Homebuyers Report Suggests 150k of work needed on house

BexLondon

Hi Everyone,

My partner and I are first-time buyers and were really happy to have an offer accepted on a house recently. However, when we got the results of the homebuyers report back it's listed a whole catalogue of issues with the house.

We're very aware that surveyors cover their back with worst-case scenario and we're aware it's an older house (1930s), however to give some context, our offer is £100k more than the last (almost identical) house that sold on the road only 9 months ago, but we put this down to the fact that this house seemed more modernized and house prices have significantly gone up during this time (we're talking Zone 5 London for reference).

Yet the report made it clear that, while the property looked modernized from the outside, the property has not been well maintained/updated. There are some serious structural issues which we're investigated first (possible subsidence and other unsupported building work) however, if this is given the all clear, we've also been told the plaster work is at the end of its lifetime, the electrics and guttering need replacing, the roof needs water-proofing, the garage has asbestos (which we wanted to knock down), the timber is rotted, fences are rotted and fallen over in places and much more - the surveyor has estimate repairs as costing almost £150k and the valuation said the asking price is valid but only if the repairs are carried out.

Now, although we're assuming this is worst-case scenario, my question is should we be able to negotiate significantly on price in this situation? I've asked around and no one I know has had quite such a high cost of repairs quoted which makes me feel quite nervous. Should we walk away if the vendor won't negotiate?

More context: neither us or the vendor is in a chain, the property's currently vacant and the seller's keen to sell quickly. They had 4 offers of the same amount (10k over asking price) as ours but all the others were in a chain.

This is all new to us so any advise or experiences would be really welcome!

Thanks,

Bex

patricia..xx

That sounds an awful lot of work. To put it in context, our recent survey estimates £2-3k of work in the next 3 years. This is on a Victorian terrace, so I don't think it is typical just because the house is older.

It sounds barely liveable if the roof needs immediate replacement.

Last time we moved we looked round loads of "property developed" type ones. On the face of it a white bathroom, new plastering and paint. But then the light fittings were those ancient string type ones, plug sockets like nothing I have seen, it could well be a botch job. I would recommend speaking to the surveyor, they may give you a straight answer off the record not in writing

fart

So you offered £100k more than similar properties are going for, yet need to spend £150k on it? So you're looking at paying a quarter of a million quid more than you could possibly get a house for nearby?

Radiantsoul

Project managing £150k of work is going to be a lot of hassle. Personally I would walk away.
It would almost be cheaper to knock the house down and start again.

sulphate

We just bought a victorian terrace as well and don't need to do nearly as much as that!

Definitely try to negotiate and walk away if vendor is unwilling. Unless you actually have and are willing to spend that amount of money on your first house?

You may have no choice but to do this because once your mortgage lender sees the valuation they may put a retention on the mortgage/refuse to lend as much as you want until the necessary repairs are carried out.

hazyjo

Were you looking for a 'project' of that size?!

Doesn't sound like you anticipated it'd be that much work.

Compare against sold prices of similar properties which don't need as much work.

Sounds extremely overpriced to me if it can be £150k under what you've offered. Presuming you have at least £300k to spend, I can assure you there are far better (substantial options) options in and around zone 5!!

Jx

curedham

That's sounds a lot of work - even for 1930's house.

phoebe1989seb

It sounds rather over-exaggerated to me.....

Admittedly it was over 10 years ago, but we bought a 3500 sq ft detached Victorian house that was currently divided into four flats and had been extremely poorly maintained for the past 50+ years. Our surveyor said a lot of similar things to yours - roof in need of replacement (it was original slate in very poor, holey condition - and clearly visible) all new wiring, new GCH, re-plastering, damp treatment, wall ties, re-pointing front & back etc etc - and that was without the need to rip out four kitchens and bathrooms and replace. There was also a very damp cellar and corrugated metal outbuilding to be dealt with.

Initially the mortgage co put a retention on which nearly scuppered the purchase, but my dad stepped in and helped us out with a large cash injection. Now I'm not sure what the house was valued at back then by the lender, but I do know that despite being considered uninhabitable by virtually everyone that saw the place, we managed to buy it, live in it (with a young child) and do the work at our leisure over the next five years. We re-roofed, re-plastered all internal walls, had new wiring and new GCH, damp treatment (waste of money IMHO) etc etc ad infinitum and re-mortgaged along the way to obtain more cash for the works (something you couldn't expect to do now I guess) - which I would estimate cost around £80k.......including kitting out two bathrooms and large (25') kitchen with high-end fittings.

Even 10 years on, £150k for that level of work on a 1930s house sounds way over the top to me - unless it's a huge house or literally falling down

If it really does need that level of work (and you can afford/want to take it on) you need to consider if the end will justify the means. If nearby houses are selling for similar sums without needing to spend a fortune on restorative works, then maybe this isn't the house for you......

I_have_spoken

Walk away, it's a money pit.

the property looked modernized from the outside,

Sounds like the seller knows it's a lemon and was hoping a mug punter would buy it without doing proper checks.

mail2z

Possibly the surveyor is over estimating the work required, looks like you paid him too much?

Get a building contractor hopefully through references who can estimate the work required he will be able to give you a realistic quote on the work.

100K over and lot of work, are you sure you are not over paying, it is easy to get carried away in the bidding wars and EA's help this process too earnestly!! , possibly the surveyor is hinting that the house is a money pit in which case evaluate if the house if worth that much to you. Use your head rather than heart to value it.