Should you move or improve?

Growing families, changing circumstances or just simply the need for a change are the key reasons for a new home. In many cases it is significantly cheaper to extend your own home rather than spend money on a bigger house, stamp duty, estate agent fees and more. WHAT'S THE PROBLEM? Property values have risen significantly across all housing significantly across all housing types in all areas since 2000. This has had the effect of increasing the gap between smaller and larger properties. As the gap between smaller and larger properties. As the gap between each tier on the property ladder widens, moving to a larger property becomes less affordable and the financial balance shifts in favour of improving rather than moving. You can get an idea of true market prices by checking how much homes in particular areas have recently sold for.

Go to www.nethouseprices.com. Always bear in mind the ceiling price of properties in your area, though. It doesn't matter how cutting edge your kitchen extension is, if you've spent £40,000 on it but you can only squeeze £20,000 more out of the property's value, you'll be shooting yourself in the foot in financial terms. MOVING COSTS The cost of moving home varies according to the value of the home you are moving from and the house you are moving to. You will pay Stamp Duty Land Tax (SDLT) on the purchase price of the home you are buying, payable on completion.

Of course, if your home costs less than £125,000 then it falls below the SDLP threshold and will be exempt from these charges. Value of property Tax £125,001 - £250,000 1% £250,001 - £500,000 3% £500,000+ 4% In addition you will pay: A fee to the estate on the sale of your own house (charged at varying rates between 1-3% of the sale price you achieve). Legal fees on the sale and purchase of your home (varying between £700-£1,000).Standard search charges (between £50-£100).The cost of removals (usually around £400 a day), but this a DIY job.