Buying an ex-PRC house

gobbolino_2

Hi all,

I have just had an offer of 105k accepted for a 3 bed semi in a nice area of a quiet suburb. It was on the market originally at 135 and came down to 115. However, the mortgage lender has valued it at 100k due to it having been converted from a pre-reinforced concrete house to red brick (it is also still attached to a non-traditional house!). Fair enough, I thought - I wanted the survey done to discover its true value. However, the surveyor also warned me of the inability of such a property to gain value, and the potential difficulty in selling it. All the documentation regarding its conversion is in place according to the surveyor. It has been well looked-after, has a lovely garden and is in a great spot so it is tempting, but I am a bit worried about buying into a curse!

Other 3 bed semis in the area start at 140k asking price. What does everyone think of these types of houses, how much are they worth pre- and post-conversion generally, and are they really unsellable even after conversion. If I want to live in a nice quiet area in a house this size, I can't afford anything else although we might have to move in 5 years time and I want to be able to sell the place if needs be (though we should know well in advance if we need to move).

I can post the rightmove link if anyone wants, and if the mods think it appropriate

Thanks

muskoka

I've owned & converted a Cornish PRC house. Firstly, you must ensure that the conversion was carried out & certified by one of the approved license holders. i.e. There should be a special certificate confirming this. The house I owned was mint condition,extended and in a spectacular location and it took me a year to sell it in a rising market (some years ago). I also had to drop the price a few times. Even then (circa 10 yrs ago), it was difficult to get a mortgage on the house (even with a certified re-instatement certificate). I;d be surprised if you can even get a mortgage on them at all now, especially if your next door neighbour is still PRC.

Having said that, It was one of the nicest houses I ever lived in. It was a lovely little house & I was sad to move on.

Personally, I dont know why PRC converted houses are balked at by mortgage companies. Mine was converted using brick/block cavity & I'm sure it was every bit as strong as any other house.

If you are looking at re-sale in 5 years, only you can decide BUT dont go paying out any fees until you are sure you can get a mortgage on it (if you need one). When I was buying, I did a lot of talking to Halifax surveyors directly. (In that I got my mortgage from Halifax)

Also, speak to the Planning in the Council where the house is - they shoudl be able to tell you when the conversion was done, that it was done under a PRC reinstatement license, etc BEFORE you spend any money.

Apologies Looks like youve already had survey done. Not sure if this means they will definitely lend you the money - if so, great if thats what you want to do.

TrickyDicky101

I think you will need to go back to the vendors and renegotiate on the price if the survey has come back £5k under your offer too - remember anyone else who makes an offer on this place will find exactly the same after their own survey so the vendors are more likely than not to negotiate due to this valuation.

selby

If you are likely to be moving on within a few years, you do need to consider how easy it is to sell! I would give this a pass and look for another property myself. Now, if it was a long term house, it would be a different prospect.

gobbolino_2

Hi all,

Thanks for the advice. I wanted the survey done because I found it impossible to estimate the houses real value, as the only other houses on the street to sell have gone for between about 70k but all look pebbledashed -possibly unconverted. Am waiting on the surveyors full report but he said the decision would be subject to the presentation of an accurate reinstalment certificate as muskoka says.

As the Halifax have approved the lend, I assume they are happy with the structural alterations as they have his full report, but they wont lend on the full asking price so I cant afford the now enormous deposit. I am letting the vendors know this and leaving the ball in their court. Would it really be so difficult to sell if I got it for somewhat less than 100k? Would it help anyone to give advice if I sent a link to the property?

AliceBanned

Hi

I am in a similar position and am probably going to go ahead with the purchase. I have spoken to surveyor friend who has seen 1000s of properties and said it is one of the best flats he's seen, and he said he would buy it with no worries. He said that as it has been reinstated with brick and the fact that it is half the cost for the size, of anything else in the area, it is worth buying on rental value alone.

Like you I really like my flat ( I currently rent it from a housing assoc) and the only concern is the mortgageability. A similar one in my street sold at auction for a good price. True they don't rise a huge amount in value but also the value is whatever someone wants to pay for a place. Mine is 40 mins from London by train and will cost me £70k and is large with a garden and very pleasant inside. I've lived here for five years already and despite searching, have not found anything else to match it. My guess is that despite the concrete construction, if it is a nice place to live and good value for money, especially in these times when many people aren't in a position to buy, it is a reasonable option.Mine is cheaper than a park home and people do buy those! Good luck whatever you decide.