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Buying a house: what are our options?

I've started a couple of threads now on our first house, and things have progressed a little. We have put in an offer of £115,000 which was refused, the vendor says they want £130,000 (asking price is £140,000, has been up 11 months). Given the area we do think its worth more than the £115,000 and are willing to raise our offer a bit, maximum of £124,000. So the offer might not be accepted since its still below the £130,000 they've said they would accept.

They do have an offer of £130,000 on the property, but that was made 6 months ago and that person still hasn't sold their house or proceeded in any way.

The property is in a bad way, it hasn't been rewired in the 56 years since it was built, and it has a disabled wet room rather than a proper bathroom. It has a solid fuel heating system we would want to turn to oil heating, and it needs a new kitchen as the current one is 20 years old if its a day and very rikkety.

So, my question is, is it a case of getting a morgage, then once we have the house applying for a loan to do the works? Or is there another system to get the money to do the works. We have £26,000 for the deposit on the house and reasonable, although not sparkling, credit records. We earn £43,900 pa between us. We are concerned that the works will cost £20,000 minimum to about £38,000 if we do everything we want, so surely no one will loan more than the equity we have in the property?
Debt January 1st 2018 £96,999.81
Debt September 20th 2022 £2991.68- 96.92% paid off
Met NIM 23/06/2008

Comments

  • lincroft1710
    lincroft1710 Posts: 18,344 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Bearing in mind you could end up paying anything from £144K to £162K (if your offer of £124K is accepted) for the house in its refurbished condition, firstly what else is available in this price range? Secondly with £26K deposit, at the higher figure your total borrowing would be £136K, just over 3 times your joint salary.

    Suggest you put these figures to a whole of market IFA who could advise you which lender would be best in your circumstances.

    Another point. It's up to you how you spend your money but you're intending to spend £19,500 on a wedding. If you could trim that back a bit you'd have more for a deposit.
    If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales
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