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The MRI 3D Report

Top 15 Home Value Increasing Improvements - Extensions

Housing-Market / UK Housing May 26, 2014 - 06:51 AM GMT

By: Nadeem_Walayat

Housing-Market

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 -

  1. Taking the impact on your neighbours into account.
  2. Use of professional services such as an architect to get it right first time.
  3. Has your home already been extended? Possibly by the previous owners.
  4. Discuss your plans with your local council to ensure that you would not fall fowl of planning rules.
  5. 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
 

New Housing Market Ebook - FREE DOWNLOAD

The housing market ebook of over 300 pages comprises four main parts :

1. U.S. Housing Market Analysis and Trend Forecast 2013-2016 - 27 pages

The US housing market analysis and concluding trend forecast at the start of 2013 acted as a good lead exercise for the subsequent more in-depth analysis of the UK housing market.

2. U.K. Housing Market Analysis and House Prices Forecast 2014-2018 - 107 pages

The second part comprises the bulk of analysis that concludes in several detailed trend forecasts including that for UK house prices from 2014 to 2018 and their implications for the outcome of the next General Election (May 2015) as well as the Scottish Referendum.

3. Housing Market Guides - 138 Pages

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

These guides will further be supplemented from Mid 2014 onwards by a series of online videos and regularly updated calculators such as the Home Buying Profit and Loss Calculator, which will seek to give calculations on whether to buy or rent based on personal individual circumstances, that will be updated to include the latest expected trend trajectories for future house price inflation i.e. you will have your own personal house price forecast.

4. Historic Analysis 2007 to 2012 - 40 pages

A selection of 10 historic articles of analysis to illustrate the process of analysis during key stages of the housing markets trend from the euphoric bubble high, to a state of denial as house prices entered a literal free fall, to the depths of depression and then emergence of the embryonic bull market during 2012 that gave birth to the bull market proper of 2013.

FREE DOWNLOAD (Only requirement is a valid email address)

Source and comments: http://www.marketoracle.co.uk/Article45761.html

By Nadeem Walayat

http://www.marketoracle.co.uk

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.

Housing Markets Forecast 2014-2018The Stocks Stealth Bull Market 2013 and Beyond EbookThe Stocks Stealth Bull Market Update 2011 EbookThe Interest Rate Mega-Trend EbookThe Inflation Mega-trend Ebook

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

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Nadeem Walayat Archive

© 2005-2017 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


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