Does A Loft Conversion Add Value To Your Home?
Three Big Question When Considering A Loft Conversion
1) Does A Loft Conversion Add Value To Your Home?
2) Should I have a loft conversion or an extension?
3) Should I convert my loft or move home instead?
Independent analysis has shown that on average, a loft conversion adds more cost value than any other home renovation project.
Why is this? Here are three primary reasons why a loft conversion makes sense:
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You create more living space/rooms within your existing home.
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According to independent surveys completed, a loft conversion costs less per square metre gained than that of a house extension.
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Unless you have a very large garden, then a loft conversion also means you don't eat into your valuable and very desirable outdoor space.
You can read any of the millions of news articles, blogs, websites, and YouTube videos; they all tell you the same thing. More importantly, any reputable estate agent will tell you that if you want to improve the value of your home in real terms, you need to consider a combination of the following:
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Modernise your home, as any outdated styles will devalue your home.
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Increase the number of bedrooms or habitable rooms. The new working from home norm means people need more rooms to work and live.
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For most homes, an additional bathroom or en-suite adds significant value, especially if this adds an ensuite to the master bedroom.
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Adding overall floor space to your home always adds value. However, if you do this by having an extension, you need to be careful, as by reducing your precious outdoor space, this could also have a negative impact on the value.
Convert or Move?
Is it cheaper to move or convert your existing property?
For the vast majority, the answer is yes. Moving home in the current market is a huge financial decision, not to mention a very stressful process, especially for families with children. With global instability, cost of living increases, and rising interest rates, couples are telling us the cost of moving is becoming very costly. When taking these costs into consideration, it makes a home renovation project significantly more cost-effective in the short and long-term.
Case Study
Everyone's circumstances are different, but to give you a feel of the cost benefits of getting a roof lift or loft conversion versus moving to a new home, here are real numbers.
Based on a recent loft conversion project in Sheffield, for a lovely couple with two young children living. They own a typical three-bedroom home in an average area. The couple desperately needed more space, as both of them now regularly work from home, and they never have family or friends over to stay as they have nowhere to let them sleep.
To buy a similar 4 or 5 bedroom house, with ensuite to master bedroom in equal or better area of Sheffield, would cost them between an extra £80,000 to £145,000. In addition to this is the cost of moving home would be almost £13,000.00 when all is taken into consideration:
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Removal Company – £1150.00
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Estate Agents Fee 1% + VAT – £4,300.00
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Stamp Duty – £2,250.00
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Solicitors Base Fee inc. various fees – £2,550.00
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Cost Of Switching Mortgage, inc all fee’s – £2,650.00
There were also other tangible and intangible costs to consider such as:
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Increase In Council Tax as the house is more likely to be in a higher banding.
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Higher interest rates on the mortgage/borrowing.
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Disruption and upset of moving the children between school and friendship groups.
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Childcare costs and location.
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Your local friends and contacts if moving away from the area.
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Perhaps how close you are to family who help you out with babysitting and much more.
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The list is endless...
Working with Milestone Homes & Lofts, they looked at options to renovate their home, and we did some cost analysis. They concluded to have a loft conversion to add a master bedroom with ensuite and a further small room. This extra small bedroom could be used as a spare room, a home office, or it could easily be converted into a walk-in wardrobe at a later date if wanted.
After the renovations were complete, they requested a home valuation. This update saw the home being revalued a fantastic 24.3% increase on the original evaluation some 6 months earlier. The couple estimates they had saved in excess of £57,000.00 over moving home. Plus all the time and money invested in their current home was not lost.
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