For many, improving your home is a balancing act. First, to identify and cost out what works best for you, and your family, and then how that may play out in adding value to any future property sale.
Build-up, out or down
Adding extra space to your home tends to be the most financially lucrative – whether that’s building upwards, with a loft conversion, adding an extension, installing a basement, or converting the garage.
According to the Royal Institute of Chartered Surveyors (RICS), more than a million homes in the UK have got loft conversions. With an estimated growth of 10%, this market has no signs of slowing. Estate agents calculate that an average loft conversion costs around 1/3 of the price of moving to a property with an extra room. Also, turning your loft into an extra bedroom with a bathroom could potentially see the value of your home rise by as much as 25%.
Another development that reflects our changing live/work lifestyle, is to add a ‘home office’, either as part of the property, or perhaps as a garden office.
And many, of course, may want to modernise the kitchen – a focal point for many homes – and take advantage of the increasingly innovative storage and appliance solutions.
Consider the basics
Before you embark on obvious pleasing developments, consider any structural problems, such as a leaking roof, or that the electrical system is sound, and get them sorted first, as it would be a lot more disruptive if that’s done after the event.
Another option to consider is that you could simply cover the cost (and time) of securing planning permission, ensuring that it’s still in place when you come to sell, as that too may add value to your property.
But remember, no matter how much you spend there is likely to be a ceiling value that’s partly framed by local property prices.
Getting the funds
Depending on the amount you require, two potential routes are remortgaging to secure a larger loan amount, or seeking an additional loan, such as an unsecured loan or a second charge on your property.
Conversely, if you feel you’d struggle to raise more funds, then assess your current deal. If you’re on your lender’s Standard Variable Rate, then the savings each month from seeking out a better deal, may go some way towards helping to cover the costs of the smaller jobs around your home.
If you are keen to raise funds to implement your plans, do get in touch.
Reference – BL069 – Jul – 2019