It is always easier to sell a newly renovated property, particularly when time is of the essence; such as if you are staving off repossession proceedings. But funding them can be difficult, even nigh on impossible once you are in the downward spiral of mortgage arrears and mounting debt. Refurbishment works can add value to your home can add significant value, which is especially important if you need to sell your home to solve your debt problems. But what is the best way of adding value to your home in the shortest space of time? How do you get the funds? And which house refurbishment offers the best return on the money you have put in?
Adding value to your property with home improvements can really give you a head start on the housing market in terms of a quick sale. By boosting the value of your home, it allows you to sell at the top-end of your property’s market price and could help you pay off further outstanding debts, and avoid or delay an impending repossession.
A Home Renovation Study in 2019 by self-storage experts Safestore found that homeowners around the UK looked for different things when improving their home. In Birmingham the most popular house refurbishment was a loft conversion (28%), the least popular was solar panel installation (0%). Whereas in London, the trend was for open-plan transformations (44%). Solar panels fared only slightly better here than in Birmingham at 1%.
It is always sensible to consider the market in your area and where your home is situated within it. At Faster Property Solutions, our property experts will help you decide which improvement best suits your home and help it obtain the best selling price possible.
At a Glance: What adds value to a house?
RETURN OF INVESTMENT
|2,200 – 7,200
|15,000 – 50,000
|4,800 – 7,200
|4,995 – 7,500
|4,000 – 6,000
|2,100 – 4,500
|10,000 – 25,000
|400 – 2,250
|800 – 4,200
*All figures quoted based on average prices across the UK in 2020
There are ways to transform your property without getting the builders in.
Cheap ways to add value to your home for less than £5,000:
Cosmetic works such as painting, and decorating are usually the cheapest and most popular way of breathing life into a tired home. If you plan to sell your home, a neutral colour palette such as white or cream, or the colour that strikes horror into the heart of all professional decorators – magnolia – will turn a property from dated to modern with the spin of a roller.
But be careful, not everything will add value to your home:
Something as simple as not having the right certification can knock thousands of pounds from the market value of your home. If you have works done, ensure you always obtain and then retain the appropriate planning permission.
Any changes you make must take into account the ceiling value of your home. If you spend tens of thousands of pounds on a high-end renovation, you could end up losing money on the investment if it is overly bespoke. You can check your house value online here at the government’s house price trend checker, or ask your local estate agent.
Always bear in mind the direction the market is travelling: is it going up or is it in free-fall? You can get a property value estimate from your local estate agent but there are also websites that can help, such as MoneySavingExpert that can direct you to free valuation websites (note that computers are not as good as humans to assess property values yet!).
Knocking down walls can have the same effect as knocking down the house value. Buyers see extra rooms as adding to a home’s functionality. A home with a separate living and dining area can be made into a playroom for a family with young children, whereas one big room limits such possibilities. Of course, there are always exceptions to the rule, and some well-designed open-plan living spaces can also add value to your home. It is becoming popular amongst the older generation to want a property that can cater for any future mobility issues.
As with all house refurbishments, do your market research first.
How to Finance a House Refurbishment
Choosing the wrong way to finance your house refurbishment can prove costly. Let’s be honest, most of us don’t earn enough to make ends meet let alone being able to put money away for home improvements. What if you have a lot of personal debt you are struggling to pay that makes even simple renovation projects impossible? How can you get those pricier renovations done when there’s no money in the pot?
Releasing equity is one way to fund home improvements. If you are over 55 you can release tax-free cash from your home and use that, alternatively, perhaps you can borrow on top of an existing mortgage.
But what can you do when neither of those options are available to you?
What help is out there if you have to sell your property, but it desperately requires an upgrade to make it saleable?
At Faster Property Solutions we can help you with a cash advance. Working in partnership with you, we assess your situation and property to see how we can add value to your home; for example by adding a loft extension or converting a garage. You are involved in every decision and nothing is done without your full agreement. We can even arrange for you to be temporarily housed off-site should it be difficult to live in your property during the refurbishment.
How It Works
We arrange for the agreed refurbishment work to be carried out by experienced and qualified building experts, taking all the stress and strain out of what can be an extremely anxious time. Once you are ready to sell, our experts are on hand throughout the process to help you every step of the way.
Can you help with my other debts?
If you have other debts you are struggling to pay, we can help. A cash advance can stave off imminent repossession and allow you to stay in the property until it can be sold.