With interest rates at rock bottom and a stock market that people are understandably wary of and inflation heading to five per cent, the only way to protect your wealth is to invest in your own home. Remortgaging to finance value-adding work to bathrooms, kitchens and lofts is the easiest means of financing renovation or extension projects.
A remortgage is switching your mortgage from one deal to another, even sometimes with the same lender, and if you want to carry out improvements on your property, you can take a further advance, which means borrowing more money. Not only will you then have the funding for your venture, you will also more than likely be able to get a better interest rate on your mortgage. Now we will explore some idea on how you can use your funds to improve your home.
New bathroom: With, the average cost of a new bathroom at just 1,300 if you undertake the refit yourself or 3,250 if you employ a professional, an overhaul of your bathroom costs about two per cent of an average home loan. Of course it all depends on the scope of your ambitions. If you are looking to simply add a new suite and are on a fixed budget, you can spend a few hundred pounds, but it is also possible to spend thousands on a very high end finish. Try to get a feel for what the housing market in your area is like, spending thousands on an ultra chic bathroom won't necessarily add massive value to your property if you're in a relatively modestly priced area.
Redecoration: Research from the mortgage lender Abbey in 2009 found that cosmetic improvements such as repainting or general redecoration can add instant value to your property. Abbey found you can add 3,557 to your property's value simply by spending an average of 1,330.
New Conservatory: A conservatory is a lovely room to add to the property and a great place for sitting in the summer with a glass of wine - add heating and you can use it in the winter too! A conservatory could add 10-15% onto the value of your home.
Conservatories typically cost between 500 and 1,000 per square metre although this will depend on the size and the quality of materials used (whether your conservatory is built from PVC or wood). Remember also that you may need planning permission for larger conservatories.
Swimming Pool: OK so this one isn't for everyone, but adding a pool (which can be inside a conservatory area) if your home is large enough can really add a lot of value. You can expect an increase of around 15% to the value of your home - but only if you have the space. If you end up taking up most of the garden to put one it that is more likely to decrease the value.
New kitchen: A new kitchen is one of the most popular types of home improvement. Whilst it makes a home more attractive to buyers and increases its value, it is vital that you don't exceed a careful budget when installing a new kitchen. The website whatprice.co.uk has found that a kitchen renovation only adds around 8 per cent to the market value of your home and so you should ensure your budget for improvements is less than this amount.
Replacement windows/doors: An insecure property is unlikely to attract buyers, so spending between 500-1,000 on new windows and 350 on new doors is likely to be a sound investment, particularly if your existing ones are looking tired or don't keep up with the overall aesthetic of the house.
Loft conversion: Adding an additional floor to your home is a great way of adding space and value. A remortgage can help you convert your loft as a lender will often advance the loan based on the 'when finished' value of your property.
Look at the area you live in and try to gauge the ceiling price for homes before you add something large like a loft conversion. It might be a good idea to contact a surveyor first or a builder to price the job before you get started. Only then can you be sure that you're likely to make a profit.
A remortgage is switching your mortgage from one deal to another, even sometimes with the same lender, and if you want to carry out improvements on your property, you can take a further advance, which means borrowing more money. Not only will you then have the funding for your venture, you will also more than likely be able to get a better interest rate on your mortgage. Now we will explore some idea on how you can use your funds to improve your home.
New bathroom: With, the average cost of a new bathroom at just 1,300 if you undertake the refit yourself or 3,250 if you employ a professional, an overhaul of your bathroom costs about two per cent of an average home loan. Of course it all depends on the scope of your ambitions. If you are looking to simply add a new suite and are on a fixed budget, you can spend a few hundred pounds, but it is also possible to spend thousands on a very high end finish. Try to get a feel for what the housing market in your area is like, spending thousands on an ultra chic bathroom won't necessarily add massive value to your property if you're in a relatively modestly priced area.
Redecoration: Research from the mortgage lender Abbey in 2009 found that cosmetic improvements such as repainting or general redecoration can add instant value to your property. Abbey found you can add 3,557 to your property's value simply by spending an average of 1,330.
New Conservatory: A conservatory is a lovely room to add to the property and a great place for sitting in the summer with a glass of wine - add heating and you can use it in the winter too! A conservatory could add 10-15% onto the value of your home.
Conservatories typically cost between 500 and 1,000 per square metre although this will depend on the size and the quality of materials used (whether your conservatory is built from PVC or wood). Remember also that you may need planning permission for larger conservatories.
Swimming Pool: OK so this one isn't for everyone, but adding a pool (which can be inside a conservatory area) if your home is large enough can really add a lot of value. You can expect an increase of around 15% to the value of your home - but only if you have the space. If you end up taking up most of the garden to put one it that is more likely to decrease the value.
New kitchen: A new kitchen is one of the most popular types of home improvement. Whilst it makes a home more attractive to buyers and increases its value, it is vital that you don't exceed a careful budget when installing a new kitchen. The website whatprice.co.uk has found that a kitchen renovation only adds around 8 per cent to the market value of your home and so you should ensure your budget for improvements is less than this amount.
Replacement windows/doors: An insecure property is unlikely to attract buyers, so spending between 500-1,000 on new windows and 350 on new doors is likely to be a sound investment, particularly if your existing ones are looking tired or don't keep up with the overall aesthetic of the house.
Loft conversion: Adding an additional floor to your home is a great way of adding space and value. A remortgage can help you convert your loft as a lender will often advance the loan based on the 'when finished' value of your property.
Look at the area you live in and try to gauge the ceiling price for homes before you add something large like a loft conversion. It might be a good idea to contact a surveyor first or a builder to price the job before you get started. Only then can you be sure that you're likely to make a profit.
About the Author:
Howard writes for Just Commercial Mortgages the UK's No1 site for the latest commercial mortgage rates and commercial property finance news.
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