Top Tips for Funding a Loft Conversion

A loft conversion is almost always a sound investment. It will add much desired space to your home which, in turn, can increase its value by an average of 15-20%. However, although the benefits of a loft conversion are clear, it can sometimes still be difficult to find the money to cover the costs.

As such, we’ve compiled our top tips for funding a loft conversion, detailing various ways in which you can amass the money needed in a simple and fair manner. This advice should help you fund your dream loft conversion, adding space and value to your home in the process. Simply read our tips below before assessing your options, bearing in mind your individual situation and requirements.

Savings

It could be that you already have enough money to cover the cost of a loft conversion. Whether that’s been achieved through years of saving, a bonus from work or an inheritance, it is highly recommended that you hold back a proportion of the money to cover any unforeseen costs. You can also look into securing a fixed quote, meaning the initial projected cost cannot be changed throughout the construction process.

Loans

If you don’t have the required savings, and instead need an alternative method to fund your loft conversion, a personal loan can be a fantastic solution. It will enable you to spread the payments out over time, selecting a repayment term to suit how much you can afford.

Loans can be taken out as ‘secured’ or ‘unsecured’. Secured loans are granted on the basis that you own something which will reassure the lender that they will get their money back – this is most often a house. Unsecured loans, on the other hand, are based solely on background credit checks and are usually capped at approximately £25,000.

Home improvements are actually one of the most popular reasons for taking out a loan so you can expect the bank to understand your reasoning and be satisfied with the loan’s purpose. In fact, as long as you can demonstrate that you will be able to afford the repayments and have a fair credit history, it is likely that your application will be successful.

Remortgaging

Another way to fund a loft conversion is to consider remortgaging your property. If you have owned your home for a while and its value has increased over this time, you may be able to borrow money against it. This essentially means you will release some of the equity from the property in order to pay for the loft conversion.

Most mortgage lenders will be happy to look into remortgaging your home as you will be adding value to it in the process. As long as you have an average banking and credit history and can afford the mortgage repayments, most remortgaging requests are accepted.

Here at AKB Loft Conversions we are conversion and extension specialists. We have a wealth of experience planning, designing and installing fantastic quality loft conversions, completely transforming your home as a result. For more information, simply get in touch with our friendly team today!