The Big Question: Renovate or Relocate?

For some, lockdown provided the perfect opportunity to take stock of what matters and appreciate their homes in an entirely new way. For others, the whole situation made it abundantly clear that they simply were not happy with where they lived.

COVID-19 has forced millions to revisit what we expect, what we want, and what we need from our homes. Particularly with more people than ever now working from home on a semi-permanent basis, many homeowners are struggling with the space they have available.

In which case, there are two primary options to choose from: relocate or renovate. both of which can be advantageous in their own unique ways.

Relocating in the current climate

While COVID-19 has brought about inevitable obstacles and challenges for those considering relocation, there is also one major home-buying benefit to consider right now. The temporary stamp duty holiday introduced by the chancellor has removed all stamp duty liabilities for anyone purchasing a property with a market value of £500,000 or less.

This amounts to a significant discount on the overall purchase price for most buyers until March 31 next year.

In addition, lenders in general are currently willing to accept relatively low down payments of 10%–15%. Although some continue to demand 20% or even 25%, there are affordable options available for movers and first-time buyers alike.

Comparing the market with the help of an independent broker is essential to getting the best possible deal in the current climate.

Renovating your existing home

Of course, there are many instances in which conducting renovations and home improvements could be more cost-effective than relocating. For those considering renovating their existing home, experts advise first establishing whether the structure of the property is suitable for the proposed alterations.

This will typically mean arranging an inspection and survey of your property and having an independent contractor look at and guide you through the options available.

Some smaller extensions may not require planning permission, though it is still advisable to make the necessary inquiries to ensure you do not contravene restrictions in your area.

Funding major home improvements and renovations has the potential to be easier and more affordable than obtaining a conventional mortgage. By securing a property development loan against the value of your home, you will have access to competitive rates of interest and low overall borrowing costs.

Compare the market

Whether you have extensive renovations in mind or are considering relocation, we can help you find the best possible deal to suit your objectives and your budget. At UK Property Finance, we work with an extensive network of specialist lenders across the UK, scouring the market in its entirety to find unbeatable deals on all types of mortgages and home improvement loans.

For more information or to discuss your requirements in more detail, contact a member of the team at UK Property Finance today.