Loft Conversions - do they add value?

Bluefusion

We had our 2 bedroom cottage valued by several estate agents and all came in at around 265k - so we put it on the market for that. But due to the stamp duty issue all offers have been 250k or 250+ 5k fixtures and fittings.

We have looked at other houses up for sale in our area to see what you can get for 250k, not to brag but ours is well worth the 265k asking price.

We have to-date had 7 viewings and all have come back for a a second time and 5 have put in offers up to the 255k mark, but will not go any higher.

We are in a situation that we cannot afford to let our house go for the 255k so we are now looking at a loft conversion to add an extra bedroom with on-suite. All the quotes seem to be in the 20-25k region. So is this money well spent? Will it add value to the house if we come to sell it in a year or two?

nearlyrich

It all depends what 3 bedroom properties bring in your area, don't make the mistake of thinking it will automatically add the £20 to £25k onto your value. Another thing to be aware of is that bigger houses often have more downstairs living space not just extra bedrooms. I would go and view some of the houses on the market in your area and see what the competition is like before spending £25k.

clutton_2

it is very easy to "over-develope" a property and not get ANy return on your investment -

nearly rich is absolutely right - go round a dozen or so houses which are on the market at present in your area, and see what you actually get for the money - only then decide if you should spend all this money.

is it worth it to spend £20k to get £20k ? Do your sums well first - good luck

UK007BullDog

Can only ditto what the others have said so far.

Also is your loft spacious or has it steep sloping roof to make it difficult for a tall person? Will it be easy to get to the loft without taking too much space away below to add a stairwell?

MissMotivation

This is a really really difficult position to be in and one that many sellers in the £250,000 to £275,000 price range find themselves in as buyers are really reluctant to lay out 3% stamp duty if there is any way they can avoid it.

To answer your question about loft conversions I will give you a fairly ambiguous answer I'm afraid. In some circumstances they can add value to a property, it really depends on the layout, for example, if your property is currently a 2 bed 1 bathroom property and you convert the loft but take space from one of the bedrooms for the staircase, therefore making 1 bedoom on first floor small or in some circumstances too small to be classed as a bedroom then no IMO it wouldn't add the same value to the property as the amount of money it cost you to do. This is because all you would really be adding to the property is an en-suite therefore making it a 2 bed, 2 bath property.

If the layout of your property is sufficient enough to enable you to make a staircase from the landing to the loft, therefore making it a 3 bed, 2 bath property then yes I beleive you would add value.

The only thing I can't advise on is how much value it would add because I would need to know more about the area the property is in, the types and sizes of surrounding properties and property prices in the vicinity, this is because in any area there will always be a ceiling price that houses will acheive.

I would speak to your EA and ask their opinion, if they are not helpful then I would maybe get another couple of opinions. I often get called out to properties where people are thinking of doing loft conversions and need some advice.

With regards to the stamp duty aspect, there is not really any way around it, unless someone falls in love with the property and is prepared to pay for it>

HTH

clutton_2

if you choose to add a decent third bedroom/ensuite in the roof space, you will almost certainly not get your money back if you are in the sort of area, where there are no other houses which have a third bedroom/ensuite - as prospective buyers will be looking for an area which has its indigenous property already containing 3beds/ensuite - if you see what i mean !

Squidgy

Hubby is an estate agent and he says NO!!!

Squidgy

PS

So are you willing to spend 20 - 25K having a conversion on your house that probably won't add anything to the value rather than lose 15K ???

alanobrien

If its done well then the answer is yes.

Ours cost around 17k and returned a lot more than that when we sold 18 months later.

Andy_L

alanobrien wrote:

Ours cost around 17k and returned a lot more than that when we sold 18 months later.

But how much would your house sold for without it after 18 months of crazy house price inflation?

Robert_Sterling

Stamp Duty up to £250,000 is 1% therefore up to £2,500
At £250,001 it is over £7500.
Little wonder that few people will consider a price in the range
£250,001 to £275,000.
The stamp duty should not go up so abruptly at £250000 and at £500,000.