If you’re a homeowner, then there is a strong chance that you’ve taken a look at all of the improvements that you could make to your home and researched just how much they cost.

While you would probably assume improvements to a home would always add to a property's value, not all changes are as profitable as you may think and some renovations could even negatively impact your home’s price tag.

Measuring against the average property value in the UK (&225,621) Go Compare Home Insurance set out to discover the average cost of some of the most common home improvements and how they affect a home’s value once completed.

According to their research, the most profitable upgrade to a home is installing a brand-new boiler, while this may set you back by &1,995 it is estimated that this could increase the home's value by &9,024 (4%) which is a huge profit of &7,029.

Costing a considerable amount more, but adding the same amount to a home's value is central heating, installing a new system will add &9,024 property’s price tag, but it will cost you approximately &4,250. This is still a profit of &4,774, but not the massive profit margin of a new boiler.

In third place in terms of profit was knocked through rooms, according to the report creating more of an open space throughout the home costs an average of &1,750 but raises a home's value by &4,512 (2%), resulting in a profit of &2,762.

What may come as a surprise is the upgrade that had largest negative impact on a home's value. The study found that installing solar panels not only cost an average of &5,000 but knocked &4,512 off the value of a home. While you may recoup some of these losses in the savings on your power bills, it seems that not everyone is a fan of the aesthetic.

Henry Pryor a property buyer who conducted the research, offered his advice on the best way to approach improving your home “Most buyers prefer to pay for the opportunity to be able to add an attic conversion, kitchen extension or convert a basement. Getting planning permission to do the work is frequently the best investment you can make leaving the actual choice of layout, decoration and equipment to the next owner,

“Improving the green credentials of a house usually pays, such as a new boiler, insulation or energy saving measures along with security improvements will usually pay off but some additions like solar panels will be hard to get a payback on immediately,”

Whether it’s a little country escape, a place by the sea or even somewhere abroad, who wouldn’t love a home away from home?

Whilst this may be a lovely daydream, the reality of owning more than one property can be complicated, with several extra factors to consider before making your dream a reality. We’ve put together some facts you should consider before taking the leap into second home ownership.

Why do I need this property?

You will need to have a serious heart-to-heart with yourself and your other half about the purpose of buying your second property.

It is important to bear in mind that you will need to go through the stressful process of buying a home, with the added stress of the property not being in your local area, as well as furnishing and decorating the property, and the end result is you own a property you will probably only visit a handful of times each year.

There are other options available to you depending on what your needs are, for example, if you’re dreaming of a holiday home why not look into a timeshare? Or if you’re a professional looking for accommodation in the city, you could consider renting.

Location, location, location

The location of your property will affect every aspect of your ownership. Whilst it is lovely to have a home that’s 150 miles away from all the day to day stress, that’s a 300-mile round trip every time you’re looking to visit.

If you are considering a holiday home and would like to act as a landlord when you aren’t occupying the property, then you will need to consider how you will keep tabs on the property when you are so far away. Little details like finding trustworthy tradesman become more complicated when you don’t know the area.

You should also consider whether you know the area you’re looking to buy in well enough before you finalise anything. For example, cheap property in the city might be in a student area. It’s worth doing some research before making the move.

The cost of running your second home

You will also need to consider the cost of running your second home. You will need home insurance, broadband, telephone, electricity, water and heating as well as paying the various taxes that come with owning property.

Whilst you won’t be paying the same rates (because you won’t be there all the time) however, certain bills (like the internet) will stay at the same rate no matter the amount of usage you get from the service.

You will also need to consider taking steps like keeping your heating on during the winter so that the pipes don’t freeze.

Mortgage

Second homes are not exempt from taxes like stamp duty and capital gains tax, which will add to the cost of purchasing your property. You will also have to decide whether to take a loan for your property or to remortgage your main home.

A joint mortgage is a common method for groups of buyers who are looking to share the costs of buying a home. Whether you are a couple looking to buy a home, family members, friends or business partners, a joint mortgage can assist you with dividing up the share of the property and spreading out the monthly mortgage repayment.

You don’t even need to be living with the other party. For example, children and parents will often take out a joint mortgage so that the parents can assist with the cost of buying a first home.

How do I go about getting a joint mortgage?

The process is the same as applying for a regular mortgage. Both parties will be required to attend the mortgage interview and you will both need to provide all the same relevant documents should a lender request them.

The only limitation you may face is if you are applying for a mortgage with more than three people.

How much can you borrow with a joint mortgage?

One benefit of taking out a joint mortgage is because it increases the amount that a lender will be prepared to advance.

Lenders will take both parties income and outgoings into account in an affordability assessment, with most lenders offer a calculator on their website for figuring out the cost.

So how is the mortgage split between the parties?

There are two ways that a joint mortgage can be split.

Tenants in common

Tenants in common allows each party to own a different share of the property. Each party is also allowed to decide who they leave their share to when they die. All parties are required to consent to a sale. This type of policy usually suits friends or family buying property.

Joint tenants

Joint tenants is better suited to couples looking to purchase a property. Each person has a 100% stake in the value of the property. Again, both parties must consent before the property can be sold. If one of the parties dies, the share of the property passes to the other owner.

What happens if one of us stops paying?

Whilst both parties are jointly liable for a joint ownership, the lender won’t care whether the repayment is split evenly down the middle. The other party not paying their share won’t be accepted as an excuse for failure to repay.

Mortgage lenders aren’t interested in which of you has contributed more, they will just expect the payment.