Valuing Your Home

Building an extension, converting the loft, improving the kitchen and bathroom, and touching up the property exterior could be seen as the more traditional ways to increase property value. However, the efficacy of these works is open to debate.

Even if you carry out exceptional improvements on all these areas and manage to increase the property value immensely, chances are that the other properties in the area will pull the value of yours down. Location is still the main factor affecting the value of a property. Consequently, it is important to distinguish between value and saleability. Improvements to your property may only increase the actual value by an almost insignificant amount, but may increase its chances of sale hugely.

Extension

The cost of an extension depends on its size. Sum up the price of materials, labour, the architect, and the planning application, and you could find yourself approaching a figure significantly higher than you first expected.
In certain cases, planning permission will not be necessary. Consult the planning service website for more information.
Leave some money aside for emergencies, and for the cost of decorating the extension.
As much as possible, match the extension with the existing property. An incongruous property addition is more likely to reduce saleability than increase it.
Only use professional builders who can be relied on. Membership of the Federation of Master Builders is a sign of quality and sound business practise.
Many properties increase in saleability merely upon receiving planning permission for an extension, without any building work having been started.

Loft conversion

This is widely regarded as the most effective way to add value to your property. Research by Nationwide found that a well done loft conversion can increase property value by over 20%.
Depending on the complexity of your plans, loft conversions are often easier than building an extension.
Although they can be very expensive. For an en suite loft conversion expect to pay above £15,000.
As much as possible, match the extension with the existing property. An incongruous property addition is more likely to reduce saleability than increase it.
Don’t forget that you will also have to build some form of safe and convenient access to the converted space.
Before beginning any work, find out if planning permission is required. Cases where permission will be needed include: if you have already extended your property to the limit of its permitted development, your house is a listed building, or you want to put in a window that could be considered to invade your neighbour’s privacy.
For more information consult the list of useful FAQs on the Loft Shop website.

Extension

Research conducted by the Halifax shows that eight out of 10 homebuyers are willing to pay an average of up to £10,000 more for a property with a garden. This is a great incentive to improve your outside space.
Making your garden immaculate and pristine may give the impression to potential buyers that it will require hours of maintenance and care. Some people will only be looking for an area to relax in.
Clear away litter, mow the lawn and get rid of weeds – these small tasks can have a significant effect on the appearance and charm of your garden.
A garage almost always adds extra value to the property. If it does not, then it is likely to recoup the cost of its construction.

Importantly, with any changes to the property, such as those outlined above, make sure you amend your home and contents insurance accordingly.