Upsizing Your Home
There are many different reasons as to why you should think about upsizing your home, whether this be meeting someone, starting a family or because you are earning more money and can now afford something bigger. But there are many considerations and key questions you need to ask yourself when upsizing to a new property.
Do you need to buy a bigger property?
When it comes to how much space you want in your home, it’s ultimately down to personal taste. Starting a family or wanting a home with a garden or wanting more kitchen space could lead you to start looking to upsize. Although, sometimes just renovating the space you have now/extending rooms can be enough.
Buying a new property is expensive and can sometimes be the wrong thing to do, so make sure you evaluate your home and options before making your decision.
Is now the right time to upsize your home?
When looking to upsize from your property you should consider the fluctuation of the housing market and if there are any important aspects that are coming up in your future, for example:
- Are you going to have or have anymore children?
- Are there deadlines for a child starting a new school
- Could there be any changes to your current job situation
- Are you financially stable
Things to consider when upsizing for a family?
What will your budget be? Try and make this realistically match up with your expectations in terms of area, number of bathrooms/bedrooms and layout.
Stamp duty, conveyancing, moving costs, repairs, and the long-term costs including higher bills for amenities etc can all add up. And remember, more space can mean buying more furniture.
Figure out what features you want, whether this be another bedroom, a playroom or an office area. This will help you stay focused when choosing which properties to view.
Researching the local area is worthwhile. As well as assessing transport options and nearby amenities, look at the area’s local schools and their Ofsted reports, class sizes and catchment areas.
Do you need a deposit to upsize?
When upsizing you will need a deposit, however, because you are already a homeowner when you sell your “equity” can be used towards the deposit. You’ll still need a mortgage in most cases and as you have had a mortgage, lenders will consider this when assessing your mortgage claims and can potentially help you secure more favourable deals.
You can often “Port” your current mortgage and “Top UP” if required, but your Mortgage Advisor will discuss the most suitable options for your individual situation. You will also have to pass affordability and property criteria as well.
Upsizing & Stamp Duty
It is essential to keep in mind the other costs of upsizing and moving house to ensure no unwanted surprises when it comes to financing and managing your budget.
Stamp duty is one of the highest costs of buying a new home, which is why it is important to budget effectively and pick the right property for you. It is often a forgotten cost when it comes to buying a new home, which adds to the price tag of your property.
Most people pay Stamp duty on completion; therefore, you should ensure that you factor it into your home buying budget. Also do not forget Legals fees and Lender fees.
