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How much does a loft conversion cost?
The expense of moving house means that many people who are looking for extra space find it pays to learn how much a loft conversion costs
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There are many factors to weigh up when calculating loft conversion costs. The first is whether what you will pay for an attic conversion to your existing home exceeds the stamp duty tax on buying a larger property. And if you proceed, other considerations include what type you want, how long it may take to build, whether you will need planning permission and does a loft extension add value?
So how much does a loft conversion cost? Read on for the answer to that and all the other important questions you need to answer.
How much does a loft conversion cost?
Depending on the structural requirements and the floor area and access, loft conversions typically cost from around £20,000 to £60,000. Converting your loft is often one of the easiest and cheapest ways to boost the square footage of your home. Costs will be higher if you are making significant changes to the size of the roof space and are adding a bathroom.
- Do you know how you would fund home renovations? Discover if equity release could help you unlock tax-free cash from your home - Try the free calculator now.
How much value does a loft conversion add?
Research has suggested that adding a loft conversion that includes a bedroom and en-suite bathroom could add as much as 20 per cent to the value of your home. However, this estimate can be affected by the location of your home and whether its value is already at the ceiling price for your area.
How long does a loft conversion take?
How long it takes to convert your loft will depend on various factors. First, you will need to find a contractor with availability and book time for them to undertake the work. If extra tradespeople such as plumbers and electricians are required, more time may be needed to schedule their work.
The time of year might also come into play. If you are considering a more extensive loft conversion that involves removing any part of a wall or the roof, the weather becomes an important factor. Speaking to a contractor about your conversion plans would be best to get an idea of the timescale.
Do you need planning permission for a loft conversion?
Not all loft conversions will need planning permission but it will be required if you are extending or changing the roof space and it exceeds certain limits and conditions. Check the Government’s planning website for more information on the rules.
Types of loft conversion
The type of loft conversion that you consider could have a significant impact on the cost of the work required.
- Velux loft conversion Perfect if you already have a lot of loft space. You can simply add windows to the roof to introduce some light to your loft or attic space, along with flooring and a staircase.
- Dormer loft conversion This involves converting the loft space to include a flat-roofed extension with a window.
- Hip-to-gable loft conversion With this conversion, you can replace some of the roof’s sloping parts with a gable wall to help maximise space.
- Mansard loft conversion This is characterized by a 72-degree inward sloping back wall. It is a versatile option that works for many property types but may require planning permission.
Make sure to get quotes from a contractor to assess the cost of the work before committing to any spending.
Ways to fund a loft conversion
There are several different ways for homeowners to pay for a loft conversion or loft extension.
- Savings Many people cover costs using their savings, but for those who don’t have a large lump sum available, there are other options.
- Remortgaging If you are an older homeowner, remortgaging is not always straightforward, because many lenders impose maximum age limits. They will also want you to be able to demonstrate that you will have a stable income in retirement so that you will be able to meet monthly mortgage payments when you stop working.
- Equity release Homeowners aged 55 or above, also have the option of using equity release to pay for a loft conversion, which involves unlocking some of their property wealth. According to equity release specialist Responsible Equity Release, more than a fifth of their customers released equity with home improvements in mind.
Unlock property wealth with equity release
Eligible homeowners use equity release products to release billions of pounds each year, according to annual figures released by the Equity Release Council (ERC). In the second quarter of this year, homeowners released on average a lump sum of £129,558, a significant amount that would more than cover the cost of the average loft conversion.
The total amount that could be available for homeowners aged 55 or over to release is primarily determined by the age of the youngest homeowner and the value of the home. You can use the equity release calculator via the link below to get an estimate of how much could be available to you.
David Burrowes, chairman of the ERC, said:
“Equity release provides financial help for consumers in a wide range of circumstances, including some looking to pay off interest-only mortgages and others wanting to make home improvements or adaptations and fund social care needs in the comfort of their own homes.”
How it works
The most popular type of equity release product is a lifetime mortgage. When releasing equity in this way, rather than repaying what you owe monthly, interest rolls up over time and is then repaid, along with the lump sum released, when you die or move into long-term care.
If you did want to make optional payments you would usually be able to do so. If you choose to simply let the interest roll up, however, then you can still have peace of mind thanks to the no-negative-equity guarantee, which ensures that you will never owe more than your home’s value.
Get professional advice
While equity release can be an incredibly useful financial tool, this type of scheme will not be right for everyone. Naturally, by taking equity out of your home today you will reduce the value of your estate and this could affect your entitlement to certain means-tested benefits. Therefore, it is vital to seek professional equity release advice if you are considering taking this route to fund a loft extension or any other home improvements.
An adviser can provide you with a personalised illustration and recommend the most suitable plan for you.
- Try our free equity release calculator now and see how much tax-free cash you can release
Read more:
- A guide to buying a second home
- Can I sell my house if I have equity release?
- Is downsizing your home the right move for you?
By taking money out of your property now, a Lifetime Mortgage may reduce the value of your estate. A Lifetime Mortgage may also affect your entitlement to means-tested benefits, but an adviser can walk you through the impact of this before you decide to proceed.
Equity release is only available to homeowners that own a property within the United Kingdom.
The Telegraph Equity Release Service is provided by Responsible Equity Release. Responsible Equity Release is a trading style of Responsible Life Limited. Responsible Life Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register (https://register.fca.org.uk/) under reference 610205. Only if you choose to proceed and your case completes will Responsible Life Limited charge an advice fee, currently not exceeding £1,690.
The above article was created for Telegraph Financial Solutions, a member of The Telegraph Media Group. For more information on Telegraph Financial Solutions click here.
Information correct at date of publication.