Adding Value to Buy Let Homes with Extra Space

There is a way to get the most value our of a let home by simply increasing space. The OnlineLetting Agents has reviewed a new report from Nationwide that was published on landlordzone.co.com that explores how adding a bedroom, bathroom, or extension can increase the value of the homes by up to 20%. This is a simply way to increase the value of the home, especially with loft conversions or extensions, that will have an affect on the value of the property for years to come.

Benefits of Adding Space

Adding space to a property is a great way to increase the value by a fifth of the overall price. It is also found that finding space for an extra bedroom adds as much as a 10% increase in value while an extra bathroom affects the price value by 5%. It has been shown in the research that buyers are interested in having extra space and are willing to pay more for the advantage as well.

The research was concluded once the house prices were reviewed before and after improvements. Even by increasing floor space by merely 10% can have a direct effect on the value of the property and can raise the value as much as 5%. This shows that even minimal improvement may have an affect on the overall value of the home once it is put on the market.

There is an added bonus as well when you opt to increase the space of a let home property. The cost of the improvement is fully deductible against any capital gain tax due on the chargeable gain when the property is sold by investors. That means that you may able to pursue extensions or conversions of the property without paying more out of pocket, potentially.

The Nationwide’s chief economist, Robert Gardner, was quoted as saying “We re-examined the factors that affect the value of the homes, and the potential to add value. Having more useable space is thought to be consistent with better quality accommodation and the people are prepared to pay for it. “

A second bathroom is considered to be a favorite component amongst homeowners, and research supports the fact that adding an extra bathroom can prove to be a desirable addition to a property.

Since the market allows for a higher value of the property with increased space, it is generally an advisable notion to take into consideration the process of adding space to a property. In the long run, it may help with having more revenue, especially if the property is being rented so that it can garner more revenue as time goes on.

The study also gives a clue to calculating property value, in which a one bedroom flat generally costs around 4,200 pounds per square metre, where a four bedroom house is priced at 2,000 pounds per square metre.

When taking into account the benefits of increased space of a property, this may give you insight to converting a home for more revenue.