If you're trying to save money, you can first consider avoiding getting an extension (or a loft conversion). Borrowing money and completing an extension project may seem counterintuitive, but it can actually save you money if the value of your home increases as a result of the work done (ideally by more than the cost of the work).
When you are moving forward with a project, you have a lot of options for cutting costs, but you should be aware that some shortcuts may actually end up costing you more in the end.
Why Would You Build An Extension?
The majority of us relocate because we need more room, whether it's a bigger family necessitating a larger kitchen, or a wider social circle necessitating a larger dining room necessitating a relocation. The dream of a fresh start in a new house quickly becomes a burden when you factor in the money you'll have to spend on things like surveyor and agency fees, stamp duty, and conveyancing.
If you need extra room in your home but don't want to move your family, a professional extension can be a cost-effective solution. Even better, an expansion can considerably boost the value of your property, providing it's done professionally. Get the opinion of a real estate professional in your area to find out if building an addition will be worth the investment.
One Storey Or Two?
Do you require a lot of space? When planning an addition, one of the most crucial factors to think about is how much square footage you'll need. Expecting a new member of the family soon? You may want to think about getting an extra bedroom and bathroom.
It's possible to extend the floor area without breaking the bank by constructing upward. Nonetheless, you could think that adding more rooms will increase the cost to you. The roofing and the foundation of an addition are the costliest parts. Hence, to get extra square footage for the same or almost the same cost, vertical expansion is the way to go.
Selecting The Correct Extension Size For Your Budget
Make sure the cost of the addition, including construction and finishing touches, is comparable to, or ideally lower than, the potential increase in your home's selling price before you commit to the project. To accomplish this, consult a seasoned real estate agent in your area. Looking for dual occupancy? Look no further! Home Builders has you covered.
Adding square footage to your home should raise its value, but you should be aware of any price caps in your area to determine whether or not an addition is worthwhile. The cost increases proportionally with the size of the addition.
Extensions with a smaller footprint may provide some more living space, but they are typically not worth the money.
Extending your home at a reasonable cost requires careful planning to ensure that it fits in with the rest of your home and is not too large. Instead of choosing for a less cost per square metre by building a single-story addition, you may want to think about building a two-story addition instead.
Is An Extension Less Expensive Than A Conversion?
It's important to consider whether or not repurposing unused space is more cost-effective than building an addition when planning an expansion.
Instead of spending a lot of money on a costly expansion, you might save money by converting a garage or loft that you rarely use into usable living or storage space.
But, there will be many situations where converting existing space is not possible and an addition is the only alternative if you want to stay in your current home.
What Is The Cost Of An Extension?
The following variables can have a significant impact on the final price of an extension:
- Build process (DIY and self-management, for instance, can save 30% on labour and materials)
- Extension type (Examples: bathrooms are much more expensive than bedrooms because of plumbing and electrical installation)
- Property's location (As an example, the cost of transporting materials to outlying places)
- Extension size (Increasing the size of an addition, for instance, decreases the cost per square metre)
- Materials (An example of this is the fact that using more expensive materials will result in a higher price)
- Quality of soil (The foundations are affected by the soil and land lay)
The cost of an extension can varies widely depending on a number of factors, but you can get a good idea by getting estimates from several professionals and, even better, getting multiple quotes from different vendors. A price quote, whether oral or written, is just a best guess, thus the actual cost could end up being more. Instead, a quote is a firm, agreed-upon price that cannot be changed. There should be a detailed description of the scope of service, an itemised cost breakdown, and an itemised VAT charge.
Saving Money Tips
You may be wondering whether and how you can afford to extend your home in light of the government's recent announcement of a home remodelling grant. Getting a home improvement grant is a terrific way to save money, but it's crucial to factor in every possible expense when planning a significant project like an addition.
Cost Of A Single-Story Extension Vs. A Second-Story Extension
It's reasonable to assume that the cost of a two-story addition will be greater than that of a similar first-floor addition. Extending into the basement typically costs less than adding on to the first story. In contrast to a ground-level addition, which requires foundations and an expensive concrete slab, a home lift typically just requires the removal of a few walls and the installation of steel beams. Extensive excavation may be needed to level the ground for a ground-level addition.
