Financing changes to your home

Do you need more living space? Could extending your existing property be a realistic option? So here’s the question – move or extend? Financing changes to your home such as a remortgage or equity release can make either choice a reality.

There are several questions you need to ask yourself to understand whether a home extension is a viable option for your circumstances. These include:

How attached are you to your current home?
You may have put down roots and be really happy where you are. If so, the benefits of an extension might outweigh those of selling up.

Will it add value to your property? 

It’s important to look at how much an extension will cost vs how much value it will add to your home. For example, a downstairs extension will result in a smaller garden, with the added value of extra indoor
space potentially cancelled out by the reduction in garden size.

How long do you plan to stay?
It can be several years before you reap the full financial benefits of an extension. If you are planning to
stay in your home in the medium to long-term, it is likely that your extension will become more
financially lucrative as prices rise over time. However, it may not be worth it if you’re planning to sell up
anyway in the next couple of years.

So move or extend? think about financing changes to your home – how will you fund the project? We can help you consider your financial options your property?

Education isn’t a cost, it’s about investing in your children’s future. As the summer school term ends, this time of year is an apt reminder of the investment that schooling requires not only in terms of commitment by the child, but the real price of it to parents and guardians:

  • Average cost of sending one child to ‘State school’ from year 1-11 is £1,579 a year, which equals £17,374 in total (Provident research of 2024 parents in 2020)
  • Average fees of a private school (day only) are £14,289 a year (Independent Schools Council Census 2019
  • A University course costs on average £18,540 a year (National Student Money Survey 2020)

‘State schooling’ still requires items such as:

  • Uniform (£70),
  • Tech (£85),
  • After school clubs (£106),
  • Packed lunch (£585),
  • Commuting (£60),
  • School social events (£55), and
  • Childcare (£220) per year.

Research shows that the most expensive years are year 8 and 11 (due to school trips, a cost we saved during Covid). These figures vary not only on a personal basis, but regionally:

  • London – £21,298
  • South West – £14,505
  • Wales – £15,573
  • West Midlands – £15,526

With ‘Private schooling’, all the above ‘extras’ of State schooling will still apply – although school outings, after school clubs and uniform are likely to cost more. On average, you can expect to pay the following fees per term:

  • £11,565 for boarding,
  • £6,402 for a day pupil at a boarding school, and
  • £4,763 for a pupil at a day only school.

These figures are the average per term across the 1,307 schools that participated in the census. There is also a non-refundable ‘registration fee’ and some schools ask for payment for the year rather than term by term. These can reduce with scholarships, bursaries, sibling discounts, and up-front payment. It is worth pointing out that Private school fees have risen faster than inflation every year for the past 10 years, so be prepared for further increases in the future

For University, a typical three year course totals £55,620, The cost of tuition for the majority of students in the UK is approximately £9,000 a year, plus the average annual cost of living of £9,540.

To help with tuition fees, specific tuition fee loans cover the full cost of the course, and won’t have to paid back until the student is earning above a certain level.

There are also ‘Maintenance loans’ and ‘Student Grants’ that are means tested to help with living costs.

Pre-funding and saving for this, using the many available tax shelters, can help with all of the above. If you want us to demystify the technical jargon and find a way to help you plan for your children/grandchildren’s future education, please get in touch. we can help you with investing in your children’s future.

Many of us have seen challenging and unexpected changes to our circumstances over the last few months and it’s possible that your financial plans no longer match your lifestyle and needs. Here are some points to remember to help keep you financially fit.

Review your budget

Regularly review your income and outgoings, particularly if your circumstances have changed. You may have found yourself in a fortunate position to be able to save more, due to reduced outgoings. Any expensive debt should be cleared as a priority.

Strengthen your safety net

For you and your family, protection policies such as income protection, critical illness cover and life insurance should be considered. If you already have policies in place, we can help you to review them to ensure they still offer the most suitable cover at a competitive cost.

Look to the future

It’s important not to let short-term events divert you from your plans for the future. Investing for the future remains imperative, no matter what age you are, whether this is via a pension, Individual Savings Account, or elsewhere.

Ongoing advice

If you think your plans may have been affected by changes to your circumstances or you have any other concerns, talk to us. We can help you see the bigger picture, evaluate your options and help keep you on track for the future.