Top 15 Home Value Increasing Improvements - Extensions
Housing-Market / UK Housing May 26, 2014 - 06:51 AM GMTBy: Nadeem_Walayat
Moving home can be one of the most stressful times in ones life, therefore before one considers moving it may be better to fully evaluate the potential that your existing home presents in terms of a myriad of possible home improvements that not only make your home more livable but also add significantly more to your homes value than the amount spent.
In today's age it is taken as granted that your home has both double glazing and central heating installed, if for some reason you have been putting off installing either of these than that will be a huge red mark against your home when you put it on the market as it will ring the warning bells amongst viewers that there could be much more wrong with your property. Similarly this guide assumes that if there are any serious structural issues such as subsidence then these will already have been dealt with before hand.
Therefore for the few homes still lacking central heating and double glazing then that should be the starting point for your home improvement plans, especially as both will result in ongoing saving money on energy bills.
As a guide the estimated increase in value in terms of the percentage of costs incurred are also listed i.e. 100% add to the value of your home means 100% of the costs incurred will likely be be recovered so break even, whereas 50% would mean only half the costs are likely to be recovered thus a loss.
Also note that the more extensive works such as extensions and loft conversions factor in the use pf reputable builders which incur an additional VAT charge of 20%, therefore the pricing will be higher than many home owners originally expect as they will probably have failed to take VAT into account.
Another point to make is that building works usually do end up costing far more than the original estimates due to unforeseen circumstances and changes to requirements, therefore you should also add an contingency for all works of at least 15% which I have NOT included in these calculations. And finally these calculations are for the outside of London, whilst in London, you should typically add 1/3rd to the estimated cost.
The bottom line is where home improvements costs are concerned add 20% for Vat and a 15% contingency as the costs will likely significantly exceed your initial estimated budget.
1. Home Extensions
Percentage added to home value of 150% to 200% of typical costs incurred. Typically £35k spent can convert into as much as a £70k increase in value.
The best way to gain extra living space for most home owners is by extending ones home. Home extensions whilst tending to cost the most can by far yield one of the greatest percentage increase in a homes value that depending on the quality of works can yield 2 to 3 times the cost in terms of increase in value and therefore is at the top of the home improvements list.
Home extension plans can take one of two routes of either a full planning application or the usually the easier option of extending under permitted developments that allows home owners to improve their properties without the need for planning permission. Though despite this it is still wise to run home extensions by your local planning department first.
What to Consider
Plans to extend your property depends on your living space needs, finances and the area you live in, for a higher priced and more in demand location will result in a far greater increase in value than a run down inner city location that may not even result in covering ones costs. So when contemplating extending properties keep in mind the ceiling price for similar properties in your area and not spend to price your property more than about 10% above the highest sale price for similar properties in your area.
Key Points:
- Finances and estimated costs, professional fees and 25% contingency because there will be a number of unforeseen costs such as replacement of your existing boiler to cope with extra load on the central heating system following extensions.
- Will the local market bare the increase in price.
- Extend under permitted developments or seek planning permission.
- Duration and amount of disruption involved.
- Impact on neighbours.
Permitted Developments
Whilst a full planning application can be daunting, costly and time consuming, still extensive works can be undertaken what fall under permitted developments such as double and single storey back and side extensions.
The limits for singly story extensions have been doubled for a 3 year period from May 2013 to May 2016.
Single story extensions
- Terraced - 6 metres
- Semi-Detached - 6 metres
- Detached - 8 metres
Double Story extensions
- Terraced - 3 metres
- Semi-Detached - 3 metres
- Detached - 3 metres
Key Rules
- Not covering more than 50% of the area around the original house.
- Not extending forward of the original house.
- Single story extensions under the new permitted development of 3-6m or 4-8m are subject to neighbour consultations.
- Two storey extensions at least 7 metres from the rear boundary.
This amounts to a doubling of previous permitted developments. And depending on how well the extension fits in with your existing property can typically add at least double the cost to your homes value as long as you do follow the recommendations of professionals and not for instance attach a dark flat roofed box to the back of your house.
However some pointers you need to consider before undertaking permitted developments -
- Taking the impact on your neighbours into account.
- Use of professional services such as an architect to get it right first time.
- Has your home already been extended? Possibly by the previous owners.
- Discuss your plans with your local council to ensure that you would not fall fowl of planning rules.
- Check your deeds for any covenants or any restrictions which could cause an issue.
If in doubt put in an application for planning permission.
Planning Applications
If your finances allow it then extensive works can be undertaken following the successful application for full planning permission that includes consultation with your neighbours.
Though be warned that budgeted costs can easily mushroom and in many cases for really extensive multi-sided works on existing properties can end up costing more than to demolish and rebuild from scratch.
Basically anything considered as being outside the scope of permitted developments will require planning permission.
Unless intended works are straight forward i.e. relatively minor adjustments to your property then my best advice for most without experience in making planning applications is to contract the process out to an all in one firm to design, prepare the architectural plans, survey, seek building regulations approval plans, and make and manage the actual planning application for you. At a minimum the whole package will cost at least £1000 and could easily rise towards £5,000 for extensive works.
