Last week, a landlord from Hampstead emailed me to ask,
after reading the Hampstead Property Blog, if he should extend his terraced
house making an extra bedroom in the loft. He had a builder friend who owed him
a favour, and thought a good way would be get an ‘inexpensive’ extension.
Having more useable space is generally thought to be
consistent with better quality accommodation and homeowners and tenants are
prepared to pay for it. If you added a bedroom to a two bed terraced to
make a three bed terraced, it will add 10% to the value of the property. Turn a three bed terraced into a four bed terraced
and 9% will be added to the value. Looking at semi detached properties,
and turn a two into a three bed and 12% will be added to the value, whilst
making a three bed semi into four bed will add 9% in value.
See the graph below to see the variance in values of terraced v semi detached houses ( Source ~ Office of National Statistics)
Talking to a number of trades people in the NW3 area, most
are booked up into the New Year. Also, no matter how good a friend he was, I
don’t think a £50,000/£800,00 extension was ever on the cards, maybe the
builder was just thinking of a bit of re-pointing work on the chimney!
Well, that got me thinking about how bedrooms affected
rental prices and rent-ability as well.
Interestingly below, you will see that whilst bedrooms do have an effect
on the rent that can be achieved and the rent-ability of the property – the
difference does not warrant the expense, hassle and trouble of extending if you
are time poor and looking to add value quickly.
- 17.6% of the one bed properties on the market to rent in Hampstead have a tenant with an average rent of £1,710 per month
- 10.8% of the two bed properties on the market to rent in Hampstead have a tenant with an average rent of £2,831 per month
- 13.9% of the three bed properties on the market to rent in Hampstead have a tenant with an average rent of £4,459 per month
- 10.8% of the four bed properties on the market to rent in Hampstead have a tenant with an average rent of £8,904 per month
Now, if you want to increase the value of your property, be
you a Hampstead landlord or homeowner, there are things that cost a lot less
than building extra bedrooms. This option is best explored if the property is
vacant due to all the disruptions it will otherwise cause.
The cost/benefit
analysis is something that can only be realised over the long term of 3 years
or more, always look at the neighbouring properties in your street to see if
it’s been done by other homeowners. There are two key factors that determine
the value of any property, they are location and condition. Spruce up the
exterior, emulsion all the rooms, install new carpets and curtains. For homeowners,
a matter of two to three thousand pounds can add tens of thousands, whilst for landlords;
these things can add an extra 10-15% to the rent that you can achieve.
How Much Is Your Property Worth? Click Here To Find Out For FREE
If you are looking for an agent with experience that can help you find the right tenant for your property, then contact me to find out how we can get the best out of your investment property. Email me on chris@ashmoreresidential.com or give me a call on 020 7435 0420. Pop in for a chat – we are based at Ashmore Residential, Suite 7, 25-27 Heath Street, London, NW3 6TR. There is plenty of parking and the kettle is always on.
If you are looking for an agent with experience that can help you find the right tenant for your property, then contact me to find out how we can get the best out of your investment property. Email me on chris@ashmoreresidential.com or give me a call on 020 7435 0420. Pop in for a chat – we are based at Ashmore Residential, Suite 7, 25-27 Heath Street, London, NW3 6TR. There is plenty of parking and the kettle is always on.
Don't forget to visit the links below to view back dated deals and Hampstead Property News.
Awesome blog! if you want to extend or renovate your house. Dr Andrew Unterweger can help you because its specialties in real estate.
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