04/06/2007
Taking out a homeowner loan to make home improvements could boost a property's value significantly, according to statistics. However, before taking out a loan for property improvements, homeowners should make sure they choose the changes that would increase their homes' value the most, according to a UK lender.
After quizzing estate agents, GE Money Home Lending found that loft conversions and room extensions are generally the most valuable renovations.
Making these changes could add up to £42,000 to a home's value, according to the estate agents. In comparison, outdoor decking and a new driveway are the least profitable renovations. Commenting on the findings, Giacomo Gigantiello of the loans provider said: "It is important that consumers appreciate and establish DIY and renovation tasks which will add the most equity to their particular home." Alliance & Leicester also found that loft conversions could add value to homes and that it could be cheaper to find a loan for such home improvements instead of moving to a larger home.
The bank's senior personal loans manager Richard Al-Dabbagh said homeowners could be tempted to take further advances on their mortgage when undertaking big renovations.
However, it was suggested homeowners could find a "cheaper alternative" with a better rate if they compare loans in the market.
source : MoneyExpert.com
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