra bedroom to your property, putting it in a completely new market. An extension which adds a new dining room or creates a combined living room/kitchen can make your property an irresistible prospect for buyers, especially if it makes it stand out from the other properties on the market in your neighbourhood.

Extension projects can be cheap, non-disruptive or fast, but are rarely all three, Orme said, adding that it was difficult to save lots of money by doing a job quickly build because it usually means employing more workmen, at a higher cost. Likewise a build which keeps everything clean and stress free will also be more expensive.

Act Soon or Lose Out: With interest rates remaining at their current record low, now could be the perfect time to find a remortgage deal. There are some great rates available in the market and remortgaging can let you raise the cash you need to undertake a building project on your home. Not only will you add extra space but you could add significant value to your property.

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