Homeowner interest in house extensions reached an all-time high in 2020, as a complex mixture of a growing house market, extended periods of time spent at home and decreased selling intention among the UK population spurred thoughts on building homes out to suit new needs. But what exactly are the benefits, and how can the average homeowner bankroll such an expensive endeavour?
The Benefits of a House Extension
Extending your house can confer a number of benefits, of different kinds. The first, and perhaps most important, is the improvement of your living situation through the creation and allocation of more space. This is especially beneficial for the growing family, where the arrival of a new child necessitates more space in which to raise them. Another key benefit lies on the financial side, where creating additional living spaces in your home can increase its value by a significant degree. In this way, extensions represent an investment in your property, from which you can stand to gain not only with regard to initial property value, but also the appreciation in the housing market.
The Costs Involved in Extending Your House
Of course, the benefits of building an extension, whether personal or financial, are necessarily preceded by the cost of completing one. While the general expense of extending a home is well-known, the specifics of how that expense comes about might not be immediately obvious to someone who has never embarked on such a project before. Building an extension is not as simple as the cost of parts and labour; there is an initial cost attributed to applying for planning permission, and an architect or other professional designer needs to draw up comprehensive plans for the extension. The former is a nominal fee, but the latter is more or less a requirement – and a significant portion of any expenditure on an extension. ‘Design and Build’ contractors exist, who can manage the blueprinting and construction of an extension in-house – but their costs will nonetheless reflect the expertise and labour of a design professional.
Methods of Financing a House Extension
Coming up with the money to pay for an extension can be a difficult process; not many have the disposable income to purchase an extension outright, making other means of guaranteeing the money a crucial part of the extension planning process. Many opt to take out a personal bank loan in order to afford the works, while some might use credit cards to cover the cost – but those with a poor credit history might find themselves struggling to get approved for either. Bad credit loan providers like Evolution Money present opportunities for those with bad credit to secure short- or middle-term personal loans, enabling them to start their project.
Re-mortgaging is also an option, where you strike a new deal with your mortgage provider to include your home’s current value and the cost of your extension – giving you a short term injection of funds to complete the work, and a new long-term deal to repay the money.
