Considering extension. Impact on value?

[SingingMySong]

We are debating whether to just replace the kitchen or whether to put on a small extension. The aim is to do it for us, not to add value, but we are looking to move in about 5 years so we can't afford to write off the entire cost, we need it to at least be offset by increased value. Also we have the option of a one or two floor extension, and impact on value might make a difference to which is more economic.

So how do we judge the likely impact? Would estate agents do it for free, if I'm honest that I'm not ready to sell yet? DH reckons a less scrupulous one will always say it adds loads of value because they'll get more commission on a bigger house. Or do architects / other people who draw up plans estimate the value more accurately? Do I need to pay architects etc to come round or will they do an initial visit for free?

*by "at least offset", I mean partly offset. I'm not trying to make a profit.

We spent £32,000 on a single storey kitchen extension. Really good quality- limestone floors, solid wood worktops, Belfast sink etc etc. It wasn't a huge extension 3mx 5m but we sold the house this year for £85,000 more than we paid for the property in 2015. I think the extension helped!

We built a two storey extension a couple of years ago. We also keep thinking of moving so have had three estate agents up at various times since then. Immediately after the extension it seemed worth 20k more than we had spent on extension (compared with what it would have sold for as it was) Six months ago from the valuation we would have roughly broken even from what we had spent but not added any value. Most recent valuation only 40k more than what a house identical to ours pre extension sold for so if we sold now we would have lost 20k (extension cost 60k). So possibly depends what markets are doing at the time. I think the gap between 3 and 4 beds round here has shrunk and the estate agent who came round recently very much viewed it as an extended 3 bed rather than a 4 bed in its own right. Not sure that will all help you decide having written all of that but I do think it depends on what the market is doing at any given time. I still have no regrets as we are loving living in the bigger space

Do it if you want a better kitchen for you. Price increases can be difficult to achieve in cheaper areas because of the cost of building. I think a well planned and executed extension is great and a new kitchen even better. It should add value as long as it is good quality and really adds to the house by being a good design and layout. Whether you make money is open to question but you may sell quicker if your house is greatly improved by the extension.

Has no-one else in the neighbourhood done something similar so you can compare before and after prices.?

I agree with PPs - house prices are dependent on markets, and these can go up or down independently. You can never guarantee that you can recoup what you spend on a house within a given short- to medium-term timeframe, though over a longer timeframe you are unlikely to lose your money. However, the same is true of buying a house in the first place. Purchase one at the top of a market and you may end up in negative equity.

However, all this amounts to saying is that any property decision comes with risk. What you can say is that a house with a nicely done extension is more likely to sell for a greater price than one without.

Talk to estate agents, but be prepared to be told that you're better off moving - because if you don't move, they don't get commission! Do not trust an architect as far as you can throw them with ANYTHING to do with costs.

At the end of the day, there are no hard and fast rules and you have to decide for yourselves. There are things that you can quantify in this decision, but there are a lot of uncertainties about those quantifications into the future. However, there are also qualitative benefits: how you feel living in a space. Sometimes these outweigh the quantitative.

Just have a look at sold prices on Rightmove. They will show you the houses that have sold in the area and how much for. The floorplans and photos are there too. Also have a look at what's is currently listed and for how much. See what people have paid for a house similar to yours but extended and you'll know the likely value. Estate agents can be a real mixture (some smart and really know their stuff and others too dim to be helpful).

A lot depends on the quality of your extension and your taste. Buyers will be desperate for a well laid-out, light filled space. If you just bodge something together without thinking about the placement of furniture, light or the relationship with the garden, then it might not add to the value of the house at all.

Thank you for your advice and stories.

It's a pleasant area with fantastic schools and mainly detached houses. Extensions are extremely common, but I find it really difficult to compare our house with others on Rightmove. We'd be extending from a kitchen we can just get a table in (2.8 x 4.4m, awkwardly placed doors) to a longer but still narrow one (2.8 x 6.8m), and possibly adding a 5th bedroom upstairs. I think there is a danger we'd just be buying a bit more elbow room. Or alternatively, it could push it up from "entry level 4 bed with playroom" bracket to the next rung. I have no idea.

