Remortgaging for home improvements means increasing your mortgage advance to cover the cost of property improvements; for example, updating your kitchen, installing home security, or laying new flooring. As long as you add value to the asset, the mortgage lender will hold its loan.
However, it's worth noting that large improvements (such as an extension or loft conversions) require planning permission. Many lenders view this as high risk, so it's essential you gain consent from your mortgage lender before beginning your work.
Research from GoCompare Home Insurance has identified the most profitable home improvements from UK homeowners. The study found the installation of boilers, central heating and home security systems to be the most valuable; on the other hand, the cost of updating bathrooms or kitchens generally outweigh any potential profit.
GoCompare created a 'Property Investment Calculator' to highlight what work adds value to your home. The results were very revealing. A new boiler, double glazing and central heating created 4% more value, whilst knocking through rooms and kitchen renovations added 2%. Not far behind were garden makeovers and new bathrooms, as well as painting and decorating, with 1% additional value.
However, while new flooring neither added nor lost value, the GoCompare research found solar panel installation contributed a surprising 2% loss of property value!
In fact, according to data from the renovation website Houzz, the average UK home owners spends £19,640 on home renovations before they put their home on the market.
If you are one of these individuals, but are struggling with the financing, contact Vincent Burch. We offer valuable, bespoke advice about remortgaging for home improvement to help you add value to your asset. Give us a call on 01603 340 644 or email [email protected] for more information.
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