How to add value to your property
People do up their homes for various reasons, such as making them more attractive or repairing damage caused by wear and tear. However, adding value to the property is the number one motive. This motive is often fuelled by the desire to sell, now or in the future, to make a profit, whether the intention is to downsize, fund a new home, or develop a property.
Whatever the reason, you will only add value to your property if the money spent on the house is lower than the property’s ceiling value. Just because you spend £20,000 on a property doesn’t mean you will make a profit or even get it back. Most areas have a ceiling or guide price that you should check out before you make a decision. Click here to check the value of other properties in your area and speak to a financial advisor.
Investing in Property Value
large changes to a house hold can increase the value of a property significantly, as long as it is still reasonable for the area. Here are a few of the top large investment ideas.
- Basement Conversion: If your house has a basement that is not yet converted into a living space, get yourself a quote asap! Basement conversions on average increase property value by around 30%. While it may be possible to add a basement to an existing property, the complications of doing this can cause the cost to be very high and take a long time, meaning this may not be a profitable move.
- Loft Conversions: If you can’t go down, try going up! Loft conversions are very popular these days as they can add an extra bedroom and even a bathroom to the house. Once you have been able to get planning permission that is. This is ideal if you have the space for a new stair case. If you have a flat roof, consider converting to a pitched roof!
Garage Conversion: The garage space its self can easily be converted into an additional room, simply by converting the garage door into a brick wall with a window. You can also add a front door and ensuite bathroom to create a studio apartment, creating a perfect care home for elderly or unwell family members looking to retain their independence.
- Barn Conversion: Barn conversions are a great way to add value, especially if they can be rented out. Not only do you have the benefit of profit when selling, but also throughout the year.
- Layout changes: Sometimes properties are built with unusual layouts that do not fit with the way we live our lives. This doesn’t just mean adding bathrooms and moving kitchens, but also building and knocking down walls, moving windows and doors, even stair cases if necessary!
- Porches & Conservatories: Porches are a great little addition to any house, it creates a space where family members and guests can remove outdoor shoes and clothing, limiting the mess inside the house. Conservatories not also serve the same purpose as the porch, but also make great play rooms, offices and relaxation/entertainment spaces. Just make sure you invest in underground heating and a solid roof to help with temperature control.
- Extensions: Many detached or semi detached houses have an entry way to the garden round the side of the house. Extending the house into this area will most certainly add value, whether it is for a garage/utility room, bedroom, apartment or simply to expand the size of existing rooms. You may even prefer an extension at the back of the property!
- Landscaping: There are 2 ways you can use landscaping to add value to a house, the first option is to keep things simple, level ground with grass or slabs. The second way is to turn your garden into a paradise, add a pond plant beautiful trees and flowers, maybe even an outdoor kitchen or summer house!
If you don’t have the time and money to invest in your property, smaller changes can add value to make your home more appealing to potential buyers, and help ensure your property chain is motivated to reach completion.
- New windows & doors
- New boiler & gas safety certificate
- Electrical safety
- Kitchen renovation
- Bathroom renovation
- New flooring and carpets
- Painting / Wall papering
- Skirting & coving
While some of these must be completed by professionals, there are other ways you can increase the value of your property yourself without breaking the bank
If you do not have sufficient savings to invest, you can consider financing improvements with a bridging loan. Bridging loans are large, short term secured loans that let you quickly release equity in your property to increase the overall value. Unlike a mortgage, there are no repayments until the property sells or the loan term ends. You can make the most of your bridging loan by making sure materials, planning permission, and contractors are in place, so work can begin and finish as soon as possible.
If you are ready to make a larger profit in a shorter time frame and move on to your next home, renovating is the key to selling quickly.
Friends Capital has access to lenders with the best bridging loan rates on the market today. Contact us to learn more or apply here.