As an ex estate agent, ex mortgage advisor and current property investor & surveyor I’m more qualified than most to answer the question “does a garage conversion add value to my home? And in most cases, it is a resounding yes. If you undertake a high-quality conversion that:
- Adds living space.
- Compliments the design of the home.
- Complies with the planning requirements and building regulations.
then yes you should expect an uplift in your property’s valuation. In most cases the increase is more than the cost of the building work meaning you profit from converting your garage.
How much does a garage conversion increase the value by?
While some articles online suggest between 10-20%, the answer is not as straightforward as simply taking the current value of your home and adding a percentage. A more accurate way is to look at the additional living space you are adding as a percentage of the existing space and value. Smaller properties that add a large percentage of new living space will see the biggest percentage increase in values.
Can a garage conversion decrease the value of your house?
This is unlikely, although it can affect the desirability of the home and in turn the sale price achieved. For example, a large high value home with ample living space could be negatively impacted by removing the garage. The reason for this is more affluent buyers tend to have high value cars or hobbies that require accessible storage space. Removing useful storage space to add generic living space that already exists in abundance could reduce the number of interested buyers which is linked to lower sale prices.
Another scenario that could reduce the value is if parking is at a premium in your area and the garage conversion eliminates the only off-street parking. If this relates to your situation and the overall property value is important to you, I recommend you speak to local estate agents first.
What type of conversion adds the most money to a houses value?
Adding bedrooms generally increases the value of smaller properties by the largest percentage. Taking a 2-bedroom home to a 3-bedroom means the property will appeal to a far larger market and in turn achieve a higher sale price.
A bedroom and en-suite garage conversion can prove especially desirable for mid-sized homes where older children or grandparents would benefit from more independent living space.
Kitchen-Diner projects also seem to add significant value although they are also the more costly garage conversions to undertake. The reason is they normally require structural work to achieve the open plan living arrangement that drives property values upward.
Can I release the additional value created by a garage conversion?
Yes, as long as the banks surveyor agrees with the new valuation you should be able to borrow additional funds on top of your mortgage based on the increase in valuation. This is known as a remortgage or further advance. If this is how you intend to finance the project, then I advise you to speak with a qualified mortgage broker prior to starting the work.