subject: Reinvest In Your Home For Renovation, It Will Payoff In The Long Term [print this page] The property market in the UK continues to struggle with a lack of mortgage finance, a shortage of buyers and prices continuing to fall. So, it's no surprise that many homeowners have scrapped plans to move and have instead remortgaged in order to improve their properties. If you have space for a conservatory or extension or if you have an unused garage or loft that you could convert then you could add significant value to your home. And, a remortgage can be the perfect way of raising the cash you need to complete the work.
There are few buyers in the marketplace in recent weeks, so it is very difficult for those who are looking to upsize. But you may be able to increase the amount of living space in your home by remortgaging and starting a home improvements project. You may be able to add an extension to realise your dream of a larger kitchen or an additional bedroom for guests.
Statistics in a reputable UK home magazine suggested recently that in the UK, hundreds of thousands of homeowners opt to undertake a home improvement project each year. That just goes to show that you're not the only one thinking about it.
The type of property you live in as well its location will determine what sort of renovation projects are feasible. Each project is different and the costs of the work and time taken to complete will vary wildly.
In terms of property extensions, you should plan for the project to take a number of weeks, and possibly even up to six months depending on the size of the project. Adding a new bathroom for instance may take longer due to plumbing requirements.
With the amount of lending for new mortgages decreasing in recent months, there has been little in the way of active movement with property purchases, which is one of the reasons that people are onw looking to improve their homes and stay put rather than go through the rigmarole of trying to sell in a stagnant market.
The equity in your property need not sit there locked up and untouched. By accessing this equity, you can improve upon your home to increase your standard of living, as well as adding value which is an investment in your future as the property can be sold for a higher amount in the years to come.
Whilst you might spend upwards of GBP 20,000 on a loft conversion, adding a valuable extra bedroom could make your property stand out from others on the market as well as adding much more than the cost of the work to its value. In addition, an extension to add extra rooms can also make your property more attractive to prospective buyers.
Extension projects can be cheap, non-disruptive or fast, but are rarely all three, Orme said, adding that it was difficult to save lots of money by doing a job quickly build because it usually means employing more workmen, at a higher cost. Likewise a build which keeps everything clean and stress free will also be more expensive.
Keep in mind too, that interest rates are due to increase in the latter part of 2011, and when they do, remortgage deals that are cheap will be harder to come by, as all lenders set their mortgage interest rates by the base rate in the UK.
