Renovate or Move? 

Not all renovations add value to your property, so how much should you spend and on what?

Moving house is a costly business, and especially in times of uncertainty, improving your current home may can make more financial sense. There is however a fine line between what you spend and what you may hope to recoup when selling later down the line. So which projects are worth investing in, how much should you spend and on what?

Many factors will also come into play as you may benefit from lifestyle gains and more space even if you don’t recover your investment costs at a later sale. It also depends on the area in which your property is situated, be it London or Norwich, and what the local market is willing to pay. There is often a maximum ceiling price in a road and no matter what improvements and additions you make it is nearly impossible to break through that price. Note that most major structural renovation work and extensions are not financially viable on properties below £500,000, as the cost would never be fully recouped.

Having said all that, the most popular improvement is a loft extension followed by a side return or single storey rear extension using permitted development. To retain and recoup your spend when selling, the maximum suggested spend on a loft extension should be no more than 5% of the value of your property, so on a home valued at £500,000, that maximum spend would be £25,000. On a side return, the rule of thumb is 9%, so again on a property of £500,000 that is £45,000, and a single storey extension should be no more than 5% of the property. A basement excavation is not viable on a house valued at below a million pounds. The project, which potentially adds the most value, is creating an open-plan kitchen/living area followed by a high quality kitchen renovation and bathroom renovations.

If you are spending more than 5% of the value of your house, it is also worth considering hiring a project manager. They are likely to be worth more than their fee in time savings which can add up to a lot if you are renting whilst the work is being carried out. Also having spent money on the project it is worth hiring an interior designer to check it will fit your lifestyle and needs and also the flow of the finished project. They will also sort out the lighting and overall look and finish to keep the maximum value of the renovation work and increase your enjoyment of your new home. Call Emile or Simon of Chameleon Designs Interiors on 020 8473 1363 or 01603 702295