According to uktv.co.uk, around 25% of all home renovation projects end up going over budget. As a homeowner, you are obviously keen to add as much value as possible to your property when selling it but there are a number of things you need to consider.
5 Things You Need To Look Out For
Planning Permission: Once your project goes beyond a certain scale (see legal considerations below), it will be necessary to get planning permission. This can be a time consuming process and it also costs around £1,000.
DIY Pitfalls: Legally, you need to be qualified to complete certain DIY jobs such as electrical wiring for example. Additionally, an estimated 14% of people will damage their property doing DIY jobs with the average damage caused believed to be over £340.
Cowboy Builders: According to Santander Insurance UK, almost 20% of UK homeowners have suffered from poor quality work and fixing these issues causes over £1,500 worth of damage on average.
Compare Quotes: Always look for 3-5 quotes and base your final decision on experience rather than cost.
Project Completion Time: On average, a loft conversion can be completed in 4-6 weeks while a kitchen conversion can take 8-10 weeks. A conservatory should also be finished in around 4 weeks depending on planning permission requirements.
The Cost of Renovating/Extending Your Property
Obviously, the total costs associated with any project will depend on its complexity. However, a good marker is £1,000 per square metre for an average extension. Below, we look at a list of potential costs for different projects.
The estimated cost of a purchasing and installing a conservatory in the UK is just over £8,700.
A 4×2.5m ‘lean-to’ conservatory will cost around £6,000 while a 6x3m model should cost an average of £6,700.
You may also need blinds for your conservatory and these can cost anywhere from £80 to £120.
Interestingly, the price for loft conversions varies throughout the UK. Scotland and South-East England are the most expensive regions whereas Northern Ireland is by far the cheapest. We give the lowest and highest prices below:
20m2 Standard: £8,600-£12,000
20m2 Deluxe: £19,400-£27,000
30m2 Standard: £9,500-£13,300
30m2 Deluxe: £20,000-£28,500
How Much Is My Extension/Renovation Worth?
Back in 2010, Phil Spencer of Location, Location, Location fame claimed you could double your money on a loft conversion; in his example he said that a £20,000 conversion could add £40,000 to your property’s value. He also suggested that a conservatory could add 7-11% to your home’s value.
Although the face of the property market has changed exponentially in the last four years, it seems as if loft conversions and conservatories are still ‘old reliables’ when it comes to adding value to your home. A 2014 Nationwide study suggested that a loft conversion or extension could add as much as 23% to your home’s value. So if your property is worth £400,000 right now, spending £20,000 could add an incredible £92,000 to your home’s value in theory!
While we feel this level of profit may be overstated, there is no doubt a loft conversion reigns supreme when it comes to adding to your property’s sale value. Incidentally, the same study showed you would add 5% to your property value by adding an extra bedroom.
Good new also for owners of classic Victorian or Edwardian homes and add central heating, this will increase your property’s value by up to £4,000.