Maximising Your Home's Value How To Add Value To Your House

Date Published:

25/06/2008

Adding an extension, fitting a new kitchen or installing a much sought-after utility room can add thousands to the value of your home. However which renovation to your home is the best investment when you are trying to sell your property?

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Adding An Extension

Of all the ways to maximise the existing space in your home, adding an extension is probably the most ambitious, but it can also bring you the greatest rewards in terms of extra room and regaining what you've spent when you sell.

Money Pit Or Money Maker?

Your best bet is to choose between something that joins seamlessly with the style of the rest of your house, or something focal and fabulous. Glass extensions are all the rage and can look fantastic, even on period homes, but don't choose something that will jar and put off future buyers. Brick also gives the option of going for a two-storey structure.

Credit: Dan Duchars/Redcover.com

This modern extension has been cleverly melded with the Victorian house it's attached to by extending the wood panelling used as exterior cladding to the upper floors, and by blending the colour of the original window frames with that of the new ones on both levels.

Profit vs Loss

An extension means a smaller garden, so weigh this against the benefits of extra space- your house may be harder to sell if the inside space is out of proportion to that outdoors. But, most likely, an extension will make your life better and attract future buyers. Try to squeeze in desirable lifestyle extras, such as a utility room or a downstairs cloakroom, to maximise buyer appeal.

The Golden Rule

When adding extra space, look at your house as a whole and decide what you need in order to maintain a balance. In other words, don't add extra bedrooms if the living room is tiny. Extensions, by virtue of being on the ground floor, lend themselves to family-friendly kitchens and dining rooms. The key thing is to have a workable plan in place before you start.

Expect To Pay

Prices vary depending on what you do, but at it's simplest, it could come in at about the same cost as moving to a bigger house. Assuming you'll get your money back is a mistake, as so much depends on the market value of your home.

"You must remember that the average price of properties in the area will dictate the maximum price your property can achieve," says Peter Bolton King, chief executive of the National Association of Estate Agents (NAEA). "If average prices for similar properties are £300,000, for example, it's unlikely that adding an extension will increase the value of your home much above this threshold. Adding an extension should be a lifestyle choice, as it's possible it will cost the same amount to build as the value it adds to your property."

Create Extra Space In The Loft

You can create extra bedrooms, bathrooms and more living space by converting loft space. With starting prices at around £8,000 to £15,000, it's cheaper than an extension, and most lofts are suitable for conversion provided they have a minimum roof height of 2.4 metres. Disruption is minimal, especially in the early stages, as access is usually gained via scaffolding from the roof, and the work should be completed within a month or so.

You'll have to get a fixed stairway installed, so in addition to the new rooms you'll need to allow for the cost of redecorating the hall. The value that a loft conversion will add to your property depends on the finished structure looking integral to the whole house and not just a badly bolted-on afterthought. An extra bathroom is especially desirable, and you may have room for a bedroom with an en suite.

Extend Into Your Basement

Basement conversions can be a great solution in certain circumstances. It's far easier to convert an existing cellar than dig out beneath the house. If you have to dig, you'll probably have to move out during the work and there are structural issues, such as underpinning and party wall agreements, to address. It will also cost more converting an existing cellar and can be on a par with a loft conversion, whereas digging out costs could be well over £80,000, which you'll only recoup if you live in an expensive area.

However, according to The London Basement Company (020 8847 9449), digging a new basement could add 20 to 30 per cent to the value of the property. It will need waterproofing, plus heating and ventilation systems. As soundproofing will be good, the space would be ideal for a den or home studio, and will take at least 12 weeks to complete.

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