There may be a point when you too might want to move to a larger home, this could be due to an expanding family, or even a promotion, which could mean that your income has risen to a level that enables you to afford a more comfortable and spacious property (lucky you!) or maybe your present home may simply no longer suit your lifestyle.
No matter what the reason, the actual process of upsizing may end up being somewhat more expensive than you expected. Here are just some of the key issues to consider when planning your move...Mortgage The first and most obvious factor to consider is likely to be whether you are able to secure the necessary finance. In the years before the recession, mortgages were readily available to almost anyone; in some cases you didn’t even need a deposit. Today, they are significantly more difficult to obtain, the process takes longer than in the past and you will need to provide your bank or building society with detailed financial information to prove you can actually afford to repay the loan. Many bank, building society and mortgage comparison websites provide free mortgage affordability calculators, which make the task of estimating the monthly repayments relatively easy. Remember, having your chosen lender pre-approve your mortgage puts you in a stronger position when negotiating the best price on your new property.
On-going costs Moving into a larger property brings with it a whole raft of additional costs. These are not just the one-off expenses such as conveyance, estate agent’s and surveyor’s fees that are usually associated with purchasing the property.
Council tax – the more expensive the property, the higher the council tax band, so before committing yourself to the purchase visit the local council’s website and check out how much extra you will have to pay.
Utilities – being bigger, your new home will almost inevitably cost more to heat; more bathrooms mean higher water bills and more rooms equate to higher electricity costs. It is well worth taking this opportunity to visit utility price comparison websites to find the best possible deal.
Insurance – the cost of insuring your home and contents will rise, as will your life insurance. This sector of the market is particularly competitive, so be sure to compare providers and request home and life insurance quotes. Never be tempted to take the risk of doing without home insurance or underestimating the value of its contents. Similarly, if you have a family or are thinking of starting one, be sure to purchase a mortgage life insurance policy. This is the only way to protect your dependents from the possibility of being made homeless should you be unfortunate enough to die before the mortgage is repaid.
Maintenance – bigger homes mean more rooms to decorate, clean and furnish. The exterior fabric of the property will cost more to maintain, as will the garden.
Other considerations Before doing anything else, give some thought to whether you really do need to move or if it would make more sense to extend your existing property. Moving home may involve your children having to change schools, which can be incredibly stressful and disruptive. On a more positive note, if the kids are currently sharing bedrooms they will love having their own spaces.
Moving home should be an exciting and positive process. Get it right and you and your entire family will feel the benefit for years to come.
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