How to add value to your home by renovating
Carrying out a loft conversion or extension will not only give you much needed space but may add value to your home, which could help you climb the property ladder.
If you are renovating with the aim to add value to your home, it's so important that you keep focused on the costs and make sure they do not escalate in order to maximise your profit.
We always recommend that before you start planning any project that you have a chat with your local estate agent to find out whether it will add value in your local area. Adding value to your home also depends on the housing market and the economic climate, so be mindful of this if you are carrying out a renovation. Make sure you tailor your style and renovation to suit your target market too.
Convert or extend your loft space
A loft conversion is one of the simplest ways to add extra space to your home whilst adding value. It's also one of the least disruptive ways to extend, with people typically living in the property whilst the work is being carried out.
A loft conversion is a great opportunity to add an extra bathroom and bedroom, which makes your home far more attractive to potential buyers. Even if your space is small, try to fit a small shower room as extra bathrooms are sought after.
A typical loft conversion will add around 11% to the value of your property, however this may be more in sought after areas, especially if you manage to add an en-suite in there too.
Garage conversions are normally within permitted development, which means you don't need to apply for planning permission. As there is limited structural work, it's normally a quick and straightforward way to add living space and shouldn't take more than 3-4 weeks.
Incorporating a bedroom and en-suite bathroom is a good way to add value, with an additional bathroom adding around 6% to the property value.
Before you convert your garage, make sure that the local market doesn't value a garage more than an extra room - consider where you would park your car if you usually park it in the garage.
Build an extension
Adding an extension is a popular way to create significantly more space such as increasing the size of your kitchen or adding an additional bedroom upstairs. An extension can be quite a disruption but the impact on the value of your home can be worth the stress! Consider the ceiling of property prices in your neighbourhood and whether you would be able to add value after such an investment.
Adding a second floor to a single storey extension will cost roughly an additional 50% of the ground floor cost - so consider incorporating an extra bedroom on top of a kitchen extension to add even more value. This is a particularly good idea if you have a three bedroom property and convert it into a four bedroom.
A kitchen extension can add up to 11% to the value of your home and adding an additional bedroom could also add 11%.
Remodel your home
There is often significant value that can be added by remodelling and updating your home. Whether it's a new kitchen, bathroom or creating an open plan space, you can add value particularly if your home hasn't been touched for years.
Many prospective buyers don't want to spend time updating the property and won't see the potential in a run down home. Renovating your bathroom will add in the region of 3% whilst renovating an existing kitchen space will add around 6%.
A full scale renovation very much depends on the area you live in. Be mindful of your area and who you are selling your home to - don't fit a £30,000 kitchen if homes in your street typically sell for around £200,000 - you won't get your money back.
Basement conversions are very popular in densely populated areas where you can't extend into the loft or the garden. The cheapest option is to renovate an existing basement or you can create an existing basement, which will cost much more.
Expect to add in the region of 7% by adding a basement conversion, however this could be far more in sought after areas as you can add a large amount of floor space.
All of the figures quoted in the article relating to the value added to your home have been sourced from the Hiscox renovation and extensions report.
Published: January 22, 2019