Thinking of renovating? Talk it over with your estate agent.
The market for home improvements and renovations is booming. Recent Office of National Statistics research shows that last year we spent nearly £30 billion a year on home improvements – that’s £43 million a week! A report from Nationwide Building Society found that home extensions or loft conversions can add 20% to a house’s value, or more than £42,000 to the value of an average property. It’s no wonder that we are seeing a renovation boom.
If you’re thinking of renovating there are a number of pitfalls to be aware of before pursuing these opportunities. Given the stakes involved I’d recommend talking over planned home improvements with a trusted local agent. This is absolutely crucial if the work is being done with the intention of adding value or selling on – some works make no difference to value. Others, such as increasing square footage or conservatories, can often add a lot of value.
In addition, some refurbishments will make a property more saleable but not necessarily more valuable. Bathrooms and kitchens can be costly to renovate but sometimes don’t change price point in any significant way. Therefore, taking good advice before you dive into a project, and considering your aims and objectives, is crucial.
Another pitfall is that renovators forget to consult their insurance policies before undertaking the work. If you don’t keep your insurance provider updated on major works you are undertaking, the policy could be invalidated, as it may not take into account the risks associated with a renovation or extension. A good broker is essential in this case, providing reassurance of a stable insurance policy and one that is not in breach of the property’s mortgage conditions.
Finally, are you sure that your property is insured for the right value? Although policies tend to be on the generous side in terms of an upper claims limit, when undertaking renovations and extensions, it is often easier than you might think to exceed this value. It is also vitally important that insured values are not confused with open market values. Insurance value is the cost of rebuilding the home, not the price of the property.
Thinking of renovating? Talk it over with your estate agent. Contact us for a discussion: York - 01904 625033, york@jackson-stops.co.uk
