Refurbishment options for property investors

Refurbishment options for property investors

Property investment has seen some major changes over the past few years, with additional challenges for landlords in the buy-to-let market.

However, although the landscape has changed, mainly due to changes to stamp duty and tax relief, there remain opportunities for investors to maximise their income, with property refurbishment one exciting option to unlock additional value in their chosen property.

According to a survey carried out by one insurance company, the five renovations which add the greatest value include garages, lofts, energy saving measures, single storey extensions, and outside décor.

For example, building a garage on a property valued at an average price of £207,308 will cost about £15,450, according to the insurance company’s calculations. However, the investment may lead to a 20% - or £41,462 increase - in the price of the home, meaning an estimated profit of £26,012.

Similarly, an investment of £10,720 in energy saving measures on the same house could mean an estimated 14% - or £29,023 - increase in its value, providing an estimated profit of £18,303, according to the research.

Even smaller refurbishment projects such as new flooring, improving the garden or painting and decorating the property could add thousands of pounds to the value of the house.

Landlords are required to meet certain standards set out by the government for private rented accommodation, so when purchasing a property in need of some repair, items like new boilers or rewiring could be essential. Other renovations such as new kitchens and bathrooms, even if not essential, may help to attract prospective tenants and ensure the best possible yield.

It’s up to lenders like Together to adapt and offer dedicated products to support the needs of these kinds of investors. To this end, we’ve launched a new short-term loan to support people carrying out residential refurbishments, which allows investors and portfolio landlords to release equity once they have completed renovations on a property before selling it or renting it out.

This is one example of our common sense approach to lending and we are committed to creating more innovative products in the future that deliver exactly what our borrowers’ need.

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Latest Comments

Scott Garnet
Scott Garnet 06 Nov 2017

If you have a patio or a porch it is important to make sure that any connecting doors are secured. Good advice for sliding glass doors is replacing the panels with storm resistant glass and getting heavier...

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richardrawlings 01 Nov 2017

What has not been mentioned here is the effect of not only higher interest payments, but also that these payments are less likely to be offsettable as a business cost due to the scaling back of mortgage...

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Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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sean benton
sean benton 01 Sep 2017

Identity theft is a thread for any profession. So,people should stay alarmed. I once take help from a letting agent and came to know that letting agents are taking every precaution to prevent fraudulent...

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Mark N.
Mark N. 30 Aug 2017

We have seen a surge in instructions over August and that should continue into September too.

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Chris 30 Aug 2017

Unfortunately, all the legislation bears its force on Landlords and ignores, naively, the effect of Rogue Tenants on the ability of landlords to keep houses in repair and offer properties for rent at reasonable...

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