If you have been left frustrated by the housing market, or you have a million and one reasons why you would rather stay in your current home than move, you should do so. If your main reason for moving home is to enjoy more space inside your house, you’ll find extending your property is the ideal solution. Of course, how do you pay for an extension?

Moving home right now is expensive, with property prices rising. It is easy to consider a property renovation project as the more affordable option, but this doesn’t mean it is cheap or affordable. Extending your home can add value, more than justifying the outlay in the short and long term, but you still need the money to pay for these changes.

How much does an extension cost?

Paying for an ExtensionOne of the challenges in providing guidance as to how much an extension costs is that no two projects are the same. There are so many variables involved with home extensions, and any of the following factors will influence the price you have to pay:

  • The style of extension you need at your property
  • The size of the extension required
  • Whether the extension is being carried out at ground level or not
  • The materials used during the renovation work
  • The style of property you have
  • Existing demand for property in your area
  • The timescale you have for the extension work to be completed
  • The availability of professionals to carry out home improvement work

With so many factors involved, the cost for you to extend your home might be very different from the cost a friend, neighbour, colleague, or family member might face when improving their home.

Therefore, it is best to speak to professionals and experts. It is good practice to receive at least three quotes from building professionals, and then you should work out which quote best meets your need.

According to Checkatrade, the cost of home extension work ranges from £7,500 for a garage conversion up to £160,000 for a basement extension.

For a single-storey extension, Checkatrade lists the following price ranges per size of the room being added:

  • A 20m2 extension is estimated between £25,000 – £50,000.
  • A 30m2 extension is estimated at £37,500 – £67,500.
  • A 50m2 extension is estimated between £62,500 – £112,500.

How much value does a home extension add?

There are many factors involved in calculating the added value from property extension work, but there are some general figures.

Nationwide has previously published figures which indicate a loft conversion can improve the value of property by 21%. The same source suggests you can add 11% in property value by adding a bedroom to your home. Property market specialists Savills say adding a conservatory might add 10% to the value of your home.

For a property initially valued at £400,000; adding a conservatory could add as much as £40,000 to the value of your property.

Checkatrade states the following average costs for a range of conservatory types:

  • A lean-to uPVC conservatory will cost around £10,250
  • The average cost for a lean-to wood conservatory is around £13,500
  • The average cost for a Victorian-style conservatory, in uPVC, is £12,750
  • The average cost for a Victorian-style conservatory, in wood, is £16,750
  • For an Edwardian-style conservatory, the average cost for uPVC is £10,250; and for wood, it is £14,250

Depending on the existing value of your home, the added value of adding a conservatory might significantly exceed the cost of adding a conservatory. Therefore, if you need this just to embark on this extension, you can do so with confidence.

If you need further assistance, we can help

At The Money Hub, we appreciate the benefits of extending your house, and why so many homeowners are keen to carry out this work at home. We also understand the cost of adding more space to your property requires many households to seek a financing solution.

If you need further assistance in determining the best way to pay for a home extension, contact The Money Hub, and we will be more than happy to assist you.

How Do You Pay For A Home Extension?

If you are looking for assistance to pay for your home extension, it makes sense that you would consider a loan, and you have a few options:

  • You can remortgage your current home – By releasing equity from your property, you increase the borrowing on your mortgage, allowing you the funds to pay for the property extension
  • You can take out a secured loan on your current home – This style of loan is secured on your property, but it will be separate from your main mortgage
  • You can arrange for an unsecured loan – This style of loan isn’t secured on your home or any asset
  • If you are in the position to pay cash or upfront for the work, this is an option to consider, but if you are reviewing your options to finance a home extension, it is likely you are keen to use external support

The right option for you will depend on your finances, but it is far more common for homeowners to remortgage their property or take out an additional secured loan to pay for an extension than to arrange an unsecured loan.

Can I remortgage to pay for an extension?

As a homeowner, you should be able to remortgage your property for an extension, but there are some things to think about.

How much equity is in your home?

The level of equity in your home is an issue to consider when considering remortgaging to fund a housing extension. The simplest way to do this is to subtract the value of your mortgage balance from your property value.

If your property is worth £400,000; and your current mortgage balance is £300,000; you hold £100,000 equity in your home.

The Loan to Value (LTV) ratio, the ratio of the loan compared to the property value, works out as 75% in this example. (300,000 divided by 400,000 equals 0.75. Times this by 100 to get a percentage, and this equals 75%.)

Your lender will consider the LTV to determine your suitability for the mortgage. A lower LTV means the homeowner has more security, and they will generally benefit from lower rates and a less strict lending policy.

For homeowners with a higher LTV, lenders are more likely to offer lower rates, and to be more selective in who they offer a loan to.

Lenders will also consider elements like the applicant’s age and credit history when they make a decision on the loan they are willing to offer.

Affordability also matters

While lenders will consider affordability, so it is an important issue to consider, it is vital homeowners think about affordability for themselves. You want to be able to afford the payments while still offering yourself some leeway to enjoy disposable income or prepare for unexpected events.

A good industry rule of thumb when remortgaging for property extensions stands at three or four times your income. Of course, some lenders are willing to offer applicants more, and it is not uncommon for some lenders to offer up to six times an applicant’s income in funds.


With the housing market being extremely challenging for buyers right now, it is natural that households will consider extending their homes to avoid moving.

The cost of property extensions, even at the more affordable end of the market, requires most homeowners to seek additional assistance. The best finance solution for you depends on your circumstances and a range of external factors.

There is a range of finance solutions on offer, which allow homeowners to add more space to their homes. Anyone looking for guidance on how to make changes that add space, value, and utility, affordably and justifiably, should speak with a financing expert.

How to explore the cost of extending your home with The Money Hub

Call the Money Hub Limited on 0203 725 5830 and speak to one of our highly specialised and dedicated Mortgage Advisors or you can complete an enquiry form which will allow you to schedule a call time.

DISCLAIMER: These articles are for information only and should not be construed as advice. You should always seek advice prior to taking any action.