Living On-Site While Renovating
Building a second story onto your home could help you save money on construction costs, but you may end up spending more on living expenses afterwards. In the beginning of a second story renovation, you may not have access to your front door due to the lack of stairs. You may be able to stay in the house while a single-story addition is being built, but this will depend on the specifics of your new layout.
Beware Of Custom Fittings' High Costs
The cost of having massive entryways and windows cut to size to your specifications can be shocking. Customised fixtures are great if you have the funds for them, but if you need to save money on your remodel, conventional door and window sizes will serve just fine. At Home Builders, we offer a wide range of duplex build.
To Save Money, Measure Twice And Cut Once.
House renovation contractors are typically adaptable, allowing you to make changes to things like PowerPoint toggles, floor levels, and plumbing placement. Last-minute alterations, however, may incur additional fees. In order to save money, you should check that your plans are finalised before construction begins. This requires meticulous preparation, down to the placement of the PowerPoint slides, the light switches, and the carpeting. Hille's architectural designers will work with you to make sure your wants and preferences are taken into account, even if you don't know where to begin.
Do Not Forget About The Small Extras
Costs for things like garbage pickup, permits, and inspections are small on their own but may mount up rapidly. The total price of a house addition includes not only the architect, the contractor, and the building supplies, but also the expense of maintaining a safe and clean construction site in accordance with all applicable laws and ordinances.
Make Use Of Simple Construction Materials.
The same holds true for the cost of the project: it will be lower if the building materials and the interior fixtures are basic in design and straightforward to set up. Think on where things need to go in the new addition, too. In order to cut down on labour and material costs, it is preferable to locate a new toilet close to an existing soil stack rather than far away.
Include Standard Fittings In Your Plan.
If you're trying to save money, custom doors and windows might have to be out of the question. If you want to save money, you should probably go with rooflights instead of dormer windows or cast concrete subfloors instead of wood flooring.
Don't Be Swayed By Trendy Brands.
Keep in mind that store-brand or do-it-yourself items can often serve the same purpose as more expensive name-brand alternatives. For example, Dulux paint will do just as well as, if not better than, pricey, trendy paints that cost twice as much, and Metro-style tiles from a home improvement store will look identical to those from a high-end design boutique once they're up on the wall.
Keep The Foundations Simple.
Keeping the preliminary steps as easy as possible will also assist keep the price down. If you have the option and the space, you may want to locate your expansion away from any nearby trees, drains, sewers, or other subterranean services. Don't forget to add in the price of establishing solid foundations from the start.
FAQs About Home Extension
In expanding a home, builders often need to catch up on the larger picture instead of focusing solely on the square footage of the extension. Unfortunately, bigger is not always better when it comes to house additions. However, the impression of the additional room may only be achieved by increasing the home's footprint.
When it comes to the design of your extensions, you can choose from several options.
These include:
- architects
- architectural technicians
- specialist designers
- package build companies' in-house design teams.
The Building Regulations set minimum requirements for things like U values and airtightness that you can surpass by taking a fabric-first strategy to your new home addition.
If your property is poorly insulated, adding a thermally efficient addition will not make it cheaper to run overnight. Instead, it would be best if you focused on increasing the efficiency of the primary house during construction.
Before starting any work on a kitchen addition, choosing where your cabinets, stove, and other appliances will go is essential. This will allow for the placement of necessary utilities, such as electricity, ventilation, and plumbing. It's the same if you're planning a two-story addition and want to add a bathroom or en suite to one of the new floors.
The project's success depends on how effectively the new addition complements the existing structure. Although there are no strict guidelines, you should consider whether you want your new home addition to blend in with the original structure or stand out.
Avoid These Do-It-Yourself Hazards.
You need to ask yourself these questions before beginning any do-it-yourself job.
Are There Any Risks To Your Health Or Safety?
There should be no need to state the obvious, but you should never try your hand at something that could potentially endanger you or others. If you have a history of injuries to your joints or back, you may want to consult a doctor before taking on employment that requires heavy physical labour.
Will You Require Any Specialised Equipment?
As you'll need to hire a small digger, this is not the best location for performing your groundwork, for example. In spite of this, many of the projects for which we've provided recommendations will still necessitate a skip; this additional expense should be taken into account.
How Much Would Repairs Cost If Something Went Wrong?
You should be ready for the worst to happen, even as you hope for the best. It's one thing to mend a leaky pipe, but if you try to lay your own bricks, you'll have to spend a lot of money and cause a lot of disruption if something goes wrong.
