How much value does a loft conversion add?
For most people, your home is your biggest investment and protecting it is crucial to your financial future. Whilst maintaining the value of your property can be a good way to ensure your investment is safe, adding value to it can be even better.
Although property prices can fluctuate over time, extending or modernising your home is a sure-fire way to increase its value. Regardless of how you plan to use your new loft conversion, if the space can be used an extra bedroom, you’re already well on the way to adding significant value to your property.
Of course, the type of loft conversion you choose will have an impact on how much value you add to your home, as will the build quality and design. With a variety of options to choose from, you’ll need to keep the value enhancing aspect of your loft conversion in mind when you’re designing your upward extension.
Increasing property values with loft conversions
Whilst any loft conversion should add value to your home, the extra space you create will determine just how much the value of your property increases. Depending on the existing size of your loft space, even a straightforward Velux loft conversion could add a considerable amount to the value of your home.
However, loft conversions which create space, as opposed to solely enhancing functionality, could boost its value even more. Dormer, hip to gable and Mansard conversions are designed to offer additional floor space and height. With most attic spaces featuring heavily sloping walls, adding height can transform your loft and turn it into a versatile and functioning room.
Providing your loft conversion can be classified as an extra bedroom, you can expect to add around 10% to the value of your home. In many cases, however, you can add even more value to a property by modifying the design of your loft conversion.
Studies carried out by Nationwide Building Society suggest that a loft conversion featuring a double bedroom and bathroom raise a property’s value by 20% on average. Sending the value of a £350,000 home to £420,000 or a £600,000 to £720,000 is a staggering increase, particularly when your loft conversion can be completed at far lower costs.
With the potential to add so much value to your home, adding a loft conversion is an investment which is almost guaranteed to bring you a big return. If you plan to sell your home or use it as leverage for future financing, increasing its value via a loft conversion will ensure you have a more valuable asset to rely on.
Furthermore, the money you invest in an upward extension will be recouped when you sell the property in the future. Giving you extra living space whilst you’re in the property and adding to its sale value, a loft conversion can be the ultimate way to invest in your home.
Adding rental value with a loft conversion
As well as increasing the overall value of your property, an upward extension could deliver short to mid-term gain too. By adding extra space to your home, you increase its rental value, as well as its market price. This gives you the option to supplement your income by renting your property out to tenants.
If you may choose to remain in the property and rent the loft suite out to a lodger, for example. This creates a whole new source of revenue and gives you a monthly income or supplements your existing salary. Furthermore, renting out your loft space to a lodger requires minimal disruption. You’ll be able to continue living in your home and simply benefit from a considerable monthly influx of cash by keeping your loft conversion occupied.
Alternatively, you may prefer to rent your entire property out to tenants. If you’re going to be away for a long period of time, have a second property or plan on moving to a new location, renting your home out can be a wise financial decision. As well as retaining ownership of the property, renting your home out ensures you get a monthly income from it and allows you to benefit from any increase in the property’s value over time.
When you rent any property, the number of bedrooms it features is a deciding factor in its rental value. By having a professional loft conversion carried out, you can add a single or double bedroom, as well as a bathroom, and boost the rental value of your home straightaway. Catering for larger families and additional single tenants, increasing the size of your property is sure to enhance its rental value.
Retaining flexibility and value
If you’re unsure about renting your home out on a long-term basis but you want to get an immediate return from your loft conversion, you may want to consider short-term lets. Websites, such as AirBnB, have become increasingly popular in recent years, and thousands of people regularly find rooms, suites and properties to rent for a night. Having extra space in your home may give you the option of renting out a room on an ad-hoc basis and you’d be surprised at how profitable this can be.
Depending on the area in which you’re situated, as well as the facilities you can offer, you could secure a nightly rental income of £60 upwards. With luxury properties in high value areas regularly commanding £200 per night plus, a <a href=” https://www.constructionhq.co.uk/about/”>high-quality loft conversion</a> can be a fantastic way to add short-term value to your property, as well as increasing its sale price.
It’s important to remember that a loft conversion will add value to your home, however you decide to use it. Whether you’re eager for extra space and plan on using it as a full-time bedroom for family members or you want to increase the rental space in your property, a loft conversion will give you the flexibility and versatility you’re after.
To find out more about increasing the value of your property with a loft conversion contact us now!