Buying house but not living in it?

Notmyrealname

Greyhorse wrote: »

The house needs lots of work and would not be livable straight away. We live at home so would be able to continue doing so. What would happen with regards to bills/council tax etc?? I would guess it would take at least a year for us to move in.

You would be able to get an exemption from council tax up to 12 months. After 12 months full council tax is due whether the property is habitable or not.

We are first time buyers, would a mortgage be difficult to get on this type of property? We could have a 10% deposit.

Basically, is the idea stupid and would we be better off putting money away to buy something we can just move into?


Thanks

It depends entirely on the projected valuation. Please please please get a full survey done. A proper structural one and not just a mortgage valuation one. It'll cost well over a grand but could be the best money you've ever spent. Houses like that tend to have hidden problems that can cost serious money to rectify.

namecheck

It does look (potentially) fantastic, I can see why you seem to have set your heart on it.

However, I have to agree with other posters that getting a mortgage will be a major hurdle. Though if you do manage to buy it, the fact that you do not need to live in it initially will be a bonus, although the security aspect could be an issue while it is unoccupied.

Dave_Ham

Great place, 95% sure you are unlikely to get a mortgage though given the office in the property.

Be interested how you get on - good luck

SuzieSue

If you do go for it, make sure your insurance company (not just the broker who arranges the insurance) knows that you will not be living it in for a while as there was a case on Rip off Britain the other day where a young couple used Countrywide to arrange their insurance and the insurance company wouldn't pay out after their property was damaged in a fire because they said that Countrywide didn't tell them that the property would not be lived in initially.

Fire_Fox

"A very rare opportunity to acquire a substantial detached building. The lodge is in need of some refitting, and priced accordingly, it provides spacious accommodation which, with modest investment, could be a superb family home (subject to the necessary planning). Situated adjacent to Princess Road and therefore well placed for access to local schools, bus services, town centre and seafront, this building has genuine potential ... We understand that a planning application has been approved to convert this property back to a residential dwelling ... The Planning Authority is Durham County Council and the Planning Reference Number is PL/5/2009/01. We understand that an application has been submitted for change of use back to a residential development. This has not been approved."

You cannot get a residential mortgage on this as it stands, it is not a house it is an office. If change of use goes through you would need to get a mortgage for a house which is not classed as habitable which would only be part of the market value of it as a habitable home. Research what 'habitable' means in mortgage terms. Lenders will be looking at what happens if you start the renovation and they have to repossess, what the value and saleability would be then. 10% deposit would not touch the sides, you need more plus finances for at least the first phase of the works to get the property back into a habitable state.

Notmyrealname

Fire_Fox wrote: »

You cannot get a residential mortgage on this as it stands, it is not a house it is an office.

Agreed. My friend bought a house which was a guest house. The mortgage company wouldn't complete until planning for change back to residential had gone through.

denmandaisy

Hi
I think it's confusing when a lot of people reply to your question, but there's a couple of things here I dont agree with.

1. It IS possible to get a mortgage on most type of properties. What is missing in the information you've been given to date is that you may need to go for an alternative type of mortgage - which to those who are not used to property 'fixing' might seem daunting. You are more likely to get a BTL mortgage or Building Loan on a property such as you advise - I do agree with the fact that you probably would not get a traditional residential mortgage in the condition you suggest. There are pros and cons to both alternatives - best you get hold of an IFA (important!) and they can talk you through it.

2) If you really want the property don't be deterred by advice by someone who hasn't experience in these type of mortgages - they aren't as common place and they are slightly more expensive (and the reaction you get from those who havent' experience in them is like an older parent who is nervous of something i.e. dont' do it...)- However..... as you aren't borrowing as much initially, they could be cheaper in the intitial term. My heads up would be that you would probably only keep the alternative mortgage until you had completed the works, then you would Re-mortgage to a more favourable rate. The LTV is normally much higher than for residential.

3) Please do, do, do get a structural...

4) Keep your mind open as to how to finance and rennovate. The structural will give you estimated cost which you should be at the high end of the costs..but better safe than sorry)

5) if you really want this house, plan, investigate and ask as many quesitons as possible - including the council - as there are many hidden costs as a novice property renovator such as council consultation costs, but please, dont' let that deter you and dont give up!

Enjoy!

ijrwe

I know nothing about the financial side of things, but that's an awesome building. If I lived in the area I'd grab that right now, cash! Wow.


*considers moving to Durham*

hazyjo

When was that line re planning added? If it's been up for that long and the application was submitted a year or more ago, they'd know by now! If it's a recent application, that might be different.

Worth running it through Property Bee (on firefox) to see what's been changed on the details and when.

Not sure I'd be holding out much hope either I'm afraid - not with just a 10% deposit.

Would be surprised if it doesn't end up being auctioned...

Good luck though... will keep fingers crossed! Let us know how you get on.

Jx

martindow

Change of use was approved according to Easington's web site

http://planning.easington.gov.uk/portal/servlets/ApplicationSearchServlet?PKID=117329