How to extend your home to make it worth more

Relaxed regulations on home extensions can make it easier and cheaper to add value to your home. But take care to do it right.

By Graham Norwood

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Suddenly it is much easier to add an extension to your home. The government's unexpected and swift relaxation of planning regulations, announced this autumn, means that some 80% of 'uncomplicated' extensions into lofts or sideways on ground floors will not require planning permission. That will save weeks of waiting and an average of £900 in application fees for each extension. Those projects that still require consent will be large 'intrusive' home improvements - extensions going back over three metres from the original property line, or bigger-than-average loft conversions exceeding 50 cubic metres.

Many have welcomed the reduction in red tape but some property professionals are worried. The Federation of Master Builders says this may be a green light for cowboy builders who, without the supervision of formal planning permission, may erect sub-standard extensions. If owners take a risk on this sort of work, it may make their home difficult or impossible to sell at a later date. The FMB's advice is to hire an architect and skilled builders. With more owners than ever before considering extensions rather than house moves, what are the pros and cons of the three main options?

Going down
A basement extension is excellent for London's older terraced housing, built before 'hard' concrete foundations arrived in the 1960s. For a family house in the suburbs, a basement costs £40,000 to £125,000 and adds £60,000 or more to the value; double those figures in central London. This makes it worthwhile only on larger, high-priced houses. 'Digging out a basement is expensive and complicated,' cautions Jayne Perks of Stacks Property Search, a buying agency. 'You may encounter damp or flooding and you'll certainly need a structural engineer to ensure you don't damage the fabric of the house.'

Moving up
A loft extension costs £30,000 to £85,000 and adds £50,000 to £125,000 providing it creates bedrooms with en-suite bathrooms. 'If the loft area becomes at least one bedroom and perhaps a bathroom, the cost of the conversion should be recouped by the additional value to the house,' suggests a spokesman for estate agent Jackson-Stops & Staff.

Sideways
A sideways extension typically costs £20,000 to £60,000 and adds £35,000 to £100,000 to the value providing it looks good, creates at least one new room and does not compromise the size of the garden. The work is usually straightforward and quick and involves minimal mess, especially if there is a side entrance. Alasdair Dunne of estate agent Strutt & Parker warns that any sideways expansion should not be too big, however.

'Plot size is critical, particularly in a market where buyers are less likely to make compromises,' he says. 'You must be able to offer a suitable garden for your home. When in doubt and requiring extra space, the smart money probably goes on a conservatory.'

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