Will extension add value?

htrj

I guess many people will say consult an Estate Estate agent on this one but I firmly believe you cant believe a word they say so im asking for the opinion of the experienced here.

I have a house in Warwickshire which is currently 4 bed 2 bath and approximately 200m2 in total. I also have planning permission to build a further 70m2 of living accomodation comprising of 1 further bedroom, 2 bathrooms, and utility room. I work in the building trade so I should be able to build that quite cheaply.

I might just be thinking too cautiously but the thing that bothers me is that as a 4 bed 2 bath house its not really lacking anything and a 5 bed 4 bath house would be nice but not necessary. I fear that I might not be adding much more value than it would cost to build. As I would only be building this extension to maximise profit what would your instinct be? To build or not to build?

SJshah

It also depends on the location of the property and the demand for houses in the area. If you're located anywhere in London (incl. Greater London) or the surrounding areas, an extension like this would definitely increase the value of the house, outweighing the cost of the build.

111KAB

Really got to compare with similar properties in the area. If you are ending up with 5 bedrooms but the property next door only has 2 then you may be 'over cooking' the location however if the next door property has 7 bedrooms people may expect yours to have 5. It really is a case of common sense. I also don't really understand your negative approach to estate agents - yes they may not be that truthfull when it comes to selling a property (in some cases!) however you are not, at this stage, looking to sell but merely looking for advise.

Hintza

Go on to nethouseprices or similar and see what houses are selling for in your area, it might give you a clue of the extra room adds enough value.

Remember though any gain on your residence is tax free so it might be a good way to boost your capital. But on the other side of the coin you might over capitalise the house for the area.

In this climate I would tread warily though.

sunshinetours

Certainly see how much demand there is for 5 bedroom houses in your area. An agent(s) surely is best source for this?

The fact that you can cut the cost of the extension by labouring yorself can only help any profit argument as its usually the labour costs that eat any profit element on expansion works.

You really need to know your lcoal market before you do anything though, noone here can give specific meaningful answers I wouldn't have thought

Leif

Agree with other comments. Also try https://www.RightMove.co.uk.

Also make sure the extension is 'sympathetic'. I'm sure it will be if you are in the trade, but some you see add no value as they are so daft or against regs.

iamcornholio

I don't know why planning permission was sought for an extension with 2 more bathrooms?

When extending, you only add any real value by increasing [existing] small areas, or adding additional living space - not extra bathrooms.

Unless of course there is a niche market for a certain property

htrj

I thought id replied to this earlier but my response hasnt come up.

Ill admit that its a vague question and difficult to give a specific answer to without knowing the locality. Although im sure you can all sympathise with me having not taken on a project like this before and talking about borrowing large amounts and taking on lots of work purely on the hope that someone will pay twice as much as I have just to make the job worthwhile is quite daunting.

Its a difficult market to guage as its a rural property. On one side of me I have a two bed cottage that hasnt changed hands for 100 years or more and on the other I have a mansion of a place that sold a few years ago for 6.5 million. The upside is that a 5 bed 4 bath house wouldnt look out of place around here. (by the way the planning consent wasnt for 1 bed and 2 baths, the plan just happens to create an opportunity to put a ensuite into an existing bedroom) .

Ive looked at similar properties in surrounding villages and they dont offer many clues as some villages are more sought after than others due to amenities and links etc but one thing I did notice is that there is quite a leap in price between a 3 and a 4 bed house but next to nothing between a 5 and a 6 bed house. That makes me wonder if the trend is such that going from a 4 to a 5 bed wont add much more value than it would cost to build.

phill99

An extension will add value if the cost of building is less than the increase in value. Sometimes this is the case, but in many cases, this doesn't happen. The difference in say.a 3 bed and a 4 bed house in the same street could be £15000, but it could easily cost £25000 to achieve it.