With the housing market continuing to stagnate, many people are turning to home improvement as a way to get the space they need.
Figures from Nationwide last week showed that a record 20 per cent of all further advances given to its existing mortgage customers this July were used to pay for structural work, including loft conversions.
What’s more, 10per cent of all remortgages that the company agreed were also for extensions of one kind or another.
“In uncertain economic times, home owners are attracted to the idea of improving their property by adding space and value rather than face the extra costs and expense of moving to somewhere bigger,” says Nationwide’s head of mortgages, Martin Dyson.
Getting extra funds for home improvement projects used to be simple. However, with lenders now being stricter about loan-to-value ratios and who they will lend to, how do you go about getting the money to make home improvements?
Loft conversions and extensions aren’t cheap, but are likely to add value to your home. According to the Nationwide index, another double bedroom will push up the value of your house by 12 per cent, while a double bedroom and en suite bathroom adds 23 per cent. However, this would cost you around £35,000.
Start by looking at how much your loan-to-value is likely to be, as well as calling some builders for a general estimate of what the work will cost. You can usually call your mortgage company to get the figure for the balance remaining on your mortgage, in order to work out what your current loan-to-value is.
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Adding A Room Adds Value is a post from: TheAdvisory.co.uk