Can you add value without adding sq ft?

[Renocrazy]

As title says... can you add value without adding square ft?

Currently planning our renovation with (what i thought was) a decent budget. House needs some opening up internally. Upstairs reconfigured plus externally (render & new windows etc). We hoped to extend downstairs too but everything is adding up and extending the house is proving costly.

I'm just baffled that we're potentially spending a lot (400k minimum) to not add anything. But the finish and layout and look of house will be much better.

Please reassure me or advise otherwise. My head is in a spin with costs.

Yes light and layout are really important. However if you are spending that sort of money can you check with a professional who you are not already working with and who has no vested interest.

Yes! We added a small (1.5 m deep?) extension at back of our 30s semi, but I think the main transformation was knocking through kitchen and dining room- and generally renovating the house. It depends on the state of your house (and the cost) before work I suppose though? Our house was comparatively cheap for the area and the bulk of our work was renovating the existing square footage, which we have got the money back for.

We did use an architect! And good craftspeople.

It really depends on what £400k is as a percentage of the current value and the state it was in beforehand. You can absolutely add value without extending, especially if you go for high end fixtures and finish.
However £400k is a lot and there is usually a ceiling value for a property in an area no matter how fabulous it is. Have you had a look at recently sold prices for similar size properties in your area that have been updated?
Also worth considering that it’s your home and if you can afford it and will love living in it for a long time, you don’t need to make a profit on it.

I spent £120k on my house without adding space in the last two years. It's worth about £50-100k more than my purchase price plus renovation costs. And it is a much nicer house to live in. I don't plan on selling it any time soon, but I was careful not to spend more than the highest sale price for the same sized house in the area.

£400k seems a lot but hopefully the quality of finish is high. What is the average value of similar houses nearby?

For £100k on a 4 bed house, I've had a new roof, replacement extension, full rewire, replacement exterior doors & windows, and a new kitchen, over the last 8 years. I still need to replace the bathroom

It's a balance to get the most enjoyment and the best return.

£400k seems horrific to me, but depends on what house is worth. You can add value but essentially will only be xx bedrooms.

I think some reconfigurations can really be worth it- for example combining a small kitchen and a formal dining room into one bigger space, because it’s just what people want. And if they don’t happen to be next to each other to start with that can end up being really expensive. Or if there are 3 big bedrooms and one box room it can pay to make it 2 large and 2 smaller but serviceable as again, broader appeal.

I think renovations (even extensions) rarely add the value back instantly, which means you lose some money. But if your enjoyment of your home is increased, and you have no plans to move, who cares? I would say some internal changes can add value - like a downstairs toilet and utility room (if they weren’t there before), and a boot room if you have space. But different people have different ideas about internal living. Two houses I have seen have changed a 6 bedroom house into a four bedroom house by adding an en-suite and dressing room. For neither would I have wanted it done how they did it, but one I could have lived with and the other I wouldn’t pay for because I would have to rectify their floor plan. There was another house we saw where they had utterly ruined the layout with their extension (and the way they had done the extension. They were asking a top price for that house and it has stayed on the market for over 6 months now I think. What I have learnt is do what you want to love your house but don’t assume you will get your money back.

Yes you absolutely can (largely remodelling, making things like a nice big kitchen diner or an extra bedroom) but I am not sure you can add 400k! That sounds absolutely extortionate. Are you doing a loft or something? If you want to add what you’re doing and the values of the house that might help but best bet is to ask a few well thought of local estate agents. I’d do that asap.

Unless great houses of same sqft are selling for £400k then no, it's a sunk cost.

If you're not planning on selling for 20+ years, it may be a wise investment.

None of us know as we don't know how much cheaper your house is compared to comparables.

If your spending 400k on making it nice but not extending I'm not sure you will make that all back. Guess it depends what you paid

£400K? 😳
At that, I'd be wondering if the 'street ceiling price' would kipper it's increase in value, especially if it isn't going to be any bigger.