How Much Time Will Diy Require In Contrast?
Do-it-yourself projects can save money in the long run, but they usually wind up taking longer. Because many people have day jobs and can only work on their projects at home in the evenings and on weekends, and because you may not be as efficient as a professional. This might not be as much of an issue if you can continue living there while the renovations are being carried out. But if you need to move into temporary housing during construction, you could end up spending more than you saved on rent each month.
Ways Of Financing An Extension Mortgage Your House
When you switch mortgage lenders, you are said to have "re mortgaged." Refinancing involves replacing an existing mortgage with a new one and agreeing to a new, typically longer, repayment term in order to raise cash. Our mortgage allows us to do that, so we can immediately get our hands on some much-needed capital.
It's important to keep in mind that your mortgage is essentially a large loan that is secured by your home. Raising the amount you borrow carries the risk that you may be unable to keep up with the payments and the lender will seize your house as a result. Because of this, before you commit to an extension, make sure you have a thorough understanding of all the associated charges. See the mortgage and money advice sections for further details and helpful hints.
Use Savings
The most obvious benefit of this choice is that you can avoid taking out any more loans to finish your extension if you already have savings available to you. Yet because savings rates are low right now, you might want to think twice before spending so much of your own money all at once. Weigh the interest you would pay on a loan versus the time it would take you to save up again (or if you even need to). It's ultimately up to the individual, as everyone has their own set of unique circumstances. Notably, some of the best savings account bargains may limit your ability to withdraw substantial sums of money.
Pay Using Your Credit Card
Putting the cost of a modest or moderate home addition on a credit card is an attractive option. If you decide to go this route, it is important to make sure that any new credit card you get to pay for the work has a 0% introductory rate or you will wind up paying a lot in interest.
Using a credit card can help safeguard your finances because of the Consumer Credit Act's Section 75. Having this can be a lifesaver if any issues arise throughout the building, such as if the contractor you hired to build your extension doesn't show up or doesn't do the work.
You should give serious consideration to whether or not you can afford the repayment plan before submitting it to the mortgage lender. Furthermore, be wary of any additional costs that may be associated with such expenditures. Keep in mind that the APR for both purchases and cash advances on credit cards can be extremely high. Check out our range of dual occupancy builder for your dream house.
Explore Your Alternatives For A Second Mortgage.
Mortgage refinancing, or a second mortgage, is the process of keeping your present lender but switching to one that will provide you a new interest rate and payment term. If you choose this option, you will need to make payments on both mortgages simultaneously. Because you'd be raising the amount of borrowing secured by your house, maybe at a rate that's higher than your current mortgage, careful consideration is warranted before making such a move.
Second mortgages are attractive since the lender's risk is mitigated by the security offered by your home, resulting in a cheaper interest rate compared to, for instance, a credit card or a personal loan.
Apply For An Unsecured Loan
You can get a bank loan or some other kind of unsecured loan if you don't want to borrow more against your property.
While the borrower's property (or other valuables) serves as collateral for a secured loan, the borrower's credit history is the primary consideration in determining the terms of an unsecured loan. Unsecured loans include things like those used to make house improvements. If that describes you, then this particular loan could be the most suitable option.
A good loan with a fixed interest rate and a term of up to five years of payments may be available to you. Your credit score is a three-digit number used by lenders to assess how much of a danger you represent when you borrow money. Loan amounts and terms can both affect your interest rate.
Investments in house expansions that boost resale value and provide much-needed living space often prove to be excellent choices. With little forethought and investigation, you can buy a house using either your funds or one of the loan options listed above.
Conclusion
Don't request an extension (or a loft conversion) to save money. According to popular belief, you'll profit if you borrow money to pay for improvements and your property's value rises. Professional extensions can enhance space without relocating. In expansion planning, square footage is crucial. The vertical expansion adds space cheaply. Before starting the project, ensure the addition's cost equals or is less than the potential increase in your home's selling price.
Discuss house additions with a real estate professional. Consider local price caps before expanding. Build on or reuse space when growing. Comparing professional and shop quotes may help you estimate an addition's cost. A quote should detail the service, pricing, and VAT.
