Taking out a homeowner loan
to make home improvements could boost a property’s value significantly, according to statistics.
However, before taking out a loan
for property improvements, homeowners should make sure they choose the changes that would increase their homes’ value the most, according to a UK lender.
After quizzing estate agents, GE Money Home Lending found that loft conversions and room extensions are generally the most valuable renovations.
Making these changes could add up to £42,000 to a home’s value, according to the estate agents.
In comparison, outdoor decking and a new driveway are the least profitable renovations.
Commenting on the findings, Giacomo Gigantiello of the loans provider said: “It is important that consumers appreciate and establish DIY and renovation tasks which will add the most equity to their particular home.”
Alliance & Leicester also found that loft conversions could add value to homes and that it could be cheaper to find a loan for such home improvements instead of moving to a larger home.
The bank’s senior personal loans manager Richard Al-Dabbagh said homeowners could be tempted to take further advances on their mortgage when undertaking big renovations.
However, it was suggested homeowners could find a “cheaper alternative” with a better rate if they compare loans in the market.
© Adfero Ltd