How much value will your extension add to your home?

Feb 1

One of the most common questions we get asked is whether a home extension is going to add value to a home and if so, how much.

In many cases, we’re talking to people who have perhaps started a family or are looking to their future and their retirement. They need to create extra space and/or want to increase the value of the property so they can get the most return when they come to sell - either to downsize or upsize - in several years’ time.

But when it comes to how much value an extension will add, it depends very much on how much the house is worth already, the location, the size of the extension, and what the extension is going to be used for. Let’s take a look…

Kitchen extension

The kitchen is the heart of the home, and so properties are often sold on a good size, well fitted kitchen. If your kitchen is lacking in space then a large single storey kitchen extension (done well with an average spec of fixtures and finishings) could improve the property value by around 15% on an average three-bed home.

Kitchen extensions are the most popular projects we see as architectural designers. However, the value a kitchen extension adds would depend on the existing configuration; you’re going to increase the value of the property more if you’re opening up a narrow galley kitchen than you are if you’re merely extending a kitchen that’s already a decent size in a new build house.

An extra bedroom

The number of bedrooms in a property has a big impact on the sale price and adding one - particularly a decent size master suite - is likely to add significant value (around 10-20%). But if you were to add a double storey extension to create an extra bedroom and some extra living space downstairs, the cost you put into it is going to most likely be near enough the same amount you get back.

A simple porch

Extending to create a porch is not only a great way to boost the kerb appeal of a property but also its value and the work isn’t likely to cost the earth. A small porch would cost around 5K-8K and could double in value when selling your home.

Loft conversion

A loft conversion is also something worth looking at. It costs less than an extension and although it probably won’t add as much value as a double story extension, we would still estimate a loft conversion could add 15% to the value if a large master suite is being created, using dormer windows to increase the floor area.

Our advice

Be careful how much money you spend on your project if you are hoping to recoup the value when it comes to selling. By no means go ‘cheap’ on the fixtures and fittings but you’ll most likely need to wait several years to get back what you put in. If your new extension is going to increase the value of the property by 20%, you can expect to have paid 15-20% of the end property value for the build itself.

And remember that regardless of what you add to your house, there’s a limit to what people will pay for a property on your street so watch you don’t extend beyond the cap. And when it comes to new builds, extending is likely to add zero to your property value.

But don’t worry so much about what value it’s going to add. Extend for you and your family, not just to add value. If you need the extra space and it’ll make you happier and more comfortable - and you can afford it - then go for it. As long as you don’t lose the investment in the long run, you’re on to a winner.

How we can help

Our team at The Practical Planning Company is highly experienced in all aspects of architectural design. If you’re based in the East Midlands and you’d like to book in with our Nottingham team for a free, no obligation design consultation where we can chat about your home extension, please give us a call on 0115 874 8570 - or hit the button below.

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If you’re not quite ready to get started, or you’re based elsewhere in the UK, please feel free to check out the rest of our Advice Centre - and connect with us on Instagram and Facebook for tips and inspiration.