An increasing number of people are renovating older properties to make them more energy efficient, rather than moving, it has been revealed.
The current economic climate could make moving home an unattractive option, especially with the potential necessity to significantly lower an asking price in order to attract buyers.
However, the Times has reported that some homeowners are making their current properties more energy efficient in order to lower their home heating bills. But such extension work could come at a price.
Chris Radford, chief executive officer (CEO) of aap - the UK's biggest buyer of endowment policies - said many of its customers had sold their unwanted endowments in order to renovate or improve their house, rather than moving.
Speaking to the newspaper, Sarah Harrison, an environmental consultant, has told how she renovated her unmodernised Victorian semi. She fitted "state-of-the-art double glazing", invested in solar panels and a rainwater-harvesting system, as well as installing a wood-burning stove.
"We turned off the heating in March and we have only needed to turn it on twice, for an hour each time, since," Ms Harrison said.
Her household carbon emissions have been cut by 70 per cent and she uses 30 per cent less water. Indeed, the recent Halifax Home Improvement Survey revealed that green home improvements have risen in popularity as many homeowners think they will get good value for money with the future cost savings they could deliver.
Despite such savings, the initial work can be expensive. Ms Harrison paid £17,000 for her home improvements and other eco repairs, the newspaper noted.
Some Britons may decide to make their property as green as possible in order to save money on home heating bills further down the line, especially as the cost of fuel has increased.
However, as the newspaper noted, it can cost a large amount of money, a sum which many households may not have to hand during the current recession.
Rather than get into debt to fund extensive home improvements, some individuals may be addressing ways in which to raise the cash.
People who have already considered selling their endowment policies may not realise that selling their policy is another avenue they could go down.
CEO of aap Chris Radford stated that should the firm decide to make an offer to buy an endowment, it will always pay more than the surrender value offered by the insurance company.
Source
Monday, September 28, 2009
Tuesday, September 15, 2009
Is selling my endowment for home improvements a good idea?
House prices experienced an annual drop of 14 per cent in June, taking the average value of a home to £153,046, new figures have revealed.
The statistics from the Land Registry showed that all regions in England and Wales saw a decline in the average value of a property over the past 12 months. The region with the most significant fall was the north-east, where property prices plummeted by 15.9 per cent.
However, Luton experienced the biggest annual price fall of 23 per cent. In contrast, houses in London saw a two per cent value increase, bringing the average property price up to £301,859, the survey found.
Completed house sales fell by 42 per cent between this April and the same month last year. As such, homeowners who intend to put their property on the market may want to carry out some DIY or invest in large improvement ventures to boost the value.
Chris Radford, chief executive officer of aap - the UK's biggest buyer of endowment policies - said some of its customers had sold their endowments to cover the cost of big lifestyle changes, such as adding an extension or doing up a property.
Obtaining cash through endowment selling could be required. Adding a conservatory to a property can cost Britons around £20,000. However, homeowners have been advised not to try and carry out this project on the cheap.
Jason Orme, editor of Homebuilding & Renovating Magazine, said money should be put towards properly planning a conservatory, making sure it is well designed and that is tailored to fit in with a home.
"It is often the case that a cheap bolt-on added on to a lovely country house would not add any value at all and probably would take it away. But a really well-designed individual conservatory added on to any kind of house will add value," he stated.
The average cost of an extension is £19,922, although over £25,000 could be added to the value of a property, Halifax's latest Home Improvement Survey revealed.
Money for an extension could come from selling, rather than surrendering, an endowment. Mr Radford said that if aap decides to make an offer to buy an underperforming endowment, it will always pay more than the surrender value provided by the insurance company.
Ensuring a conservatory and the rest of a property is as energy efficient as possible could not only lower energy bills, but make a home more attractive.
The Halifax Home Improvement Survey discovered that fuel-saving and energy efficiency measures are the most popular home improvements and individuals think they can get the best value out of them.
While installing solar panels, replacing an old boiler with a greener condensing one, lagging pipes and insulating walls may all cost money, Mr Radford said some of aap's customers had sold their underachieving endowment policies to cover such needs.
Indeed, over the past 12 months, the average amount that Britons have spent on property improvements is £5,344, the Halifax study showed. The typical value individuals think DIY adds to their home is £6,466, representing an average return on investment of 120 per cent.
To make a home more appealing to potential buyers, people may have looked at adding an extension, fitting a new kitchen or making a home more environmentally friendly.
Homeowners who have already considered surrendering an unwanted endowment policy to raise money may not have realised that selling is another option available to them.
And if an endowment is sold through a secondary market maker such as aap, people could find they receive more cash then they would have got from the surrender value, if the company makes an offer to buy their policy.
The statistics from the Land Registry showed that all regions in England and Wales saw a decline in the average value of a property over the past 12 months. The region with the most significant fall was the north-east, where property prices plummeted by 15.9 per cent.
However, Luton experienced the biggest annual price fall of 23 per cent. In contrast, houses in London saw a two per cent value increase, bringing the average property price up to £301,859, the survey found.
Completed house sales fell by 42 per cent between this April and the same month last year. As such, homeowners who intend to put their property on the market may want to carry out some DIY or invest in large improvement ventures to boost the value.
Chris Radford, chief executive officer of aap - the UK's biggest buyer of endowment policies - said some of its customers had sold their endowments to cover the cost of big lifestyle changes, such as adding an extension or doing up a property.
Obtaining cash through endowment selling could be required. Adding a conservatory to a property can cost Britons around £20,000. However, homeowners have been advised not to try and carry out this project on the cheap.
Jason Orme, editor of Homebuilding & Renovating Magazine, said money should be put towards properly planning a conservatory, making sure it is well designed and that is tailored to fit in with a home.
"It is often the case that a cheap bolt-on added on to a lovely country house would not add any value at all and probably would take it away. But a really well-designed individual conservatory added on to any kind of house will add value," he stated.
The average cost of an extension is £19,922, although over £25,000 could be added to the value of a property, Halifax's latest Home Improvement Survey revealed.
Money for an extension could come from selling, rather than surrendering, an endowment. Mr Radford said that if aap decides to make an offer to buy an underperforming endowment, it will always pay more than the surrender value provided by the insurance company.
Ensuring a conservatory and the rest of a property is as energy efficient as possible could not only lower energy bills, but make a home more attractive.
The Halifax Home Improvement Survey discovered that fuel-saving and energy efficiency measures are the most popular home improvements and individuals think they can get the best value out of them.
While installing solar panels, replacing an old boiler with a greener condensing one, lagging pipes and insulating walls may all cost money, Mr Radford said some of aap's customers had sold their underachieving endowment policies to cover such needs.
Indeed, over the past 12 months, the average amount that Britons have spent on property improvements is £5,344, the Halifax study showed. The typical value individuals think DIY adds to their home is £6,466, representing an average return on investment of 120 per cent.
To make a home more appealing to potential buyers, people may have looked at adding an extension, fitting a new kitchen or making a home more environmentally friendly.
Homeowners who have already considered surrendering an unwanted endowment policy to raise money may not have realised that selling is another option available to them.
And if an endowment is sold through a secondary market maker such as aap, people could find they receive more cash then they would have got from the surrender value, if the company makes an offer to buy their policy.
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