Renovation Mortgages > Adding value with a renovation
What adds the most value when renovating a house?
The ultimate goal of renovating your home is to increase the property’s value. But the key is knowing which improvements will genuinely add worth, and how to plan, finance, and deliver those effectively.
Best ways to add value to your house
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Add more space
The most reliable way to increase property value is to add usable floor area. More space almost always equals more value, especially if it creates an additional bedroom, bathroom, or living area.
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Extensions
Adding a single- or double-storey extension is one of the most effective ways to grow both the footprint and the worth of a home. According to recent property reports, an extension can increase value by 10–20%, depending on location and design.
A well-planned extension can transform a 3-bed home into a 4-bed family property, which opens up an entirely new buyer market. Even a modest kitchen or utility extension can significantly improve layout and functionality, which valuers and buyers both recognise.
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Loft conversions
A loft conversion adds valuable space without reducing your garden size. It’s particularly worthwhile in areas where outdoor space is limited or where extending outward isn’t possible.
Typical costs range between £40,000 and £60,000, with a potential 10–15% uplift on completion. As long as the conversion meets Building Regulations and includes permanent stairs, it’s counted as official living space, which is a key factor in lender and valuation calculations.
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Improve layout and flow
Removing unnecessary walls to create an open-plan living space, combining small rooms into one light-filled area, or improving access to gardens or extensions can make a home feel larger and more practical.
These changes typically cost less than major structural work but can still increase value by 5-8 per cent. A thoughtful layout that enhances everyday living will always appeal to buyers.
What rooms should you renovate?
In our experience, the best rooms for you to renovate in your house to add value to your home are the kitchen and the bathroom:
Kitchens: A modern, functional kitchen can transform the feel of a home and typically adds 5–10% in value. The best upgrades strike a balance between quality and cost, focusing on a well-designed layout, efficient storage, and durable finishes rather than extravagant luxury fittings.
Bathrooms: Bathrooms contribute a minor uplift (3-5%), but the impact on buyer perception is substantial. A clean, contemporary bathroom with proper ventilation and good lighting can instantly modernise a property.
If you’re still working through how this could work for you, you can book in a FREE call with our expert teams to get their advice.
Upgrade energy efficiency
Energy performance is now one of the most significant factors influencing property value. Homes with a higher Energy Performance Certificate (EPC) rating consistently sell faster and for more money than those with poor efficiency.
Simple upgrades, such as adding insulation, fitting double or triple glazing, replacing an old boiler, or installing solar panels, can add 5 to 15% to a property's value while reducing monthly running costs.
For older properties, improving insulation, windows, and heating isn’t just about comfort; it’s about future-proofing your investment. Many lenders and buyers are now prioritising homes that meet modern energy standards, and some offer “green” mortgage incentives for properties with strong EPC ratings.
If your renovation includes sustainability upgrades, you may also be eligible for VAT reductions or government schemes, such as the Boiler Upgrade Scheme or ECO4 insulation support.
Aesthetic renovation improvements
Whilst functional home improvements naturally increase the value of your home, don’t underestimate the impact that aesthetic renovations can have.
Improve layout and flow.
Removing unnecessary walls to create an open-plan living space, combining small rooms into one light-filled area, or improving access to gardens or extensions can make a home feel larger and more practical.
These changes typically cost less than major structural work but can still increase value by 5-8%. A thoughtful layout that enhances everyday living will always appeal to buyers.
Tackle structure and kerb appeal.
Before thinking about cosmetic upgrades, it’s worth investing in the basics. And structural soundness is a key factor in any valuation. Addressing damp, outdated wiring, roof repairs, or window replacements won’t necessarily make a property more luxurious, but it will make it mortgageable, which is essential for both buyers and lenders.
Kerb appeal also counts. A freshly painted exterior, a new front door, a tidy garden, or a resurfaced driveway can significantly enhance first impressions and increase marketability by up to 5%.
How can renovations increase borrowing power?
Not every upgrade improves your property’s financial worth. Highly personal decor, overly niche luxury features (like cinema rooms or saunas), or overdeveloping beyond your local area’s ceiling price can all reduce potential return.
When in doubt, focus on broad appeal, things like functionality, light, warmth, and flow. These are the qualities that matter most to valuers and future buyers alike.
Once your renovation is complete, that uplift in property value can then:
✔ Help you gain access to better mortgage rates.
✔ Increase your available equity for future projects.
✔ Qualify you for specialist products, such as green mortgages or self-build remorgages.
How to fund your value-adding renovation
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Renovation Mortgages
These are tailored for properties that need major work or aren’t currently mortgageable. Funds are released in stages as the build progresses, allowing you to manage cash flow and reduce risk. Perfect for large projects, such as extensions or full-property restorations.
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Self Build Mortgages
If your renovation involves a full rebuild or creating a new home from an existing shell, a self-build mortgage may be more suitable. It offers staged funding, flexibility with design and materials, and the potential for lower long-term rates after completion.
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Conversion Mortgages
A massive renovation where you’re looking to turn barns, offices or outbuildings into homes require conversion-specific lending. Especially if you’re looking to renovate a unique or listed building, you’ll need to work with an expert to have access to specialist advice.
Regional and practical factors
It’s important to note that property value appreciation varies by region. In the North and Midlands, lower build costs often mean higher percentage returns. In London and the South East, values are higher, but margins are tighter.
Quality also matters. Poor craft or non-compliant alterations can significantly reduce the value of a space, even if it appears impressive. Always ensure work is fully signed off under Building Regulations, and keep all documentation, as lenders and valuers will need it later.
How can Mayflower help your renovation?
With over 15 years of experience in renovation, conversion, and self-build mortgages, our advisers are specialists in funding property improvement projects that add lasting value. We can help you:
Identify the correct type of finance for your project size and scope.
Access exclusive lenders who understand complex renovations.
Plan your funding around the stages of your build and your valuation goals.
Manage the process from planning to final sign-off with confidence.
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Ready to add value to your home?
At Mayflower, we specialise in self build, renovation, and conversion mortgages. So whether you’re extending, converting, or improving energy efficiency, Mayflower can help you plan and finance your project the right way.