The last 18 months or so may have made you realise that you need more space for both you and your family, and many people are choosing to stay put rather than move.
The upside is that your current property may have increased in value since you took out your existing mortgage deal. If that's the case, it may be easier to borrow extra money (if needed) to help create the space you want.
Property price rise
For example, if you're coming to the end of a 5-year mortgage deal, the average UK house price in December 2016 was around £206,000; by December 2021 it was around £255,000 (source: Nationwide House Price Index, December 2021).
If you borrowed 70% LTV in 2016, by 2021 you'll likely be under the 60% LTV threshold, which opens up better deals. Alternatively, you might decide that you're comfortable with a 70% LTV deal, thereby releasing around £30,000 or more of extra funds.
Of course, taking on extra borrowing may not be the most suitable route for you. And if you remortgage before the end of your current deal period there may be financial penalties. So you'll need to weigh that up against the alternative cost of moving home to secure the space you need.
Build up or build out?
Extending or converting is the most obvious way to secure more living space. And while there are usually planning and building regulations to consider, the planning side can be less onerous these days if you stay within an accepted footprint and keep your neighbours onside.
Extension
An extension could create an extra room for an office, or simply give your kitchen the additional space you've been craving. Rough costs: according to mybuilder.com, a standard 6m × 4m extension could cost in the region of £26,000, £34,000.
Loft conversion
A loft conversion can create a master bedroom with en suite, an office, or simply an extra room (or two) to make sure everyone isn't always on top of each other.
Rough costs: according to mybuilder.com, this costs an average of around £40,000.
Wide-ranging renovations
Alternatively, you might want to do more, extend and update the kitchen, rewire, install a new heating system, fit new windows, and so on, to make the home layout work as well as possible for you.
Rough costs: according to Checkatrade, for a 3-bed property this might cost in the region of £38,000, £74,000.
Does it add value?
Generally, yes. With an extension or loft conversion you're delivering more space, which should make your home more marketable.
Sources: mybuilder.com and Checkatrade, both September 2021. You may have to pay an early repayment charge to your existing lender if you remortgage. Your home may be repossessed if you do not keep up repayments on your mortgage.