More homeowners now prefer to extend their current home than to move house. Rising house prices, associated costs and the uncertainty of moving to an unknown area, mean that more people are now turning to Garage conversions, loft conversions and, single and double storey extensions as a great way to expand the size of their house. Whether it be to add an extra bedroom, toilet, or utility room, extending your home is also a great way to add equity to your home over the long term.
The exact amount of equity an extension will add depends on many factors, such as location, market value, ceiling limits and whether the property has already been extended. Spending £10,000 on a garage conversion and converting it into a habitual living space will certainly add value to your home, and will of course increase your living floorspace. If you currently own a 3 bedroom house and you plan to extend it to 4 bedrooms, it would be a good idea to look at how much 4 bedroom properties sell for in your area. This will then give you an idea of how much your house could be worth, less any building costs.
We are aware of many property developers in Birmingham who are always looking for the opportunity to buy property for cash, with the aim of adding equity to a property, provide a quick return on investment and then to sell my house fast. Typically, extensions cost in the region of £1200 per square meter. So, for example, if you are building a 4m by 3m single storey extension this would come out at £14,400 (3 x 4 x 1200). If you are having a double storey extension, then the general rule of thumb is to multiply this figure by 1.5. So a 2 storey extension would come out at £21,600 (4 x 3 x 1200 x 1.5).
The above figure covers the general cost of the building project including basic plumbing & electrics to a reasonable finished standard. If you are planning to have a high end finish, this will add extra costs into the project. Kitchens, bathrooms, downstairs toilets, will all add additional costs for the fixtures and fittings, and so would having to move the gas or electrical meters.
These figures should be used just as a guide. There are many other elements within a building project that could increase the cost. For example if you need deeper footings, or your house is built using stone rather than bricks, this will add additional construction costs. These fees also do NOT include: planning applications, building inspector costs, drawings and plans.
With all building projects, we recommend that you allow for a 10% contingency plan. So for your 2 storey 4 x 3m extension, you should have a contingency budget of around £2160.