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Been addicted to TV makeover shows and fancy a change to your home? Worked out your budget and aim to borrow around '20,000 ' and can't wait to start splashing the cash. Before you spend half of it on the latest designer carpets and curtains, that aren't to everyone's taste, think carefully, as this amount of money could actually increase the value of your home by up to 20%.

The key to adding value to your house is in increasing its size or space, taking it to the next level in the property market, rather than cosmetic makeovers. So ' grab a paper and pencil and get scribbling some ideas ' as converting cellars or lofts, doing an extension or developing your garden are the ways you can increase the value of your property. Here are our suggestions:

Bedroom
Adding a bedroom to your house may actually mean you don't have to move to get more space ' and can add an average of 11% to the value of the house. This far outways the cost of having to move up the property ladder, by buying a house with an extra bedroom, both in terms of the money you'd pay for the larger property, plus moving costs, including stamp duty.

Kitchen
Kitchen diners are now one of the most important deciding factors for people when buying a house ' especially families. So if you have the space to convert your kitchen and dining space into one larger room (perhaps by knocking through a wall), contact building regulations and go for it.

Updating your kitchen fittings also make a huge difference to the re-sale of a property. There are so many cheap deals available that you can create a designer look, with contemporary cupboards and built in appliances, without the designer price-tag.

Bathroom
Like kitchens, a modern, neutral bathroom can make a huge difference to a house sale, enabling you to ask a higher price. Bathrooms are now seen as luxury spaces, where people want to spend time. 10% of new properties are being built with three or more bathrooms, so perhaps you could find space to add another, or at least an en-suite to your property. This is estimated to increase the value of your home by 10%. However, any such improvements should be appropriate for your house. For example, adding a fourth bathroom to a three-bedroom house is unlikely to significantly increase the price.

Central heating
The average price of installing a new boiler and central heating system is around '5,000. Yet this is likely to boost the value of your home by up to 15%. This is equal to '15,000 on an averagely priced house.

Garage
Adding a garage or dedicated parking space, especially in urban areas, with parking restrictions, can add from 8 to 20% to the value of your property.

Loft conversion
Converting your loft into another bedroom, or two, plus bathroom will far outweigh the price you pay. And unlike extending, the planning regulations are much more straightforward.

Garden
With the rediscovered craze for being garden-proud, making the most of your outside space will seriously enhance the value of your home. If you have the space, try creating zones ' such as a grassy area, a patio ' and even a vegetable patch.

Maintenance
It's no good spending a lump sum of money extending or updating the house, if basic maintenance is ignored. This can include pointing of brickwork, repairing the roof, putting in a damp-course or replacing rotten window frames.

Storage
Ample storage space vastly enhances the look and feel of your home. No one (especially a potential buyer, if you do come to sell) likes to see boxes piled up in corners of rooms. So invest in some built in cupboard space, install a ladder into the loft, for easy access to storage space ' and get de-cluttering.

How to use your money to the best advantage

' Get several quotations from local builders ' and don't be afraid to ask for references before making your decision.

' Ask your builder to buy materials at trade prices, which are often up to 17.5% cheaper, due to them being VAT registered.

' Buy kitchen and bathroom fittings in the sales, or use ex-demonstration or end of line ones.

' Do as much of the work yourself as possible. Not everyone can fit a kitchen or do tiling, but most people can paint walls ' a job that could eat into your budget otherwise.

How to pay for the work
Adding the '20,000 onto your mortgage is by far the effective way to raise the finances for such work. The interest rates on such 'secured' loans, tend to be much better value for money than 'unsecured' loans.

Most mortgage companies are more than happy to lend money for home improvements, as the investment is usually worth more to the value of the property than the amount spent. In other words, by doing work to your house ' you're increasing the value, which is a good investment for your mortgage company!