Ever considered turning your garage into an annexe or granny flat? We look at the financial side and ask whether you'll make your money back when you sell the property.
This type of question is often asked. Builder often insist you can never lose money in bricks and mortar, but is real life ever so clear cut? Not necessarily - unless you live in a persistent growth area such as London.
We recently looked at a potential loft conversion where the value gained would only cover half of the cost of the work. This was due to the famously stringent building regulations, which made the job much more elaborate than the client had originally envisaged. The scale of the work involved had to be balanced against the ceiling value (no pun intended) of the house. The reality was that terrace houses in that post code, and many others, have a top asking price regardless of their contents.
One way to get a rough value of what your extension would be worth is to look around local estate agencies for properties of the same size or similar to your theoretical finished property. Having said that, as you will be creating a 'granny flat' attached to the house, you may struggle to find similar properties. In that case, discuss your dilemma with a couple of local estate agents - they should be able to give you at least a guesstimate.
Try to be open-minded if, while researching your local area, you find houses that already meet your needs for an asking price of less than the theoretical value of your house now, plus your top estimate. Try to focus less on the value of the property, and more on how best to meet your lifestyle requirements.
