As a property developer or investor in the UK, increasing your property’s value is a key goal, especially if you’re looking to sell, refinance, or rent out for a higher yield. But not all refurbishments provide the same return on investment (ROI).
In this guide, we’ll walk you through the best cost-efficient refurbishments that can increase your property’s value. We’ll include descriptions, estimated costs, potential value increases, and common pitfalls to avoid. Plus, we’ll explain how these upgrades can be funded with bridging finance to help you achieve your goals faster.
1. Repainting and Decorating
Description:
A fresh coat of paint is one of the simplest and most affordable ways to rejuvenate a property. Neutral tones such as white, beige, or light grey appeal to a broad audience, making spaces appear cleaner and brighter.
Estimated Cost:
- Average UK cost: £1,000–£2,500 for a three-bedroom house.
Potential Value Increase:
- Adds up to 5% to property value.
Pitfalls to Avoid:
- Using bold or overly personal colour schemes that might alienate buyers. Stick to neutral, market-friendly colours.
2. Rewiring the House
Description:
Modernising the electrical wiring in an older property is essential for safety, compliance, and appeal to buyers. A rewired home ensures that the electrical system meets current standards and is capable of handling modern energy demands.
Estimated Cost:
- £4,000–£6,500 for a three-bedroom house.
Potential Value Increase:
- Adds up to 5–7% to property value, particularly in older properties with outdated wiring.
Pitfalls to Avoid:
- Not accounting for disruption—rewiring often requires walls and floors to be opened, which can lead to additional costs for repairs or redecoration. Plan for these secondary expenses.
3. Replastering the House
Description:
Smooth, freshly plastered walls provide a clean and modern appearance, making a property more appealing to buyers. Replastering is especially important if walls are cracked, uneven, or damaged.
Estimated Cost:
- £2,500–£5,500 for a three-bedroom house, depending on the extent of the work.
Potential Value Increase:
- Adds up to 5% to property value by improving the overall aesthetics and structural integrity.
Pitfalls to Avoid:
- Not addressing underlying damp or structural issues before plastering, which can cause the new plaster to fail. Always resolve any hidden problems first.
4. Kitchen Updates
Description:
The kitchen is often the heart of a home and a key selling point. Updating cupboard doors, worktops, and fittings can modernise the space without the expense of a full remodel.
Estimated Cost:
- Minor updates: £3,000–£5,000.
- Full refurbishment: £10,000–£25,000.
Potential Value Increase:
- Adds 5–10% to property value, depending on the quality of the update.
Pitfalls to Avoid:
- Overspending on high-end appliances in modest properties. Match the upgrade level to the property type and location.
5. Bathroom Improvements
Description:
A modern, clean bathroom can greatly enhance a property’s appeal. Replacing fixtures, adding a power shower, and updating tiles are effective changes.
Estimated Cost:
- £2,500–£7,000 for a full refurbishment.
Potential Value Increase:
- Adds 3–5% to property value.
Pitfalls to Avoid:
- Poor-quality fittings or rushed installations can cause leaks and long-term issues. Hire professionals for plumbing work.
How to Fund Refurbishments Using Bridging Finance
If you lack the upfront capital to carry out these refurbishments, bridging loans can be a practical solution. These short-term loans allow you to unlock equity in your existing property or secure quick financing for upgrades.
Benefits of Using Bridging Finance:
- Fast Access to Funds: Receive financing in days rather than weeks.
- High Loan Amounts: Borrow against your property’s equity.
- Short-Term Flexibility: Loans typically last 3–18 months, ideal for refurbishments.
- Customisable Solutions: Tailored to fit your refurbishment goals.
Steps to Secure a Bridging Loan:
- Work with a reputable broker to assess your needs.
- Provide details of your property and equity.
- Outline your refurbishment plan and repayment strategy (e.g., sale or refinancing).
Conclusion
Carrying out cost-efficient refurbishments is one of the smartest ways to increase your property’s value. Whether it’s rewiring, replastering, a kitchen update, or a loft conversion, choosing the right upgrades can yield excellent returns.
To make these improvements without financial strain, consider funding them with a bridging loan. Both first charge or second charge bridging loans can be utilised to provide the funding. With the right guidance, you can transform your property and maximise its value, positioning yourself for greater success in the competitive UK property market.
For more information contact us for a no obligation chat.
https://www.sunrisecommercial.co.uk/
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