Is a Basement Worth It?

Cost per square metre versus the value it genuinely adds

A basement costs more per square metre than almost any other space you can build, the cost varies enormously with the ground beneath you, and the finished space is often valued at a discount to the rooms above. This book teaches you to work out, before you commit, whether a basement is worth it. It shows where to find sold prices, the local ceiling and comparables with and without basements, and how to sense-check build costs. You will learn why usable area is smaller than dug area and why the value added is the difference between two valuations. The full cost stack covers construction, the professional team, waterproofing and drainage, VAT, finance and contingency. The appraisal is stress-tested for an overrun, a down-valuation, the cost of money and time. A worked example runs the same basement in two locations to show why it pays in one and not the other, and the final chapter gives you a calculator and its limits. Next in this series: “Party Walls, Structure and Damp”.

What’s inside

• The only numbers that actually matter
• Where to find reliable local data for free
• Working out true value, not optimistic value
• The full cost stack nobody mentions
• Stress-testing for the overrun, the down-valuation and the rate rise
• A complete worked example, start to finish
• Your deal calculator, and the legal questions it cannot answer

Educational material only, not financial, legal or tax advice. Results are not typical and are not a guarantee of income. Freedom Property Academy LTD, registered in England and Wales.