Whether you are actively looking to sell your home or just improve your lifestyle, building an extension or undertaking a conversion project is a great way to make your home more attractive as well as to add value.
How much can these projects actually increase the value of your home?
Studies Show Clear Increases to Home Value
While it’s not possible to put an exact figure on how much value an extension would add to your home, it is clear that building an extension will add to the value. There have been several studies examining house prices and they conclusively show an increase in value.
Nationwide research found:
• Extensions creating another double bedroom and en-suite bathroom could add up to 23% to the existing value of a property.
• Extensions creating an extra bathroom could add up to 6% to the existing value of a property.
• Extensions creating an extra double bedroom could add up to 12% to the existing value of a property.
Other surveys and research has made similar discoveries. Zopa research found the average home extension adds nearly £20,000 to the existing value of a property, with return on investment standing at 71%.
The statistics are very similar in these different studies, showing extensions to add value of up to 10%-20% and increase profits by over £10,000.
What You Need to Understand about Extensions and Conversions
Remember that while an extension or conversion can increase the value of your home, each project is different. Increases in the value of your property cannot be guaranteed and you have to carefully consider the cost and possible value increase (especially if that’s the main reason you’re doing it!) before you venture into a building project.
It’s important to approach the project by getting an expert to evaluate your property as it is now. They should then give you an evaluation of the value of the property with the extension in mind. These are estimates but they will provide you with an idea of the possible value increase.
You then need to consider the cost of your extension. Even if your home value goes up, you might not end up profiting if you have to spend a lot of money building the extension or conversion in the first place.
Before you start your building project, calculate the cost of your extension or conversion. This will help you to see how much financial value you could add to your property and the profit you might make.
Adding the Most Value with Your Extension or Conversion
When it comes to adding value to your property with an extension or conversion, the key is to plan your project well, and if you’re extending or renovating to sell, to make sure it appeals to the average buyer.
This means knowing the ideal buyer for your property and understanding what they will want from it. For example, is the average buyer in the area interested in an additional bedroom or more living space? For family homes, an extra bathroom or larger kitchen might be great additions, while busy urban areas could benefit more from garage extensions.
In addition, focus on ensuring your extension and conversion is planned and built well. This means using a professional architect to design your extension and then using professional builders to finish the project. This will help ensure the extension fits your existing property well, enhancing your property’s appearance and your lifestyle while living in it.
Conversions and Extensions Are a Great Way to Add Value to Your Home
The bottom line is that an extension or conversion can add value to your home but it’s important to plan the project well. You don’t want to just add an extension or convert part of the property for the sake of it. A great extension or conversion has to improve the practicality of your home for you and any possible future buyer and owner. It also has to work well in terms of your existing house appearance and layout. If you plan well and evaluate the potential value increase beforehand, you’ll end up making the most of your extension or conversion project.
Figuring out how much it costs to build a house is a big part of deciding whether self-building is going to be a better option than buying another property.
Without being fully aware of the costs, you could easily end up with a home you don’t want to live in as well as a myriad of problems.
Learning the Cost of Building Your Own Home
There are many things to consider when it comes to calculating the cost of building your home.
On top of the obvious things, such as the cost of the materials, there is a lot of detail that many people forget to include in cost calculations.
Here’s a breakdown of the different elements that will impact the cost of you building your own home.
The Cost Breakdown of Building Your Own House
Building a house includes many different elements that will add to the final cost.
We can divide these into the following categories:
- Foundation and superstructure, which include roofing and structural walling
- Fixtures and internal rooms
- Services and utilities
The Cost of the Foundation and Superstructure
The majority of your building costs will come from the foundation and superstructure of your house. These elements can account for almost half of the total cost of your home, with the biggest cost usually coming from the construction of the load-bearing walls and floors.
The total build cost of these elements for a typical house can be around £30,000 and around 13-15% of the total cost.
The cost of your foundation is tricky to estimate prior to building because a lot of depends on the kind of work you need done. You are not in full control of the specifications when it comes to the foundation, because the local authority Building Control surveyor will decide what is acceptable and what isn’t. The cost will go up if you need engineered foundations or if you’re building on a slope, for example.
In terms of the roof, your cost consists of:
- The structure itself
- Insulation, felt, battens and roof covering
- Flashing and other detailing
Basic rectangular shapes that use low-pitched roofing and manufactured trusses tend to be the cheapest. Quite simply, more complexity will add to the cost.
Similarly, the cost of external claddings, renders and exterior finishes is largely dependant on the materials you choose to use. The most common material of choice is brick, while stone is another popular material but it is more expensive than brick.
Fixtures and Internal Rooms
In terms of individual rooms, the costliest rooms will be the kitchen and the bathrooms. Kitchen costs are generally a little under £4,000 for a basic, standard kitchen, with top end kitchens filled with a range of features costing up to and above £12,000.
Bathroom costs will depend largely on the kind of room you want. A standard bathroom with a bath is around £3,500. Shower rooms can be about the same size, with wet rooms becoming an increasingly popular alternative. A simple cloakroom or washroom without a bath or shower can usually be built for around £2,000.
In terms of fixtures and fittings, heating solutions are one of the major costs. A standard heating solution tends to cost around £4,000-£5,000, while underfloor heating is a fantastic feature but is sure to add a few thousand pounds to your costs. For electrical work, a lot depends on the things you want, and a good electrical system can cost £45 – £50 per square metre.
Other indoor costs come from wall structures, flooring and decorative elements. You’ll also need to factor in windows and internal doors. Each element can be around 5% of the total cost and again in this case the cost is largely dependent on the materials you use. For example, you could reduce the cost of your build by hundreds or perhaps even thousands of pounds simply by being careful what type of paint you choose.
Services and Utilities
The biggest costs in terms of services and utilities are service connection costs. The cost is influenced by whether your plot is already connected to mains services or not. It’s a good idea to budget at least £10,000 for connection of water, sewers, electricity, telephone and gas.
Remember to Include Fees and Other Costs
Remember that the cost of building your house is not just exclusively related to construction. You’ll also need to include a number of fees in addition to your building costs.
- The cost of the plot you want to build on.
- Legal fees related to submission of planning applications and any other advice you need to seek.
- Stamp Duty and Land Tax.
- Topographical Site Surveys
- Structural Engineer’s fees, planning application fees and building regulations fees.
If you’re building it on your own, you’ll also need Self Build Insurance, and will have to factor in the cost of services you use for things you can’t do yourself, such as electricity fitting.
How to Influence and Control Your Building Cost
It’s always going to be difficult to give an exact figure of how much your house could cost as there are so many factors that could be an influence.
This is great news for you in the sense that it’s possible to build a house within a specific budget, if you have one.
You can control the cost of building your house by:
- Considering the size carefully – the bigger your house the more it will cost to build it.
- Opting for a simple shape and layout – a square floorplan is simple and cheaper than a house with lots of angles and corners.
- Thinking about the number of storeys – multi-storey houses can cost less to build than a single storey design.
- Comparing the different materials – you can also influence the cost by carefully comparing different building materials.
Finally, your building costs are dependent on your own involvement in the project. If you are in charge of project management, you can reduce the build costs by around 10%. As a lot of the cost comes from the labour, you can also reduce costs by doing things yourself – depending, of course, on your own level of building expertise and competence, not to mention how much time you have to spare.
Calculate Estimations Before You Start
As we’ve shown, there are plenty of factors that will influence the cost of building your own house. It’s important to start the project by carefully calculating estimations and asking for quotes from constructors and service providers. This will help you get an idea of how much you can expect to spend, and allow you to plan and execute your project accordingly.