If we were extending from 3 to 4 bedrooms or adding an extra reception room, it would be more clear cut.

How much garden would be taken by the extension?

auntie none really, it's squaring off an odd corner of the house which is just a dead bit of extra patio. Not sure we are brave enough to extend into the garden proper! It's not tiny, but is smallish for a 4 bed detached.

I would say don't do it :( The room you create will still be awkward and narrow rooms never look great. People don't like galley kitchens in general. Because of the small scale it will cost way more than it's worth imo. Could you post a floor plan? Is there any way of maximising your current ground floor layout to improve the kitchen? Sounds like if your garden is small that would be the best way to maximise value.

Thanks Mooney. It's late now but I might have a bash at a floor plan tomorrow. The house I think is unusually unamenable to reworking, but maybe that's just my lack of imagination.

I love reworking floor plans too ;)

Having recently done an extension to my house I think in addition to speaking to estate agents it is worth meeting an architect for an initial consultation on what you would like to do. From my experience it was very helpful to get a good architect's advice on the feasibility of what you want to do, and get a rough idea on how much it'll cost to get what you want. We were initially speaking to a builder for a simple extension which we thought will be permitted development, but purely by chance we met an architect before we started our work and realised that what we were planning to do will not comply with planning regulations as it was 'extending an extension'. He also gave us good ideas on how we could achieve more to the new space by tweaking a few things that didn't cost us more. The initial consultation with the architect was free as well, and he was also helpful in providing our builder with a more structured schedules and drawings so that the builders could cost our job more accurately, which save us from many potential conflicts down the line! It is up to you to decide if you want an architect, but I don't think it is a bad idea to get a free initial consultation to see what an architect can offer, and perhaps you'll have a better idea on whether the work is worth doing at all!

Happy to share more details :)

Speak to a builder and work out some rough costs.

A lot of the money on an extension goes on hiring kit like diggers, concrete pumps etc. You can often do a medium-sized extension for not much more than a small one.

I agree that it sounds as though your kitchen problem would benefit from the trained eye of an architect. There are almost certainly solutions that you won't have considered that they will see instantly.

I am an architect -
I always say if you know exactly what you want, it's simple and you have no other complications (listed, conservation area, party wall issues) then you probably don't need me, a draftsman / competent contractor will probably suffice.
Where I earn my money is visualising something a bit different - making that awkward space work, coming up with options you hadn't thought of, dealing with complicated details or complicated paperwork (listed building and conservation area consent are a lot of paperwork)
I can't give you fixed ideas with regards to cost as the market is always changing and often it comes down to specifics such as choices and timings. I give clients a very rough figure with a huge caveat and always get contractors to quote or if a more complicated project get a QS. Materials costs are bringing quotes in on the high side at the moment.
I always give a initial free meeting to get a feel for a project and a client. I don't take on projects if I don't think I'm on the same page as a client.
I always agree fees and what is included up front and sign a fee agreement, which also details my complaints process and insurance etc - it's important that you do this as I have just been approached to sort out a project where the client was taken for a ride by their 'architectural consultants' (not real architects) who just kept asking for more fees and not providing usable information - they didn't have a contract.

I recently viewed two identical houses - literally next door. The extended one went for literally 5k more. (It was a long, narrow extended kitchen to a terrace)

The differences were:

Property 1 - £250k (asking price 240)

• tiny kitchen - could reach all workspaces from one spot
• beautifully decorated throughout
• lovely bathroom with separate shower
• en suite toilet in loft room

Property 2 - £255 (asking price 250)

• extended, light airy kitchen
• mediocre decoration (but blank slate)
• very cheap bathroom with no separate shower - needed changing
• ridiculous en suite arrangements in loft (toilet with no door facing bed, shower under sloping roof you had to climb into)

Didn't go for either, but I couldn't have gone for the first one. The kitchen was just far too small. The second needed work, but much simpler and less disruptive.