4 April 2007
Loft conversions are the latest craze to take Britain's DIY enthusiasts by storm according to Alliance & Leicester's Personal Loan and with the value of the house increasing by an average of £100,000 once it's completed, it's easy to see why.
What's more, with the average conversion costing around £23,000, it can be relatively easy to fund one, with great rates available from a large number of banks for personal loans.
Figures from Alliance & Leicester showed that in London, a dormer loft conversion to a three-bedroom home costs £25,000 on average, but could return a whopping potential profit of nearly £146,000 - if the homeowner went on to sell their property.
Similarly, the average cost of a loft conversion in the north-west stands at £22,080, but could add £97,888 to the value of the home. In the west Midlands, the cost of converting a three-bedroom home to a four-bedroom home is around £22,000 - but could add more than £100,000 to the value of the property.
Richard Al-Dabbagh, Alliance & Leicester Senior Personal Loans Manager, said: "Carrying out home improvements instead of moving can have amazing results, potentially increasing the value of your existing property and also saving a great deal of money as well.
"If you are looking to undertake a sizeable home improvement, there will be a massive temptation to simply take out a further advance on your mortgage. But a personal loan could represent a cheaper alternative for those who can afford higher monthly repayments over the shorter term."