Although the current government incentive for home renovations is excellent, it is vital to account for all potential costs before commencing such a large project. Basement extensions cost less than first-floor additions of the same size, but second-story additions cost more. Ground-level expansions may require extensive excavation and large doors and windows. Last-minute renovations may cost more. When expanding a home, consider the cost of an architect, contractor, building supplies, and keeping the work site safe and sanitary.
Straightforward construction and interior furnishings should reduce project expenses. Avoid expensive custom doors and windows. Homemade or generic alternatives often work. To simplify setup, place the new building without above utilities, trees, or drains. Ask these questions and plan a backup before starting anything new. DIY projects cost more than renting but save money over time.
Refinancing necessitates a new mortgage and lengthier payments. Low-interest rates emphasise extension costs. Instead, use a new credit card with a 0% introductory rate for moderate home improvements. Credit cards can help you manage your finances, but you should know the APR on every transaction and cash withdrawal. In a second mortgage, you keep your present lender but switch to one with a different rate and term.
Content Summary
- If you're trying to save money, consider avoiding getting an extension (or a loft conversion).
- Borrowing money and completing an extension project may seem counterintuitive. Still, it can save you money if the value of your home increases due to work done (ideally by more than the cost of the work).
- A professional extension can be a cost-effective solution if you need extra room in your home but don't want to move your family.
- Get the opinion of a real estate professional in your area to determine if building an addition will be worth the investment.
- The roofing and the foundation of the addition are the most costly parts.
- Hence, vertical expansion is the way to go to get extra square footage for the same or almost the same cost.
- Ensure the additional cost, including construction and finishing touches, is comparable to, or ideally lower, the potential increase in your home's selling price before committing to the project.
- Adding square footage to your home should raise its value, but you should be aware of any price caps in your area to determine whether or not an addition is worthwhile.
- The cost increases proportionally with the size of the addition.
- Extending your home at a reasonable cost requires careful planning to ensure that it fits in with the rest of your home and is manageable.
- It's important to consider whether or not repurposing unused space is more cost-effective than building an addition when planning an expansion.
- But, there will be many situations where converting existing space is impossible, and an addition is the only alternative if you want to stay in your current home.
- You may be wondering whether and how you can afford to extend your home in light of the government's recent announcement of a home remodelling grant.
- Getting a home improvement grant is a terrific way to save money, but it's crucial to factor in every possible expense when planning a significant project like an addition.
- Building a second story onto your home could help you save money on construction costs, but you may spend more on living expenses afterwards.
- At the beginning of a second-story renovation, you may need access to your front door due to the lack of stairs.
- To save money, check that your plans are finalised before construction begins.
- The total price of a house addition includes not only the architect, the contractor, and the building supplies but also the expense of maintaining a safe and clean construction site in accordance with all applicable laws and ordinances.
- The same holds for the project's cost: it will be lower if the building materials and the interior fixtures are basic in design and straightforward to set up.
- Think about where things need to go in the new addition, too.
- To cut down on labour and material costs, locating a new toilet close to an existing soil stack is preferable rather than far away.
- Keeping the preliminary steps as easy as possible will also assist in keeping the price down.
- Remember to add in the price of establishing solid foundations from the start.
- It would be best to ask yourself these questions before beginning any do-it-yourself job.
- Do-it-yourself projects can save money in the long run but usually take longer.
- When you switch mortgage lenders, you are said to have "re-mortgaged."
- Keep in mind that your mortgage is essentially a large loan that is secured by your home.
- Because of this, before you commit to an extension, ensure you thoroughly understand all the associated charges.
- The most obvious benefit of this choice is that you can avoid taking out any more loans to finish your extension if you already have savings available to you.
- Yet because savings rates are low right now, you should think twice before spending so much of your own money all at once.
- Weigh the interest you would pay on a loan versus the time it would take you to save up again (if you even need to).
- Putting the cost of a modest or moderate home addition on a credit card is an attractive option.
- Using a credit card can help safeguard your finances because of the Consumer Credit Act's Section 75.
- Remember that the APR for purchases and cash advances on credit cards can be extremely high.
- Mortgage refinancing, or a second mortgage, is keeping your present lender but switching to one that will provide you with a new interest rate and payment term.
- You can get a bank or unsecured loan to avoid borrowing more against your property.
- While the borrower's property (or other valuables) serves as collateral for a secured loan, the borrower's credit history is the primary consideration in determining the terms of an unsecured loan.