There are countless do’s and don’ts when it comes to renovating or tweaking parts of your home for financial gain. Whether you want to add value to your home long-term by investing in it now or are thinking of selling up sooner, certain amendments will add different increases in property value.
The majority of projects tend to add around 5% to 30% onto the value of your home and, more often than not, the most valuable and lengthy renovations are towards the higher end of the spectrum. Whether you are a residential renovator, potential seller, or property investor, the 10 home improvements below could set you on a path to financial success. Please note, all additional percentage values are statistical assessments and are not guaranteed.
Obtain Planning Permission – up to 10%
Big home improvements and building work is expensive and many do not have the means to invest. Buyers looking for a project will undoubtedly pay more for a property that has already been granted planning permission as it is a level of guaranteed security. For those who do not have the finances to undergo a renovation project, obtaining planning permission is the perfect way to boost the value of your home up to 10%. There is usually a fee involved, unless you live in a listed building.
Splitting a Large Property into Flats – up to 30%
Flat conversion is a particularly popular option in cities, especially those with an abundance of townhouses. This option maximises rental income in the short-term and will generate profit on sale in the long-term. This option tends to stem from property investors who purchase townhouses with the sole purpose of transforming the building into apartments. Although building costs can be high, solicitors utilised regarding leaseholds, and regulations followed stringently, you could make up to 30% on top of the purchase price.
Basement Conversion – up to 30%
Those living in homes with cellars would not need to obtain planning permission from the council to convert the space. Transforming a basement into a liveable space is considered as a ‘change of use’ and nobody needs to be informed unless a kitchen is being fitted. For this reason, it is one of the most economical home improvements for the greatest potential return, usually up to 30%.
Conservatory with Extension – up to 10%
Standalone basic conservatories on their own can add up to 5% on to the value of a property. However, conservatories with an additional extension, such as bedroom or study utilising the roof space of the conservatory extension can increase this to 10%. Incorporating an extra toilet, boot room or utility room into a conservatory plan itself can be beneficial. Remember to not encroach on the garden too much and strike the correct balance.
Revamped Bathroom – up to 5%
Bathrooms that look outdated and tired are unattractive to potential buyers. Furthermore, avocado and pink suites reminiscent of the 70s are also a no-go if you want to add an extra 5% on top of your property’s current valuation.
Bathroom revamps are expensive and the interruption to household life is tiresome for many. However, installing a white and modern suite will hike up the selling price and eradicate any hesitancy from potential buyers.
Open Plan Living – up to 6%
Long gone are the days of separate dining rooms, kitchens and living rooms. Open plan living is very much the trend and popular with buyers. Demolishing some walls on the ground floor of your home, advisably with the help of professional builders, will increase saleability of homes by making them appear larger and lighter. Undergoing an open plan transformation can top up sale values by 6%.
Loft Conversion (Bedroom) – up to 15%
Adding an extra bedroom to any property will increase the value, but a loft conversion bedroom with en suite can see an increase of up to 15%. Essentially a studio flat, minus a kitchen, lofts converted into bedrooms are very attractive, particularly for the family with older children who require independence. The majority of lofts can be converted easily but it is best to get a builder or architect to check prior to any work being carried out. Like basement conversions, work carried out in lofts does not need planning permission. You can always run any concerns past your builder.
Garage Conversion – up to 15%
Most UK garages are used as storage as opposed to housing a car. For this reason, it can be best to dispose of all the junk and transform a garage into a living space. Guest bedrooms, snugs, studies, and home gyms are all popular garage renovation uses.
Like loft conversions, garage conversions that are effectively small studio flats are sought after by those with dependents who require privacy. Although costs can escalate depending on the type of garage conversion you are undertaking, look to see your house valuation increase by up to 15%.
Extended Kitchen – up to 15%
Side return extensions are one of the most commonly asked for home improvements in the UK. More often than not, they are used to expand kitchens and/or insert a utility space. Larger kitchens that are neutrally decorated are the best for catching buyer’s eyes and can add up to 15% extra on the sales value of the home.
Revamped Exterior and Garden – up to 10%
Kerb appeal is a real thing and properties with flaky window frames or unkempt gardens are an instant turn off. First impressions are important and decorating and revamping garden spaces and keeping on top of outdoor maintenance can add up to 10% onto the value of a property.
Gardens do not need to be rich with flowers and the lawn does not need to resemble the finest golf course. Everything should be easy for you to maintain until your sell or rent out the property.
Percentages into Practice
Whilst percentages deliver a rough idea of the effect home renovations can have on property values, seeing example figures terms can further drive home the financial benefits these projects can deliver. Using an example of a property valued at £250,000, sellers can raise their valuation by £75,000 to £125,000.
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