Renovating a property is a big decision for homeowners and prospective investors alike. It can be an exciting opportunity that leads to increased value, but it can also be a costly mistake when done without the right expertise and know-how. In this article, we'll explore the pros and cons of property renovation, so you can make an informed decision before taking the plunge.

Pros and cons of property renovation

One of the biggest advantages of renovating a property is that it can increase its value significantly. By modernizing a home and adding features, you can often make it more attractive to potential buyers, making it easier to sell in the future for a higher price than when you purchased it. In addition, renovation projects can also help you to reduce your energy bills with the addition of insulation or other green features, saving money in the long run.

However, there are drawbacks to renovating a property as well. Renovations can be expensive and time consuming, and if done incorrectly they can cause more damage than good. It’s important to remember that renovation can sometimes be more expensive than building a new property from scratch, so it’s important to do your research and weigh up the costs before making a decision. Additionally, it’s important to check local regulations as some properties may have specific requirements that must be met before renovations can take place.

Renovation project

The property will need a full structural survey so you can find out if anything is wrong with the building before your project begins. You will also need the correct documentation and planning permission before the renovation goes ahead.

If the current condition of the property is worse than you originally thought then to add real value to the property you may need to put in a new kitchen and assess the state of the bathrooms as you may need to renovate them too. It will benefit you to budget for more than you are expecting the project to cost in case hidden problems are discovered such as structural work.

If your aim is to renovate the house with the thought of selling it afterwards, choosing the right property to spend your money on is important. If the demand isn't high in the area, it may take longer to sell. Many buyers look for properties in their desired location so meeting this demand will give you the best chance.

Mortgage funds

There are mortgages available that may be able to help fund your renovation if needed, such as:

• Bridging finance - For individuals in need of fast cash, bridging loans offer a very attractive alternative to borrowing money from banks or other traditional financial institutions. The application process is simple and straightforward, allowing borrowers access to capital quickly. Additionally, interest rates are typically higher than those associated with bank loans, secured loans, so consider all options when choosing the most suitable way to obtain short-term finances.

• Conversion mortgage - A conversion mortgage is a form of finance that allows people to purchase derelict or abandoned buildings and convert them into residential properties. This type of loan is popular amongst property developers and investors who want to maximize their investment potential.

• Remortgage - If you have enough equity in your property, you may have the option to remortgage and take additional funds to do your home improvements

Overall, renovating a property can be a great investment but it’s important to do your research before committing. Make sure you understand the costs and local regulations, and get expert advice if necessary, to ensure that the project is a success. Before you start such a project, you will need to carefully think about whether this is the perfect property and ideal location, you will also need to make sure it is the right decision for you. With the right preparation, renovating can lead to increased property value and improved energy efficiency for years to come.

If you are looking for a mortgage to convert or renovate your dream home, call us today at 0151 662 0188 or email [email protected]