Loft Conversion Vs Basement Conversion: Which Will Add More Value For London Homes?
Property prices have shot up in London as homeowners are in the hunt for alternative solutions to acquire extra space that can add value to their homes.
Loft and basement conversions are among the viable options to secure that extra space. Though, which one will add more value to your home in London?
There are two things to consider. First, how much will it cost you to convert a basement or a loft to a livable space? Second, how much value will each add to your home? If you answer the two questions accurately, you’re in the valid opinion.
Let’s get started!
The Cost of a Loft Conversion
A decent loft conversion costs around £500-600/m². So consider the amount of space available for conversion as that will be the most direct correlator for the price of the project.
Let’s say you want to convert a 5m by 4m loft space into a habitable space. You’ll require around £10,000-£12,000, right? Though, it depends on what you want your loft conversion to be! different build quality and levels will influence the price of your conversion.
According to Just Loft Conversion, a loft conversion can add up to 21% value to your home. Let’s say your house was worth £300,000 before conversion. It’ll gain a value of £63,000 after a loft conversion. For that reason, your new-fangled home will be worth £363,000.
Though, the initial value of your home plays a role in value gain. Let’s suppose your house was worth £100,000 before conversion. After conversion, the total value of your home will be £121,000. But remember for instance you used £30,000-£40,000 to convert your loft. It is a loss and not particularly worth doing! hence the reason why London has become a hotbed for a loft conversion because adding an extra bedroom or more square feet can significantly improve the value of your home.
But keep in mind – if you add livable space to your home you need to inform your insurer.
The Cost of a Basement Conversion
You’d expect to pay roughly £800- 1,150/m² for a basement conversion in London.
So, suppose your cellar floor space is 5m by 4m. For value-seeking homeowners, you’ll spend at least £20,000. This is much cheaper if you could dig a new basement from scratch which costs not less than £2000/m² in London.
According to Nationwide, a basement conversion adds a value of up to 30% to your home. Basement is typically more easily reachable from living places of your home than a loft. On top of that, a basement conversion presents a variety of options. It can be a cinema room, a games room, or a living area with its own en suite bathroom. Nice!
If the original value of your home is £300,000, after a basement conversion it can potentially appreciate up to £350,000 which is a great deal!
A basement conversion will add more value to your home than a loft conversion in Birmingham. On top of that, there are extra advantages you can earn with a basement conversion than a loft conversion. However, similar terms apply – the initial value of your home plays a part in value gain. Always find the initial value of your house before you make your budget.
If you have the available budget there’s no reason why you can’t do both but do bear in mind that with many “home improvement” project there is a point where there are diminishing returns based on the price of homes in the area. People are willing to pay a premium however there are diminishing returns.