House Extension

Moneygrabber89

First of all apologies if this thread is in the wrong section.

I am considering extending my 3 bedroom semi detached house. This would be a double story extension adding a bedroom with ensuite and also extra living space downstairs. Our plan is to live in this house for maybe 3 or 4 years and then move when child is old enough for school catchment area.

My concern is money (hence why I'm here lol). When I've looked the average extension is 40k in NE England however extensions usually only add 20% value apparently therefore only making 32k. If this was the case the extension would cause us to loose 8k in value. 

Am I looking at this correct? I can send a picture of outside of house if this would help or send link to the estate.
Thanks

davidmcn

What effect it'll have on value will probably be quite specific to the neighbourhood and property, not something usefully generalised over a whole region. Can you find examples of property values from similar nearby extended houses? 

anselld

Extensions, especially double storey, don't usually make a profit except in places like London where space comes at a huge premium.  However, you are presumably doing it in order to have better living accommodation during your time of ownership so you need to factor in that being worth something.

Doozergirl

There's no such thing as average % house price increase.  It depends entirely on how much the house is worth.   How much is it worth?

 You can divide the house price by the number of square metres in your house and that gives you the price per square metre.  You can then compare that to a very rough average price per metre for an extension, which I would is reasonably at least £1500k. 

If the house price per metre is less or very close to the building cost per metre, it isn't worth doing, you are better off buying elsewhere and moving.  

I'd be very surprised indeed if a double storey extension could be built by a reputable builder for £40k.    

UnderOffer

I think 3 years is a short length of time to occupy a house after spending 40k on an extension, would it not be better to spend the money on a house move now to the catchment you really want to be living in? 

Moneygrabber89

My house is currently worth 160k

Moneygrabber89

I just assumed adding extension would add value leading us to afford better home in the catchment area in the future but it appears I'm wrong 

Moneygrabber89

On another note. The 4 bedroom detached houses in the street are currently selling for around 300k. Would this be any relevance?

Doozergirl

Moneygrabber89 said:

On another note. The 4 bedroom detached houses in the street are currently selling for around 300k. Would this be any relevance?

Not really, because they are detached and will have a higher value per square metre because of that.   The comparison would have to be a 4 bed semi.  

Do you know the area of your house?  

On gut alone, considering the size of a typical 3 bed semi, I don't think it's worth extending.  

Apintplease

Moneygrabber89 said:

On another note. The 4 bedroom detached houses in the street are currently selling for around 300k. Would this be any relevance?

Not really as those houses were built to the size of their plot - you are going to be eating into your garden and possibly stretching to your boundaries 

What you do need to do however is work out how much it costs compared to quality of lifestyle. If its only 2/3 years, can you not cope with what you have?

We did build an extension on our mid terrace, (It was hell on earth with neighbour issues but thats by the by ) and we got the value back out, but thats because my husband is a builder, friends in the trade worked for the price of materials and we only paid trade prices. We sold after 10 years, but only having before the extension a living room and a gallery kitchen with a bathroom shoved under the stairs before the extension, we did improve the house

You need to be looking at what 4 bedroom semis command - along with the size of garden and parking spaces 

Moneygrabber89

Our plot is a really big corner plot with front side and back garden. It's the best plot on the street and most land.

I think I'm better not doing this by the sounds of things