Will An Extension Add Value?
Extra Living Space
As families grow you need extra living space, so is it worth building a residential extension instead of moving? Increasing the floor area of your home usually adds more value than it costs, but you do need to consider a number of factors before deciding.
How Much Do Extensions Cost?
We work with clients who want excellent quality and so build costs are higher than average at between £2,000 and £2,500 per m2 (2019). You need to add to that full service professional fees and 20% VAT so the total price you pay will be between £2,800 and £3,375/m2
The floor area of an extension is worked out by measuring the area inside the external walls, so called gross internal area and applies to all floors. Basements are different and generally more expensive.
So the build cost for example of a 50m2 extension is therefore between £105,000 and £125,000, but including VAT and professional fees it's £140,000 to £168,750.
How Much Does It Add To Your House Value?
We recently came across this very useful online calculator from the Office of National Statistics that gives you an answer to that question.
In Tunbridge Wells for instance, the value added per square meter is £3,768, so even at the highest build cost, overall an extension adds value.
However there is a ceiling price in every area. Above that buyers will be tempted by other areas that give better value. Many buyers see the worst house in a street as having the most potential for improvement, whereas buying the best in the street leaves little scope for added value.
Move or Improve?
One good way to assess whether extending is worthwhile is to work out the cost of an extension, add that to the current house value and see what you could buy elsewhere that gives you the space you need for the same money.
One other way of looking at the value of an extension is from a future buyers point of view. One day you will sell you house and if the buyers see the same value as you did in the improvements you have made, the value will be maintained.
How To Design The The Perfect Extension?
Having decided to go ahead, start to think about what you need. Take a look at our website page How To Design The The Perfect Extension for ideas and how to go about it.