Does extending pay back?

[Extendornot]

We are living in a house that's too small for our family but great location for schools and work. I'd like to move when we can. But for now, an extension would work for us.

However, given we are likely to move within 5 years, I'd hope that the extension might be an investment as well as a nicer place to live.

We can extend in to the attic, redo an old conservatory, go to the side (downstairs extension, or potentially 2 storey) or convert the garage in the garden to something nice.

What pays off? What have you found from your experiences? Did your extension pay back?
.....Or if you want to invest in your property for a better sale price are you better to do painting, new kitchen etc.

The year of the extension might make a difference as I believe cost of labour has increased. So please do share a rough timescale, it's still interesting eitherway

Probably not to be honest... extensions are for practicality not 'money'.

I say that because where I live nearly every house has been extended but theres basically 4 tiers:

1. unextended starter homes - these are 1/2 bed and 1 upstairs bath and 1 reception room + kitchen terraces. These sell for £30-55k usually. (usually in 'rougher' areas where people haven't bothered putting money into the houses).

2. single story extensions - these are usually 3 bed upstairs, then 2 reception rooms, kitchen and bathroom down stairs. These sell for £50-100k usually depending on area.

3. double story extensions - these are usually 3 bed and bathroom upstairs, then 2 reception, kitchen and another bathroom downstairs. These usually sell for £75-110k.

4. whole hog, double extension + attic conversion - these are usually 4-5 bed + 2 reception rooms and kitchen, at least 1 bathroom and then either a second bathroom or office etc... These usually ask for about £150k but do NOT sell well and usually and sit on the market for ages.

House we are buying is a 4 (+ conservatory too) and we are paying £90k... it does need some work but even with all the work we will have paid less than £115k.

When you consider the cost to add an extension (average start price £45k) or attic conversion (average start price £15k) its rarely adding that much extra to the value.

You would assume if the value added with each addition was equal to money spent then to buy a double extension you should expect to spend minimum of £135k on my street.

However the 2 houses on my street that just sold sat on the market for 6+ months lowering their price from £110 to £105 to £100 then sold for between £95-99k. One was a single extention the other a double and they sold for about £2k difference in the end. There isn't a huge jump in price if at all between more extension rooms and prices.

it's a good question you've asked. i'm a buyer right now and i've seen some ugly extensions, poor design layout, and poorly made loft conversions. they look like they were done as cheaply as possible too and it's clear some of these houses have had "owners" (mortgagers, really) hoping to add value to it. For me, I've told EA's I'm going to have to rip it out and re-do it or remove completely... that would cost me money, so if the seller won't agree, it's a no from me. I have also seen some really great extensions too, but they've usually engulfed the entire garden and there's very little garden left. I wish people wouldn't do extensions if they plan on moving, honestly, it's such a headache and i've said no to many houses just even looking on rightmove. it really depends on what you have done, and if it suits another person's lifestyle, but don't expect it to appeal to everyone, it might even repulse people.

Slightly different position as it was 7yrs ago - cost about £100k for double storey extension (added a bedroom & small ensuite upstairs, usual extension for 3 bed 1930s semi downstairs). Added £200k+ to the value.

The driver was to have a house that worked for us rather than investment, and the jump to a 4 bed house locally + cost of selling / buying if we'd have moved would have meant an extra £250k or so on the mortgage which we couldnt have afforded.

our extension works for us...gives us a small dining seating area and decent sized kitchen, utility and downstairs loo the house was lacking.

But I'm not convinced it's going to suit a family.....

I can imagine someone coming in with raised eyebrows and wondering how to make it work for them.....

I would say more so than other improvements.

The thing is when you add extensions, they are unlikely to be taste specific. Whereas everyone has a different idea of style that they want in terms of kitchen, bathroom etc, so a lot of people when moving in will re do kitchens when they move in because they don't like them, they are much less likely to remove an extenision (they will of course redecorate it).

But there are many factors to take into account liek for example when you add space, do you take away other space - for example garden space or garage space and whether you improve the look/feel of the house, for example, no point adding a lot of space that for various reasons is difficult to use. You can also add extensions that really affect the outside view of the house - some extensions (particularly flat roofs) frankly look like an eyesore and although some people may be prepared to live in a house like that because of the increase in space, a lot will be put off by the appearance.

Extensions may be increasing in costs, but for the benefit against a house move you have to look at more. For example, if you move house, what is the cost in terms of stamp duty, removals, redoing the new house the way you want it (walls, carpet, kitchens, bathrooms etc) ? When you add in the cost of these, plus the fact that the extension adds value to the house you are in, the cost is maybe not so extreme.