QUICK GUIDE: HIDDEN COSTS

Don’t forget that there are some extra things you’re required to pay for with a renovation project on top of simply the cost of updating the property. Here are some key elements you’re likely to need to budget for:

Surveys & planning application It’s highly recommended to get a professional in to investigate the condition of the building before you buy – the more probing needed, the higher the cost. If you need to apply to your local council for permission to work on the property, that will come with a fee, too.

Stamp duty & legal fees The price of buying a building comes to more than simply the value of the dwelling. Firstly, there are the solicitor costs involved. Stamp duty is another. If you already own a property and are buying a second to work on, even if you’re intending to move into it once complete, you will have to pay a higher stamp duty because it’s an additional dwelling. But if you sell your former residence in 36 months you’ll be eligible for a refund.

Rent If you’ve sold your previous home to fund your renovation project, it’s unlikely that you’ll be able to live in your recently purchased home while works are being done. So don’t forget to price up the cost of renting before you press ahead.

Finance interest If you borrow money to pay for the major works on a building, remember that you’ll be paying interest back on the loan, so don’t forget to factor that into your overall project budget.

VAT Self builds are exempt from paying VAT, but you’ll need to pay the usual 20% on most renovations.

Contingency No matter how prepared you are when pricing up the elements of your major home improvement venture, it’s absolutely crucial to have money put aside in case something unexpected crops up – which it almost always does. At least 15% of your overall budget is prudent on a renovation, but you may need more on a heritage home.