Don’t over-extend your budget when improving a house
Unless you manage your project carefully, costs can soar
IF you want to improve before or instead of moving, new rules mean you can extend your property further than before without formal planning permission – provided your neighbours are on board. But costs can quickly sky-rocket if you don’t budget carefully. For those who need to borrow, personal loans can be a better choice than extending your mortgage, depending on your circumstances.
These start at less than three per cent, but unlike many home loans, there are no fees and you generally repay over three to seven years.
Extending your mortgage can be expensive and complex in comparison. Sainsbury’s Bank says around one in three loans are used for
home improvements.
But these have become larger – its average lend for this purpose was £9,352 five years ago rising to £12,374 last year.
DIY remains the best deal for those who are confident they can carry out the work – legally you can do most things at home except for work involving gas.
However, most larger home improvements such as new kitchens, bathrooms, loft and other extensions, need professional input once you are past the “imagining” stage.
With all the adverts for “half price kitchen units”, it’s easy to forget that the cupboards could be as little as a third of the total bill once labour, worktops, new appliances, electricals and plumbing are taken into account.
The price you see for a conservatory probably won’t include the cost of the base which can easily add on half as much again – and that’s before you talk about flooring, furniture and heating.
You should also consider the disruption any home improvement is likely to cause. A complete new kitchen can take a month.
Having your home rewired to meet modern standards or to upgrade the socket count is likely to take six to 10 working days for a three-bedroom home.
Expect to pay £3,000 to £4,500 depending on where you live with an extra £700 to £1,000 for each additional bedroom (or less if you have fewer than three).
Another project many undertake is upgrading a home heating system. Expect to spend around £3,500 for a typical three bedroom home and if you have three storeys.
But if you are getting rid of an old electric storage heating system or an inefficient boiler, you will save money on energy bills.
It’s easy to forget that cupboards could be as little as a third of the total bill... It all mounts up when planning a kitchen