How much will I add to the value?

Sausage11

On a similar thread I was reading that it's really adding size that adds value to a property. I wondered what are people's thoughts about how this works.

We bought a 2-bed bungalow for 225K. It's about 75 sq metres. We're extending it into a 3-bed house of 125 sq metres and converting the garage into a 6.3m x 4m granny annexe. We intend to stay here for some time but when we sell I believe we'll be able to sell it as a 4-bed house with 144 sq metres of living space.

I appreciate that some people won't like the loss of the garage but there is space to park 2 cars on the drive.

If 225K / 75 = 3K / sq metre, do you think you can give a ballpark future value as 144 x 3 = 432K?

How much might the loss of the garage count against us? And by how much can you breach the past value ceiling on a street? (Ours would become the most expensive but also the largest house.).

lessonlearned

How much value you would be adding depends on a lot of factors. You may not add any at all you could even detract from the value.

Bungalows are a law unto themselves. Some can be upscaled beautifully, some end up as white elephants.

A few questions.

Is it a detached bungalow, how big is the garden, how do you propose to put in a third bedroom i.e. loft extension or side extensions. Will you be adding any additional bathrooms. Will you have enough living space to counterbalance the additional bedroom.

If it is a semi with a smallish garden then you run the risk of over-developing the plot and you could actually undermine the property's value. A common mistake with extensions.

When you say granny annexe what exactly do you mean. Will it be a self contained unit with separate access, own bathroom, own sitting room and small kitchenette. If so then 6.3m x 4m is going to be a tight squeeze. If it's just a bedroom with an internal access to the main house then it's not an annexe it's just an extra downstairs room.

The problem with converting bungalows is that you can risk ruining it's USP (Unique Selling Point) - especially if you go for an attic conversion. There is a danger that you alienate it's original intended market i.e. elderly and/or disabled people and yet you don't really appeal to a broader family market.

If you do go for an attic conversion then it should be big enough to build in an extra bathroom, making a master suite.

Taking all this into consideration upscaling a bungalow can work but only if it is a very well designed and skilfully executed project and only if the plot is big enough to take it.

As for the loss of a garage - well you'll get lots of different opinions on this. A lot will depend on the size of the garage.

A lot of older garages aren't big enough for the average family car so aren't really fit for their original intended purpose. Cars are much bigger than they used to be - even minis are super sized compared to the originals. However, a lot of people would hate to be without a garage because they fear they would have nowhere for their junk and garden paraphenalia.

You would need to compensate for the loss of garage with a decent sized shed or similar. If you can manage it a nice summerhouse would look better. You can get summerhouses with a separate storage area for garden tools etc.

bouicca21

Is it the sort of street and neighbourhood that people desirous of a 4 bed house would want to live in? Will it still have a decent garden? Where in the country is it and what kind of people buy there? What do 4 bed houses in other streets nearby go for?

Without lots of further info then it's more or less how long is a piece of string.

Sausage11

Thanks for such a detailed reply:

lessonlearned wrote: »

How much value you would be adding depends on a lot of factors. You may not add any at all you could even detract from the value.

Bungalows are a law unto themselves. Some can be upscaled beautifully, some end up as white elephants.

A few questions.

Is it a detached bungalow, how big is the garden, how do you propose to put in a third bedroom i.e. loft extension or side extensions. Will you be adding any additional bathrooms. Will you have enough living space to counterbalance the additional bedroom.

Semi. Currently 2 bed 1 bath, 1 bed on ground and 1 in loft extension. Small garden. Architect designed to add a lot of space with minimal ground floor extension so as not to dominate plot. House will be 4-bed 3 bath with 1 bed on ground floor, 2 in loft, 1 bed in separate annexe. 1 bathroom upstairs, utility/shower room downstairs and en-suite to annexe. Although ground floor extension is modest in comparison to overall space addition we will be adding quite a large amount of living space alongside the extra bedrooms.

If it is a semi with a smallish garden then you run the risk of over-developing the plot and you could actually undermine the property's value. A common mistake with extensions.

Yes, we're really keen and have designed the house so as to avoid over-developing.

When you say granny annexe what exactly do you mean. Will it be a self contained unit with separate access, own bathroom, own sitting room and small kitchenette. If so then 6.3m x 4m is going to be a tight squeeze. If it's just a bedroom with an internal access to the main house then it's not an annexe it's just an extra downstairs room.

I may have used incorrect terminology! Own bathroom but no kitchen/sitting room. It will be built on the old detached garage site. We'll be using it as an office and occasional guest room. But it will be fully habitable and purpose built to satisfy building regs.

