Loft conversions 'are a sound investment for homeowners'
Published On 4 April 2007
Using homeowner loans to finance a loft conversion could be a very sound investment, a leading bank has said.According to Alliance & Leicester Personal Loans, a loft conversion adds around £100,000 to the value of a home.
On average, a person would have to take out a homeowner loan worth £23,000 to finance the conversion and increase the value of their property.
However, the cost of the loft extension and the extra value it brings to a property varied considerable depending on where the house is located.
In London, for example, a typical dormer loft conversion to a three-bedroom home would require the owner to spend around £25,000, but would increase the property's value by up to £146,000.
In the north-west of the UK, the conversion would only require a homeowner loan of £22,080, but would still increase the selling price of the domicile by £97,888.
"Carrying out home improvements instead of moving can have amazing results, potentially increasing the value of your existing property and also saving a great deal of money as well," said Richard Al-Dabbagh, Alliance & Leicester's senior personal loans manager.
New research from Churchill also suggests that people should make sure they have adequate home insurance before carrying out any work. Figures show that people cause £2.6 billion of damage doing DIY every year.
