Right now it's a buyers market in the UK and not necessarily the best time to sell. However, it could be a good time to try to add value to your home by improving on your space and use of rooms, so that when the market does swing back, you can capitalise on your property. And in the meantime you can enjoy the extra living space.

Home extensions are quite common in the UK especially in older homes, but there is a list of factors that should be considered before any decisions are made.

Choose your builder carefully. Ask around for recommendations, but whoever you choose, check their qualifications. The National Federation of Builders is a good place to start for this type of information, you can call them on 0870 8989 091.

You may want to consider working with an architect, at least during the early stages of your building project. If they are involved in the early planning stage, employing an architect can help to reduce costs because they are trained to see the bigger picture and to solve problems creatively. For more information, go to the Royal Institute for British Architects website.

Before you speak to anyone about building, however, ask yourself these four questions:

• What do I need the extra space for? Is it to make room for a nursery, a guest room, an extra sitting room? Keep in mind that if you want to add extra bedrooms you may also need to consider adding a bathroom.
• Where do I want the extension to be? Will you be using the loft space or perhaps the cellar space? Will you be adding an extra floor or taking up some of the garden space? Whatever your ideas, a well qualified builder will be able to guide you in your choice. A typical reason for an extension is to add more space so make sure that it will be a valuable addition to your home, and that you're not simply splitting space up or adding a room that won't be used.
• Will I require building permits? Speak to local building regulators or contact your local government to check what permits you may need to build. Minor changes, such as putting up a small fence, may not need a permit but it's better to check before you start. Once the building begins you don't want to find yourself in a situation where you're ordered to put everything back to its original state because plans were not approved on time.
• How much can I afford? If you plan carefully there should be no reason for the project to run over budget. Don't even try to start construction on your house if you don't think that you have the necessary budget. Living in an unfinished construction site will be very uncomfortable. If you're unsure about how much everything will cost, speak to one of our consultants about a home improvement loan to discuss your borrowing needs.

Our typical APR for loans £7,500 to £14,999 is 8.2%.

Loans available to UK residents and over 18s only. Rates depend on circumstances and loan amount.

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