Whether you are considering purchasing a property that requires renovation, adding an extra bathroom or converting a garage, cellar or loft space – it pays to know which investment will yield the greatest return on investment.
At Springtide Capital, we work closely with lenders and estate agents; we understand that deciding how to invest your money and make the correct decision can be tricky. Nationwide Building Society’s survey provides rough guidance on the returns that could be expected from different types of work, which we hope will help you to make a decision.
The percentages here are an indication and will fluctuate dependant on a number of factors including area, property type, market and demand for that type of property at the time of sale.
Source: Nationwide Building Society
- A cellar conversion
Converting a cellar into a habitable space will increase the floor area in your property, potentially increasing its value by 5-11%; and if you don’t have a cellar, then you can always employ a professional company to dig.
It’s worth finding a cellar-conversion specialist for the job, as special systems are often put in place to consistently remove moisture from the walls and leave a gap between the exterior and interior walls. Although cellar conversions are usually classed as ‘change of use’, which is permitted, any structural changes require planning permission, so it’s best to check before commencing work.
It’s advisable to consider the cost per square foot versus the house price per square foot before commencing any work, so you can ensure you’re increasing the value of the property.
- Converting a garage
The majority of homeowners in the UK do not store their car in their garage, and this unused space can be an ideal way of creating additional space for growing family or renovating a property to re-sell.
You’ll need to check whether the garage walls are suitable for the new purpose, and adding a two-storey extension often requires the garage to be removed, new foundations to be put in place and re-built. An existing garage conversion is usually a permitted change but consult with your local planning department before commencing any work.
- Add one or two bedrooms plus a bathroom with a loft conversion
By far one of the least intrusive conversions is re-modelling the loft space: scaffolding is usually used to provide access to the roof for the entire conversion (in as little as six weeks). A skilled architect will carefully plan the space, stairs and light to maximise the usable space. There is an opportunity to add one or two bedrooms and a small bathroom in most loft spaces.
Planning permission is not usually required. However, you should consult your local planning department to check, as Dorma extensions in conservation areas do require planning.
Henry Knight, Managing Director, Springtide Capital commented: “Renovating a property that is structurally sound can yield a good return in most cases; we often work with property owners to obtain funding to renovate or extend a property. You may need a valuation to demonstrate that value will be added to the property, have a good credit rating and satisfy affordability criteria to obtain approval.”
One of Springtide Capital’s dedicated mortgage consultants would be happy to discuss any projects you may have that require additional funding; you can call us on 020 3040 4400.