Even if you intend on making the planning application yourself it can still be useful to consult with architects on what you can and cannot do.
The next stage will be to contract a builder to undertake the works for you, in which respect you really will get what you pay for so do not fall for cold callers who will have seen your planning application on the local council's website and may start bombarding you for business by making too good to be true promises. The best place to start is the Federation of Master Builders (FMB).
The key to successful homes extensions is for the new addition to blend in as seamlessly as possible with the existing structure, where the more obvious the new works are then the less value they are likely to add to your home.
Which means careful attention to detail needs to be made at the planning stage on for instance whether to go with the extra cost of replacing the entire roof rather attempt to save money by just adding a new roof over the extended area, the result of which can stick out like a sore thumb.
The bottom line is that when contemplating extending ones home is to fully appreciate the ceiling price for similar properties in the area, so not to price your property out of the area by incurring costs beyond what prospective home buyers would be willing to pay.
Planning Permission Adds Value
You don't need to go ahead and commence building works to benefit from an increase in your homes value for the fact that you have planning permission granted will make it easier to sell your home as prospective buyers will have a better idea of the extending possibilities.
For 14 more value increasing home improvements see the New UK Housing Market Ebook available for FREE DOWNLOAD (Only requirement is a valid email address).
| Top 15 Value Increasing Home Improvements | Page |
| 1. Home Extensions | 191 |
| Permitted Developments | 191 |
| Planning Applications | 193 |
| 2. Kitchens Sell Houses | 196 |
| 3. Renovate Bathrooms, Add En suites and Toilets | 197 |
| 4. Loft Conversions | 198 |
| 5. Convert Front Lawns into Driveways | 200 |
| 6. Extend Leases and / or Buy Freeholds | 202 |
| 7. Conservatories | 203 |
| Who should avoid Conservatories? | 204 |
| Cooling Conservatories in Summer | 204 |
| Warming Conservatories in Winter | 205 |
| 8. Front and Back Garden Landscaping | 205 |
| Front Landscaping, Cladding or Render | 205 |
| Front Dwarf Walls and Metal Railings | 209 |
| Back Gardens | 213 |
| 9. Replace Tired Old Garden Fences | 214 |
| 10. Tree's Danger, Inspection, Pruning and Removal | 216 |
| Are Your Trees Too Close to Property? | 217 |
| Solar Panels | 217 |
| Tree Dangers | 218 |
| Tree Preservation Orders | 218 |
| Tree Inspection | 218 |
| Hedges, Trees and Neighbours | 220 |
| Cutting Your Neighbours Overhanging Branches | 221 |
| Trees to Avoid Planting | 222 |
| Dealing with Medium Height Trees (Under 10 metres) | 222 |
| Dealing with Tall Trees (Over 10 Metres) | 224 |
| Container Trees | 226 |
| 11. Going Green - Insulation, Green houses and Water Butts | 228 |
| INSULATION | 228 |
| WATER BUTTS | 229 |
| GREEN HOUSE | 229 |
| 12. Storage Space Ideas | 232 |
| Staircase | 232 |
| Converted Lofts | 232 |
| Garages | 234 |
| Sheds | 234 |
| Under House Storage | 234 |
| 13. Replace Flat Roofs with Pitched Roofs | 235 |
| 14. Quick Cheap DIY Ideas to Help Sell Your Home | 237 |
| Replace Bland Old White Switches and Sockets | 237 |
| Light Fittings | 238 |
| Add or Renovate Neglected Flower Baskets | 239 |
| Solar Lights | 240 |
| House Signs and Numbers | 242 |
| Air Fresheners | 243 |
| 15. Painting, Decorating, Cleaning and Maintenance | 244 |
| Ceiling and Wall Plaster Cracks | 244 |
| Painting & Decorating | 244 |
| Carpet Stains | 246 |
| Water Leaks and Maintenance | 247 |
| Exterior Brick Walls Holes and Mortar Repair | 248 |
| Exterior Painting | 250 |
| Decking, Fencing, Garden Furniture and Railings | 251 |
| Lawns | 254 |
| Driveway Pressure Washing and Sharp Sanding | 255 |
| Roofs | 256 |
| Home Improvements to Avoid | 258 |
| 1. Swimming Pools & Garden Ponds | 258 |
| 2. Solar Panel Installations | 260 |
| 3. Garage Conversions | 262 |
| 4. Children's Play Equipment and Areas | 264 |
| 5. Basement Conversions | 267 |
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2. U.K. Housing Market Analysis and House Prices Forecast 2014-2018 - 107 pages
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Over 1/3rd of the ebook comprises of extensive guides that cover virtually every aspect of the process of buying, selling and owning properties, including many value increasing home improvements continuing on in how to save on running and repair costs with timely maintenance tasks and even guides on which value losing home improvements should be avoided.
- What Can You Afford to Buy?
- Home Buyers Guide
- Home Sellers Guide
- Top 15 Value Increasing Home Improvements
- Home Improvements to Avoid
- Home Winter Weather Proofing 22 Point Survey
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By Nadeem Walayat
Copyright © 2005-2014 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.
Nadeem Walayat has over 25 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.
Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk
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