According to recent reports, the government has reduced certain rules which surround home extensions. You must be wondering how much a home extension would increase the value of your home! For a limited period of time, homeowners are definitely allowed to extend their homes with larger-than-life extensions without having to ask for planning permission from the local councils. This rule also boosts the businesses as the offices, shop and industrial units would expand considerably without having to ask for approval from the governing authorities. You will be rather happy to know that it is possible to add at least 25% to the value of your property and this new rule has been the cause of a surge in sudden home improvements.
As per Nationwide Building Society, all those homeowners who take a plunge into enhancing or improving their homes could make considerable profits. Depending on the scale and scope of the project, extending your home could indeed add a lot of value to your home. Nationwide in fact calculates the increase in the value of an extension or some loft conversion by 25% (a quarter), based on an average 3-bedroom British home. If you’re well acquainted with interior designers, you could assume an increase in the floor area by 30 square metres in order to create a double bedroom and a washroom.
Some interesting and exciting improvements you can opt for
There are some big home improvement projects which can add a lot of value but there are some smaller ones too. Adding another double bedroom where you have to extend the floor area by 13 square metres, you can increase the value of your home by nearly an eighth which is equivalent to 12%. By designing a new bathroom, you could increase the property value by 6% and by increasing the space on the floor; you could increase the property value by 10% on an average.
Such home improvements won’t come free of cost and hence you should be aware of the fact that such major extensions and improvements can come at a considerably huge cost. As per estimates of Nationwide, adding a single-storey to your home can cost you £23,000 which means £1000 per square metre. And if you opt for a two-storey extension, the price that would require paying would rise up to £76,000. Hence, you need to buck up with your finances if you wish to add value to your home as well.
Is it possible to borrow money for extending?
As there is a sudden rise in the number of homeowners looking forward to a property development, Nationwide is banking on this situation and is helping such homeowners with low interest rate monetary advances for those borrowers who are eager to increase their mortgage loans to pay off their home improvement projects. Majority of the other lenders charge hefty interest rates on a limited product range but Nationwide allows the borrowers to take loans from its total range of mortgage loans and also offers a 0.10% discount for the current customers who already have a mortgage loan.
Some interesting ways of adding value to your home
Apart from basement extensions, if you’re looking forward to some other ways of sprucing up the value of your home in order to get a good resale value, here are some ways that you may take into account.
- Fix the basic structural problems: Before you start planning some cosmetic improvements like extending another storey or building new bathrooms, you can first take a look at fixing some of the most basic structural problems. The cosmetic solutions that you opt for can hide the problems from the buyers but they are not going to fool a valuer or an appraiser.
- Add a central heating system: If you have a central heating system, update it and if you don’t have one, add it to your house. This step will add enough value to your home than the costs. By most home buyers and mortgage values, this is considered as a vital and necessary step. If you can hire a plumber and add a central heating system to a 3-bedroom Edwardian or Victorian house will cost you £3000-4000.
- Upgrade the services: Updating the services like plumbing and wiring might become a tedious job but at the same time it is very important. Make sure you update each and every electric points and devices that you have in the house. The wires have been there for years now and hence you should consider rewiring. Old pipe work can also be dilapidated and hence if you wish to avoid the trouble of burst pipes, you should take care of each of such details.
- Transform the garage into a living space: It has been surveyed that about 90% of the garages in the UK don’t have a car in it and hence this is not the way to waste a space. Adding value to your home with this approach can reflect good planning and if the garage is attached to your house, you might have to spend £10,000- £20,000 to convert it into a room.
- Consider a home extension: Last but not the least; you can opt for home extensions. Although this is not an affordable way of adding value to your home, yet if you have saved enough money in your account, you can definitely opt for this. Ensure that your plans for home extension are realistic and reasonable as compared to the others. Spruce up your home’s value by at least 24%.
If there’s a need for asking for permission, you should be realistic enough as that will help you do more good than bad. Don’t be too ambitious as that will have an adverse impact on the deal. Do your homework at home and speak to experts and professionals so that you know what exactly you’re about to do to your home. Don’t forget that all projects are not suitable for all homes. Hence, be choosy!