An extension will add value to your house by creating extra space, which is always desirable. House extensions that add living space and boost the beauty of your home will attract buyers when you put them on the market.
However, this statement comes with a caveat, as potential pitfalls could affect the profit you make from your property after building your new extension.
In addition, some home extensions will add more value than others.
Read on for tips on planning your extension project to ensure that your investment maximises the value of your home and earns you a healthy profit when you sell it.
All extensions are not created equal, and the amount of money different extensions will add to the potential value of your home may vary considerably.
Bigger is often better, and figures from Rightmove suggest that the average asking price per square metre in England and Wales is a whopping £2954.
However, the location and type of home extension are also important. You may love the idea of creating a dog room next to the kitchen, but the average buyer may not be interested in a pooch palace.
Industry research suggests that the following extensions add the most value to your home.
A loft extension creating an extra bedroom in an average three-bedroom house could add up to 20% to the value of your home.
Buyers love an additional bedroom, and adding a double bedroom plus a small bathroom or ensuite will increase the market value significantly.
Expanding your property upwards doesn’t require groundwork, so a loft conversion is often more affordable than other extensions. A bonus is that most loft conversions do not require planning permission.
A single-storey extension that creates a new kitchen or living space could increase your home’s market value by 5% to 8%.
Most homeowners prefer open-plan living spaces with plenty of natural light. A spacious kitchen/family room extension will make your house attractive to a wide range of buyers who will need to make competitive offers to secure your beautiful home.
Many modern homes have garages, but they rarely contain a car.
If you can find another home for all your junk, you could add tens of thousands to the value of your house by converting your garage into a useful downstairs double bedroom and ensuite, a gym, or a playroom.
The cost of your extension will depend on its size and all the variables above. The finish and quality of the fittings will also add to the cost.
The following figures indicate the average costs for an extension built with traditional construction methods.
Small extension (20m2) – £25,000 – £50,000
Medium extension (30m2) – £37,500 – £67,500
Large extension (50m2) – £62,500 – £112,500
Premium extension (30m2) – £52,500 – £100,000
You can use our Quick Quote here to find an indicative price for a SIP extension.
It is surprisingly easy to undertake extensive building work and then discover that your new extension will not realise the profit you were hoping for.
It is essential to consider the following when planning your extension.
It is all about location. Most neighbourhoods have a ceiling price that property buyers won’t pay above. It would be a mistake to invest so much money into your house that you need to sell it at a price far above the local market rate. You risk lowering your asking price and selling your dream home at a loss.
We have all seen TV home improvement shows like Grand Designs and watched as unforeseen problems cause budgets to spiral out of control. To achieve maximum value from your extension, it is essential to research, identify any issues, and keep an iron grip on the budget.
Don’t overlook other ways to boost property value and maximise the profit generated when you sell.
Creating off-street parking in urban and suburban areas can add value to your house. Much of the housing stock in our cities is Victorian terraces, predating the need for a parking space by up to a century.
Lowering the kerb and making space for your car at the front of your house could add a significant sum to the value of your home at the cost of a few thousand pounds.
Installing double glazing, a new roof or central heating will also add value to your property.
Please find out more about building an extension with SIPS here.