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Month: August 2023

How you can boost your property value by £48k

Posted on by Sophie Winter

Do you find yourself using your garage as a storage space for clutter, or does it stay empty because the idea of constantly moving your car in and out seems too bothersome?

A study conducted by Admiral Money has unveiled that up to 51% of individuals in the UK seldom or never utilise their garage for parking their cars. Instead, they tend to fill it with tools or furniture that remains unused. In fact, the total of unused garages is so substantial that Admiral’s calculations suggest that almost 600,000 homes could potentially be in the space wasted by them!

However, by dedicating some effort and resources, this overlooked space in your home has the potential to significantly enhance the value of your property. Admiral’s research also demonstrates that a simple garage conversion could incur a minimal expense, starting at £6,000 for a single garage, while a comprehensive conversion might range from £10,000 to £20,000. But the value it could add your home is much more – estimated at around £48,000!

Why are homeowners converting their garages?

Conducted using data from the ONS, this study comes during a period when individuals aspiring to live in larger homes might encounter obstacles due to escalating mortgage rates and higher housing costs. However, as stated by Admiral, opting for a garage conversion provides an alternative avenue. This allows homeowners to tailor their residences to align with their lifestyles in the aftermath of the pandemic.

The study uncovered that a majority of homeowners who undertook garage conversions did so with the aim of expanding their living area (67%). The most favored choices were utility rooms and home offices. However, 24% chose to repurpose their space for recreational purposes, opting for features such as bars, home cinemas, and gym facilities.

Converting your garage

In addition to the potential for enhancing property value, another significant advantage of transforming your garage into a room is the low likelihood of requiring planning permission and it often avoids the need for extensive structural modifications. This can make it a highly cost-effective method to expand your living space and overall square footage.

While the initial conversion expense might seem discouraging, homeowners have the option to increase the mortgage on their property for garage renovation. Recent statistics suggest that this approach could potentially increase the average property value across the UK by over £48,000 and even up to £150,000 in certain London postal areas.

Factors to consider during a garage conversion

Prior to moving forward, it’s crucial to thoroughly consider whether you, or a potential future property buyer, might require the use of your garage. This assessment is particularly relevant if you reside in an area where parking is challenging or if your driveway has space for only one car.

If you’re seeking ingenious ways to utilize the space, enlisting the help of an architect can be beneficial. The fees for professional architects and engineers can commence at £1,500 and extend up to £3,000.

According to Martin Hitchcock, an architect, the essence of a successful garage conversion lies in assessing your current home usage and contemplating potential improvements.

We’d suggested thinking about these questions prior to starting any plans:

  • Could extending an existing room into the garage prove advantageous?
  • Is it feasible to convert a portion of the garage while retaining the rest for storage purposes?
  • Do you possess alternative parking options if you proceed with the garage conversion?
  • How would your car’s placement outside a window in the converted garage impact the natural light in your new space?

Have you recently converted your garage and want to know what your property is worth?

Why not contact our expert team today to discuss your property and its new value. We can provide you with a fully detailed sales report and local comparison to show you during the valuation.

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How much is my garden land worth?

Posted on by Sophie Winter

While there are various methods available for determining the value of your home, if you have received an offer to sell a portion of your garden or are considering purchasing land from your neighbour, you may be curious about how to accurately assess its worth. In this article, we will explore the factors that come into play when dealing with the acquisition of garden land. Plus we will explain two approaches to calculating its price. Additionally, we will examine the potential implications for homeowners, including their mortgages, particularly if the plot is adjacent to their property.

Land values by area

Gov.uk, provide average land values based on local authority areas, but it is essential to note that this data is intended solely for survey purposes and should not be relied upon for commercial transactions’ valuations. The figures are primarily used for assessing public policy related to agricultural and industrial land usage across different local authorities in England. The latest available data, as of writing, is from 2019, published in August 2020.

Moreover, the Gov.uk analysis emphasizes that land value is highly sensitive to specific variations in each plot. Therefore, whether you are selling or buying a plot of land, its true value depends on several critical factors:

  1. Location
  2. Land condition
  3. Size of the existing garden (if any)
  4. Value of adjacent properties
  5. Potential for car parking on the land
  6. Scarcity of land available for sale in the area
  7. Other local competition factors.

How are mortgages affected by buying or selling garden land?

For owner-occupiers who have a mortgage and wish to sell a portion of their property’s surrounding garden land, obtaining consent from their mortgage lender is the first step, and they might need to consider remortgaging. Releasing and discharging the plot of land may require a partial repayment of the initial amount borrowed (capital sum) to the bank, building society, or mortgage lender. Similarly, if you plan to expand the size of your property’s land by purchasing adjacent land, it’s crucial to inform your mortgage provider. Especially if you intend to include the purchase price in your existing mortgage.

Ways to value garden land

When it comes to valuing garden land, there are generally two main approaches. The first method is the comparable method. This involves examining sales of similar plots and adjusting the figure based on factors like scarcity, plot size, and location.

The second approach is the marriage value method. This is where the value of the land is calculated by assessing how much it would enhance the value of any property it merges with. Typically, a fraction of this sum, usually half, is considered as the land’s value. Additionally, it may be prudent to take into account any corresponding reduction in the value of the seller’s property.

Although these valuation concepts seem straightforward, in practice, they can be more complex. One of the challenges lies in finding enough reliable evidence of land sales. While data on house sales is well-reported, land sale agreements are often more private. They tend to involve negotiations between two individuals and without public advertising. As a result, the agreed-upon sums between buyers and sellers may be more influenced by individual affordability rather than broader market factors.

Additional factors

In addition to considering the previously mentioned points when valuing a plot of garden land, it is essential to assess its appeal to potential buyers. For instance, plots surrounded by neighbouring properties might not be as valuable as similarly sized land that benefits from a separate, unobstructed access route.

Furthermore, the circumstances and timelines of the sale could also influence the agreed-upon amount. Executors selling an asset may have different priorities compared to neighbouring landowners who were not actively looking to sell until approached. Thus, their willingness to negotiate could vary.

The potential for planning issues and changes in the intended land use, can also impact the selling price. Notably, garden land typically commands a higher value compared to some farmland, which might be subject to VAT.

As any surveyor or architect would confirm, land with existing planning permission generally fetches higher prices compared to terrain without such pre-approval.

Restrictive covenants on land

To facilitate the transfer of ownership, engaging a solicitor or conveyancer is necessary. During the preparation of the appropriate contract for buying or selling garden land, it is crucial to take into account any restrictive covenants that may apply. These covenants often aim to prevent noise nuisance from the plot or any inconvenience caused by potential future construction work.

In some instances, additional clauses might come into play. For example, overage provisions could entitle the land seller to receive a payment if the buyer secures planning permission for the land after the transfer, within a predetermined period.

Furthermore, depending on the location, the seller might wish to retain mineral and subsoil rights or include clauses concerning sporting rights and even airspace. These factors should be addressed and outlined in the contract to ensure a clear and comprehensive agreement.

In summary, there are numerous factors that influence garden land prices, making the valuation process complex and diverse. To ensure arriving at a fair and accurate price, seeking guidance from an experienced professional is often beneficial. Why not contact our expert team today to discuss this opportunity and how we can help you.

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