As a homeowner, deciding to sell your property is a significant decision, often influenced by various personal reasons such as changing finances, additional family members and proximity to work, schools and loved ones, alongside market factors and house price trends. However, you don’t want to rush into selling your home before you are ready, particularly if there are alternative options which might be a better solution.
Below, we explore five alternative options when you’re not ready to sell yet, from extending or changing your home’s layout to renting out your property and financial opportunities such as bridging loans, remortgaging, and home equity release.
Extending or changing the layout of your home
One of the most popular alternatives to selling your current home is to extend or remodel the property. This approach can make it more suitable for your lifestyle now and in the future without the hassle and additional expense of moving. Whether it’s adding an extra bedroom, expanding the kitchen, or converting the loft or garage, these changes can enhance your living space and improve your home’s functionality. Not only does this make your home more comfortable for your current needs, but it also has the potential to increase the resale value if you do decide to sell your home in future. Just make sure that along with meeting the relevant planning permission and building regulations for your area, you have also carefully costed your remodelling plans to avoid going over budget or spending more than you could ever recoup when selling.
Renting out the property
If you’re considering a move but not yet ready to sell, renting out your property could be a smart financial move. This option allows you to retain ownership and potentially benefit from property value appreciation while also generating rental income to cover on-going expenses like mortgage costs. Becoming a landlord does come with responsibilities, such as property maintenance and tenant management, but it also provides a steady income stream and can be particularly beneficial if you are moving for work or personal reasons and don’t want to commit to buying a property in a brand new area straight away, or if the relocation is likely to be on a temporary basis.
Bridging loan
A bridging loan is a short-term financial solution that can be useful if you need to purchase a new property before selling your current one. These loans bridge the gap (hence the name!) between buying a new home and selling your existing one, providing the necessary funds to proceed with your purchase without the immediate pressure to sell. While bridging loans are generally more expensive than traditional mortgages, they offer flexibility and can prevent the need for a rushed sale of your own home that might not yield the best price. If your own buyer pulls out at the last minute and you are going to miss out on a once in a lifetime property purchase, or have already spent a considerable amount for things like surveys and legal fees, then a bridging loan may be the right option for you as long as the payment terms and interest rates are achievable.
Remortgaging
Remortgaging involves switching your current mortgage to a new deal, either with your existing mortgage lender or a new one. This can be a way to take advantage of better interest rates, release equity from your home, or adjust your mortgage terms to better suit your current financial situation. By remortgaging, you may be able to reduce your monthly payments, free up funds for renovations, or consolidate other debts. It’s a practical option for those looking to improve their financial standing without selling their property. Consult a mortgage broker to find out the best deals available and make sure you can provide an up to date property valuation for your home as its value is likely to have changed since you bought it, particularly if you have undertaken any significant extensions or renovations to the property.
Home equity release
Home equity release is another alternative for homeowners, particularly those aged fifty-five and over. This option allows you to access the equity tied up in your home without having to sell it. You can choose between a lifetime mortgage or a home reversion plan, both of which provide a lump sum or regular income while allowing you to continue living in your home. Home equity release can be a valuable tool for funding retirement, making home improvements, or covering unexpected expenses and still allow you to leave a nest egg for future generations in many cases. There are a number of companies offering home equity release, so make sure you do your homework to find the best option for you.
Regardless of which alternative you choose, or if you do decide to sell your home sooner rather than later, obtaining an up-to-date valuation of your property is essential. A current valuation provides a clear understanding of your home’s worth in today’s market, helping you make informed decisions whether you’re considering renovations, rental pricing, or the terms of a financial product like a bridging loan or remortgage. Professional valuations can reveal how much equity you have, guide your financial planning, and ensure that you’re making the best possible decision for your circumstances when it comes to selling now or in the future.
