Improving Property Value
If you are in a position where you are you looking to sell an existing property, or perhaps if you are considering buying a property to then take a second charge mortgage on to then renovate in order to sell at a higher price or utilise as a buy-to-let investment, there are a number of ways in which you can increase the value of the property in question. Furthermore, it may even be the case that a property owner has updated an aspect of their property and unbeknownst to them, they have if fact improved its value.
Although market values and trends will play a big part in influencing a property’s valuation, a number of practices can be adopted in order to really maximise the sell-on value of a property. Although some of these practices may involve an initial outlay; to invest in the property, there are others which only cost minimal amounts if anything at all. Hence, there is something for all budgets and tastes when it comes to improving a property and its subsequent value.
Moreover, by increasing the value of a property, should you require a second charge mortgage in the future, you will have access to larger amounts of funds as the property will be worth more, making equity more valuable. It is also important to consider whether you should remortgage your property rather than take out a second mortgage.
‘Kerb Appeal’ refers to updates and improvements to properties which literally give them ‘appeal from the kerb,’ making them look more attractive from the outside and from the street to potential buyers and parties of interest. There are a number of ways in which you can give a property kerb appeal to improve the property’s overall value.
Maintaining Property Exteriors
The outside of a property is just as important as the inside and is the very first thing that any prospective buyers see upon arriving to view the property. Additionally, first impressions count with properties as with other large investments and purchases. This means you should make it a priority to make sure that the lawn has been mowed, flower beds have been neatly kept, there is no clutter in the drive and everything looks clean and fresh.
You could also look at paving over the driveway if you have one. Whilst it could cost up to around £10,000 to pave over, it can dramatically increase the value of your property, particularly in urban, densely populated areas like London. You could expect to add as much as £50,000 to the value of your property.
Creating off-street parking is another fantastic way to improve the value of the property which you are looking to sell. Creating at least one parking space alongside a property is so worth the investment that experts recommend even getting rid of a front garden to have one.
Remove the Garage
Removing the garage of a property can help to increase its value. Therefore, it is worth considering whether the garage you have is in fact of any use to you. Don’t be fooled into thinking that it will be a selling point, as according to statistics, a staggering 90% of garages are used as little more than storage spaces. You would be much better off turning the garage into a living area, especially if value per square foot is of particularly high value in the area in which the property is situated.
When it comes to renovations costs, removing a garage is likely to cost around £10,000. Costs will therefore need to be taken into account when deciding whether to invest in this way. However, an advantage of getting rid of the garage and turning it into a living space is that you may not necessarily need planning permission, unlike with other renovation projects, as you are not actually extending or building on top of the property.
Nevertheless, you should always check with your local planning authority to avoid any potential fines or penalties, as this could end up actually reducing the value of your home in the long run. To check whether or not you are compliant, you can visit the local council's building control service who can help you.
Having a conservatory could add an extra 10% to your property’s value, with most conservatories considered as permitted developments. Therefore, this means that building one tends to be cost-effective. Despite this though, you should always take into consideration the design and layout of your house beforehand when planning to build a conservatory as it is not always the case that it will increase the property’s value if it is poorly planned and installed.
Most properties that come to market already possess properly installed and functioning central heating. Thus, not having an adequate central heating system if one at all, could in fact end up decreasing the value of the property in question, so you should make sure that you have it installed. This is likely to cost you around £1,000 to £3,000. However, having it installed is very much worth it, as it can increase the property’s value overall by as much as £5,000 or even more if the property possesses a brand-new system.
Prospective buyers can often put off a property because it seems too small and cramped, with insufficient space for storage. With this in mind, if you are keen to find ways to help increase the value of your property, you should make it as spacious as possible, making it more appealing to prospective buyers. Make the most of any space that you have and turn it into storage space.
Think about space for shelves and cupboards in some of the following areas in the building:
● Spaces above sinks
● Dead spaces on either side of chimney breasts
● Spaces in the attic or cellar
● Spaces under the stairs
● Unused wall spaces
Adding a loft conversion
A loft conversion could see as much as 15% added to the value of your building, and even more if you then decide to build an en-suite bathroom too. On average, adding a loft conversion to your property will cost upward of around £25,000, but you will need to make sure that you get guidance from an architect or builder to ensure that it is possible to convert your loft, as well as ensuring that you get planning permission from your local council before starting any such building work.
When it comes to how long it takes to complete a loft conversion, the process takes around a year to complete (this includes the time it takes to sort out planning permission.) However, unlike other ways of increasing the value of your home, there is fairly little inconvenience caused, this is because the work can be done without inhabitants having to leave the property