Reinvesting and Renovating Your Current Residence Could Be Wisest Financial Move

If you're finding it hard to sell your home, there may be many reasons. Similarly, there is another option. By remortgaging your home, you may be able to afford home improvements, such as an extension, which may make you comfortable enough to be happy to remain where you are.

With mortgage lending to new homebuyers at an all time low, it is extremely hard to get the property sold. However by extending your property, or converting a space that is rarely used, you can enjoy your home once again and eradicate the need to sell. If you're short on space, think about whether you could convert the garage into a new room, or add new rooms by extending the back or side of your home.

You might find that you are part of a growing trend across the UK if you chose to renovate your property. Editor of Home Building and Renovating Magazine Jason Orme said there were "in the region of 100,000 to 200,000 projects undertaken each year."

Depending on the type of project you have in mind, the cost and length of time it takes to complete could vary massively. Extensions and refurbishments cost more, for example, than a simple lick of paint in each of the rooms.

In terms of property extensions, you should plan for the project to take a number of weeks, and possibly even up to six months depending on the size of the project. Adding a new bathroom for instance may take longer due to plumbing requirements.

With the amount of lending for new mortgages decreasing in recent months, there has been little in the way of active movement with property purchases, which is one of the reasons that people are onw looking to improve their homes and stay put rather than go through the rigmarole of trying to sell in a stagnant market.

Remortgaging your home can help to open up some of the finance available that is locked away in your property, which can aid you in renovating your property to make it more comfortable, and to make it yours. Not only that, it is an investment, as the value of your property would also increase if you extending or converted part of your home.

Value is added generally by increasing the size of the property, adding rooms, converting unused space and generally improving on the property so that it is bigger, better and more beautiful than it was before. Of course, a well kept and fresh home will attract more buyers in the future.

Keep in mind that costs for building extensions or converting a room differ from builder to builder, so make sure you do your homework before agreeing to any prices. Ask friends and family for recommendations, and don't be afraid to barter on the cost to save yourself some pennies.

Keep in mind too, that interest rates are due to increase in the latter part of 2011, and when they do, remortgage deals that are cheap will be harder to come by, as all lenders set their mortgage interest rates by the base rate in the UK.


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Timothy Frodsham writes for JustRemortgages.com one of the UK's top sites for the latest remortgage rates and best remortgage deals.