Extending your Chelsea home could add more than £200,000 to its value, according to the latest estimates revealed by the Times.
As London’s most expensive borough, Chelsea is highly sought after. Adding an extension or conversion to a property here may cost around £45,120 but such an investment can increase a property’s value by £212,706, an article in the publication claims.
The figures compare with other areas around the UK, such as Bedfordshire, where an extension adds a modest £5,459 to a property’s value, according to research. The article suggests that the amount added by extending a property depends on when the area reaches a tipping point, at which time the cost is significantly outweighed by the value added, property expert David Fell commented.
The trend in extending is still going strong – planning applications for developments of this kind have risen by 20 per cent over the last few years.
Lucian Cook, director of Savills residential research, said that this figure corresponds to one person extending their home in every five people buying a property. In London, the number accounts for one in every 3.2 housing transactions.
Director at Cheffins estate agency Bruce King commented that loft conversions have risen in number by around ten per cent in 2017 as a result of the increase in stamp duty and rising house prices. The difference between a three and a four-bedroomed house is now around £150,000, he added.
A tool recently unveiled by the Office For National Statistics can show householders just how much an extension could add to their property. The value of one square metre in Chelsea is £19,439; by adding a loft conversion or extension, homeowners stand to make significant gains when selling up in years to come.
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