Home Improvements On The Increase June 30th, 2008
With the housing market looking fairly flat at the moment and continuing fears over the future of the UK economy, many individuals who would probably be considering moving house this year are, quite understandably, putting off any decisions for such a large commitment until the markets settle down once more.
As the number of people looking to move decreases, there has been a significant increase in the number of homeowners making improvements on their property. For some, this is an alternative to moving altogether, why go to the expense of moving to a larger house when you can build an extension on your existing home for less. For others, home improvements are a way of increasing the value of the house to make it more attractive to potential buyers and increase saleability once the market recovers.
There are many ways of improving a property, but according to new research, the best way to add value to a property is to increase the amount of living space it offers, either in the form of a loft conversion, extension or adding a conservatory. The most popular of these is the loft conversion, which on average could add almost £23,000 to the value of the house, followed by an extension, which could add on average almost £20,000. The addition of a conservatory typically adds just over £12,000 to a property value.
For home owners who don’t have spare cash lying around to fund this type of project, there is a wide range of lenders who are able to offer home improvement loans. These are relatively easy to obtain as they are secured loans on the property in question and the money from the loan will be spent on developing the property, thereby increasing the value and adding additional security for the lender. Another method is to re-mortgage the property, if there are no redemption penalties on the existing home loan and once again lenders are happy to grant home improvement loans by way of re-mortgage. Finally the existing lender may be prepared to offer a further advance on the existing home loan and it is worth investigating the various options thoroughly before committing to one route.