Reinvest in Your Home for Renovation, It Will Payoff in the Long Term
- By Howard Ogollegos
- Published 10/18/2011
- Real Estate
- Unrated
In the current sluggish property market, where house prices are continuing to drop and a there is lack of buyers, it might be an ideal time to get a remortgage deal to finance renovation of your property to add value. Possibly you own a large and unused loft that might be adapted into another bedroom, or maybe there is room for an extension or conservatory, but absence of cash means your dreams have not yet become reality. Remortgaging your property might be the solution.
A Lack of Active Buyers: Maybe you are finding it difficult to locate a prospective buyer for your home. If one of the principal reasons for you deciding to sell was to add more space, perhaps because your family has grown, then renovating with a remortgage could be a viable option for you. Enlarging your family's property could give you the space for a bigger kitchen, a new dining room or an extra bedroom, and eliminate the need for a move in the first place.
Statistics in a reputable UK home magazine suggested recently that in the UK, hundreds of thousands of homeowners opt to undertake a home improvement project each year. That just goes to show that you're not the only one thinking about it.
Each project is different, so timescales and budget vary enormously, and factors affecting price might include the location and condition of the property, or the actual type of property you live in, as well as the specific type of renovation you are hoping to undertake.
A general timeframe for a one storey extension to b
e finished, for example, is about 3 months, with an extra three to five weeks if the extension includes an extra storey.
More and more homeowners are opting to remortgage and fund home improvements since the mortgage and property markets have become so sluggish in recent months, and while interest rates are still very low it is a very popular option indeed.
Remortgaging your home can help to open up some of the finance available that is locked away in your property, which can aid you in renovating your property to make it more comfortable, and to make it yours. Not only that, it is an investment, as the value of your property would also increase if you extending or converted part of your home.
An example might be if you converted the attic into a guest room, which could add significant value to the property, and open it up to new buyers. Extending the property so that there are additional rooms might mean the property is suddenly marketable to larger families rather than couples, for example.
Bear in mind that any significant refurbishment work is likely to be expensive and will turn your home into a building site for a few weeks. "Extension projects can be cheap, non-disruptive or fast, but are rarely all three," Orme adds.
Act Soon or Lose Out: With interest rates remaining at their current record low, now could be the perfect time to find a remortgage deal. There are some great rates available in the market and remortgaging can let you raise the cash you need to undertake a building project on your home. Not only will you add extra space but you could add significant value to your property.
A Lack of Active Buyers: Maybe you are finding it difficult to locate a prospective buyer for your home. If one of the principal reasons for you deciding to sell was to add more space, perhaps because your family has grown, then renovating with a remortgage could be a viable option for you. Enlarging your family's property could give you the space for a bigger kitchen, a new dining room or an extra bedroom, and eliminate the need for a move in the first place.
Statistics in a reputable UK home magazine suggested recently that in the UK, hundreds of thousands of homeowners opt to undertake a home improvement project each year. That just goes to show that you're not the only one thinking about it.
Each project is different, so timescales and budget vary enormously, and factors affecting price might include the location and condition of the property, or the actual type of property you live in, as well as the specific type of renovation you are hoping to undertake.
A general timeframe for a one storey extension to b
More and more homeowners are opting to remortgage and fund home improvements since the mortgage and property markets have become so sluggish in recent months, and while interest rates are still very low it is a very popular option indeed.
Remortgaging your home can help to open up some of the finance available that is locked away in your property, which can aid you in renovating your property to make it more comfortable, and to make it yours. Not only that, it is an investment, as the value of your property would also increase if you extending or converted part of your home.
An example might be if you converted the attic into a guest room, which could add significant value to the property, and open it up to new buyers. Extending the property so that there are additional rooms might mean the property is suddenly marketable to larger families rather than couples, for example.
Bear in mind that any significant refurbishment work is likely to be expensive and will turn your home into a building site for a few weeks. "Extension projects can be cheap, non-disruptive or fast, but are rarely all three," Orme adds.
Act Soon or Lose Out: With interest rates remaining at their current record low, now could be the perfect time to find a remortgage deal. There are some great rates available in the market and remortgaging can let you raise the cash you need to undertake a building project on your home. Not only will you add extra space but you could add significant value to your property.
Howard Ogollegos
Howard O'Gollegos writes for Just Commercial Mortgages.com the UK's No.1 site for the latest commercial mortgage rates and commercial property finance news.
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