In the 1980s, a fast-moving property market prompted homeowners to move every eight years. Nowadays, research suggests the average UK homeowner will stay in their property for 21 years.
High house prices, the replacement of Stamp Duty with increasing rates of Stamp Duty Land Tax (now LBTT in Scotland, LTT in Wales) and the sheer cost, have discouraged many from moving. With more people putting down roots for longer, we’re spending more money on improving our current properties. If you do decide to embark on a project, it makes sense to choose something that is going to add value to your home in case you do decide to move on one day. The projects listed below are likely to add the most value to your property
Type of improvement Potential value added
Cellar conversion 30%
Converting your garage to living space 15%
Kitchen extension 15%
New bedroom via a loft conversion 15%
Adding a conservatory to maximise living space 10%
Improvements to the front of the house and garden up to 10%
New bathroom 3%–5%
Open plan kitchen/living room 3%–5%
Before you get going…it may be useful to pause and consider the following
– Ensure you’re insured for accidental damage and contact your home insurance provider to check you can make your planned changes without invalidating your policy.
– Organise your paperwork to make sure it’s in order and that you have the correct certification.
– Bring in the professionals to avoid DIY disasters.
– Avoid personalisation and bright colours to widen your home’s appeal and saleability.
– Preserve bedroom space by losing a bedroom you will reduce the value of your property.
– Come to us…if you’re looking to finance your home improvement project by remortgaging or getting a second charge loan, get in touch.
Think carefully before securing other debts against your home.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Source: Quilter Financial Planning – Essentially Mortgages Q3 2020