Are you thinking of having a house extension performed on your home, because you need additional space, or because you want to increase the value of your property? Research carried out by the leading building society Nationwide showed that having a house extension clearly makes your property worth more when it comes to selling.
How much does an extension add to a property?
The exact value an extension can add will vary from property to property and the type of extension, also the estate agent and average house prices will also impact how much value adding an extension to your home will give. Figures quoted from various research show that extending a standard 3-bedroom home and adding a fourth bedroom and a bathroom can increase your property value in a range of 10% to 23%.
What affects the value of adding an extension to your home?
There are many variables that have to be taken into consideration if you want to estimate how much an extension adds value to your house. Factors that will affect the value include:
- Construction costs
- The type of the extension
- Size of the extension
- Where you put the extension
- If there are any problems with planning permission
- The costs of the furnishing and fittings
Loft conversions are the best home improvements to add to your home as they can increase the value of your home by 15-30% – however, depending upon the state of your roof they can be the most expensive home construction projects. A single-storey rear extension on the other hand will add around an extra 10% to your property. Adding a double-storey extension is more profitable as you are adding more square footage, which is part of what the value is calculated on. They can add from 12-20% more value. So, when you are planning your house extension you must make sure that you don’t spend more on the extension and over-value your house when it is finished. Spending too much on the extension means it is unlikely you will be about to recoup your money when it comes to selling. In fact, it is actually possible to make your house worth more than you could ever sell it for!
As we have already established, the amount of value adding an extension to your home will vary considerably. The location of where you live also plays a role in how much your house is worth. Before you start it is a good idea to find out how much your home is worth as it stands, your local estate agent can help with this. From that value, you can calculate how much you can spend on the extension. Local architects as well as estate agents should be able to give you an estimate of how much value your extension will add.
Extension options to add value to your property
Whether it is at the rear or the side of your home that you want and need more space, getting an extension is an excellent, cost-effective option. Some of these extensions will require planning permission from the local authority.
- Loft conversions, these types of home conversions are very popular; they are commonly used to create an extra bedroom and ensuite.
- Single-storey extensions are the most common type of extension performed in the UK. They are often used to extend kitchens and living rooms, increasing the amount of family living space. With open-plan living being very popular these extensions are the most affordable way to get extra space.
- Double-storey extension, these extensions give you a huge amount of additional space both in the general living area and extra bedrooms and bathrooms.
- Conservatory, for homeowners on a tight budget, conservatories are a popular choice. Conservatories add less value to your house than extensions.
- Garage conversion, this is potentially the best conversion you can do to get maximum value on your property, especially if you create additional bedrooms.
Things to keep in mind…
To make sure your house extension doesn’t end up costing way more than the value it adds to your home, here are a few important points to consider: Check the ceiling price for similar properties in your neighbourhood, it is very unlikely that buyers will pay more than that figure. Compare the budget to the value-added and make sure the estimated cost of the extension is lower than the potential added value. Think about all the possible problems, like having to make deeper foundations, or delaying anything that may make your extension cost more money. An important thing to note is that quality costs more, but will add more value in the long run! Make sure you hire experienced professionals that will deliver high-quality construction.