First time buyer - possible flat refurbishment

joecool77

I have recently seen a flat for sale in need of refurbishment which I am interested in. Having viewed it I am confident there is nothing I couldn't handle myself to get it into good order. I haven't been actively looking for somewhere to buy but with an asking price of just £65k this is something I could realistically afford. The location is ideal as it's just round the corner from where my son lives and after a very quick internet search I estimate mortgage payments to be about £100 less than my current rent so I would save on that as well as fuel costs. I don't currently have a mortgage offer in place although I have an appointment with a broker in a few days.

I have asked the estate agents for information on things such as ground rent and any maintenance funds but they say they don't currently have that information. Is this something which has to be made available to prospective buyers?

I have a feeling if I were to pursue this it could all move quite quickly as the property is unoccupied with no forward chain and I don't have a property to sell so I was really hoping for a few suggestions of things I should be asking or looking out for before making an offer or applying for a mortgage. I have a basic understanding of the different types of mortgages and the differences of buying a flat over a house but want to arm myself with as much information as possible before making a decision.

Many thanks in advance

kingstreet

An agent's job is to find a "ready willing and able purchaser" for the vendor's property.

It is the vendor's solicitor's responsibility to confirm ground rent, service charges and the remaining number of years on the lease.

Agents tend to avoid such issues as they can be found liable if they were to pass on inaccurate information.

Now to the issue. What deposit do you have and what is the condition of the property? Do you mean refurbishment, or a bit of cosmetic work, like decoration?

joecool77

I have a deposit of £4k. I appreciate this will limit me somewhat but am hopeful I will still be able to find a suitable product.

The property needs to be completely re-decorated and a new bathroom suite and kitchen fitted. With a little help from friends I am confident I could do this myself and working within the electrical wholesale industry I could get a lot of materials at reduced costs as well as probably reduced labour costs on anything I couldn't do myself making the overall cost reasonably low...

kingstreet

You'll need a deposit of at least 10% of the purchase price, plus an extra £1,200 or so for fees. If any of the work is considered essential by the surveyor carrying out the valuer's report for the lender, you may find a retention is held. This means you'll need even more cash to bridge the cost of the essential works until the lender releases the funds after proof is submitted.

Finally, does this flat appear incredibly cheap compared to others in the area? Is there only as short time left on the lease?

joecool77

My £4k does not include mortgage fees or solicitors fees, I have accounted for these separately.

How do you mean essential? Before it became habitable or structural?

There are very few flats like this in the area. I did a quick search for previous sale prices and there were none recently though a couple for similar values dating back 10 years or so. I believe the property may have been repossessed. The lease has 65 years left on it.

dimbo61

You wont be able to get a mortgage on a property unless it has a working kitchen and bathroom.
Now the main problem might well be the size of the deposit as you need money to put down as a deposit 10% at least and then the money to pay for the refurb ( new kitchen, bathroom, Rewire? central heating etc )

joecool77

It does have a working kitchen and bathroom, they are just not to my taste! I could probably find the money to fund the refurbishment, at a push maybe enough to also bridge the gap between my deposit and enough for 10% if need be. The property has upvc double glazing and gas central heating, not sure on the electrics but worse case if it needed a re-wire I could get this done at a vastly reduced cost.