The problem with converting bungalows is that you can risk ruining it's USP (Unique Selling Point) - especially if you go for an attic conversion. There is a danger that you alienate it's original intended market i.e. elderly and/or disabled people and yet you don't really appeal to a broader family market.

If you do go for an attic conversion then it should be big enough to build in an extra bathroom, making a master suite.

We're adding a second bedroom plus a family bathroom upstairs. Also a good sized walk in wardrobe area off the master.

Taking all this into consideration upscaling a bungalow can work but only if it is a very well designed and skilfully executed project and only if the plot is big enough to take it.

As for the loss of a garage - well you'll get lots of different opinions on this. A lot will depend on the size of the garage.

A lot of older garages aren't big enough for the average family car so aren't really fit for their original intended purpose. Cars are much bigger than they used to be - even minis are super sized compared to the originals. However, a lot of people would hate to be without a garage because they fear they would have nowhere for their junk and garden paraphenalia.

The garage was detached and 6.3 x 4m so was huge when compared to the original house. It was a difficult decision to get rid of it but putting in the office/guest suite suits our lifestyle.

You would need to compensate for the loss of garage with a decent sized shed or similar. If you can manage it a nice summerhouse would look better. You can get summerhouses with a separate storage area for garden tools etc.

We will be putting in a decent sized shed.

Property is in North Herts and is commutable to London. Backs onto fields / children's playground and football pitches / a nature reserve. We're putting in a balcony to overlook the garden / rear of the property. It's a lovely spot.

Work has just started so I'm curious as to what people think. We're going for quite a high spec and we realise if we were just going to flip it we'd spend less and would have retained the garage. But we intend to be there for at least 3 years (in the catchment for an excellent primary school) so we want to make it right for the way we live.

Sausage11

bouicca21 wrote: »

Is it the sort of street and neighbourhood that people desirous of a 4 bed house would want to live in? Will it still have a decent garden? Where in the country is it and what kind of people buy there? What do 4 bed houses in other streets nearby go for?

Without lots of further info then it's more or less how long is a piece of string.

Thank you.

See above for replies to some of your questions.

In our street there is an extended 3 bed on sale at 345. Ours will be considerably bigger, similar plot, better location within the street and (in my view of course!) much better in terms of design. I'm pretty sure ours will be the only 4 bed in the street.

4 beds in nearby streets (considered a slightly better location) go for about 400 to maybe as much as 600K. Lower end would be semi and considerably smaller than ours. Upper end detached and probably similar size overall.

lessonlearned

It's good to see that you have considered the ratio of living accommodation to bedrooms. So many people overlook this.

The balcony is a nice touch. You definitely need to make the best of any views and of course if you have a small garden it will make some valuable additional outside space. However, only if it is a proper balcony large and strong enough to accommodate a small seating area. A Juliet balcony whilst pretty is not so valuable.

The office/guest suite complex is a great use of a large unwieldy out of proportion garage. A lot of people love the idea of a specially designated office space,

I still have some doubts about extending a semi to such an extent, although in your location it should be ok because of your proximity to London.

However, developing a semi to the sort of level you are doing would not work in all locations. In my neck of the woods you would have to tread very carefully because the overall selling price would not necessarily give you a good return on your investment.

tealady

And don't forget it will possibly push your house into the next ratings band.

MobileSaver

Sausage11 wrote: »

If 225K / 75 = 3K / sq metre, do you think you can give a ballpark future value as 144 x 3 = 432K?

I'd say not a chance; that's not how people value property - most people in the UK wouldn't have a clue what size their house was in sq/m.

Sausage11 wrote: »

And by how much can you breach the past value ceiling on a street?

People generally value property based on the number of bedrooms, location and whether semi or detached.

Your house will still be in the same location and still be a semi so the relative price people are prepared to pay will be based on the extra bedrooms. In your particular case one bedroom is on the ground floor and one bedroom is in a separate annex; while this arrangement may suit some people, for many people it will be less than ideal.

A lot of people wouldn't even consider a semi (I wouldn't) and similarly a lot of people wouldn't consider a bungalow so your potential buyers are reduced already. As lessonlearned pointed out your changes run the risk of putting off the very buyers who would normally be interested in a bungalow.

Of course you may get lucky and when the time comes find a buyer that loves your quirky layout but doubling the floor space equating to doubling the value is a pipe dream in my opinion.

Good luck with the project - I'd say make the house your home, enjoy the changes you want to make for your own benefit and don't get too hung up on what the property may or may not be worth many years down the line.

lincroft1710

tealady wrote: »

And don't forget it will possibly push your house into the next ratings band.

If you mean Council Tax band, then this cannot be increased on account of alterations or extensions, until after the property is next sold.