Have I made a mistake?

downshifted

Had an offer accepted on a 1930s detached which was converted a long time ago into 2 flats. Budgeted for refurbishment (kitchen, bathrooms, paint job etc) and knew we would have to work hard on the totally overgrown garden. Was hoping to make a 5% return (EA reckoned 6% - but that was without refurb costs and assuming rental at the higher end of the market.)

Had a full survey, which gave rise to lots of doubts - it seemed like the house would be a money pit. This is an investment - even if they came down in price, we would have to spend a lot of time (void period) and money and effort.

On Monday I tried to phone the EA to discuss the survey - not in, but they said he would call back. I sent an email as follows:

"Ignoring the many smaller issues (most of which we expected) the ones that give cause for real concern are:

• Cracking through the bricks on the corners, indicating movement. Front corner may be caused by drainage issues (drain runs over the garden) Further investigation by a structural engineer necessary - more generally wall ties may be failing. Enquire when the drain was moved and why, and what movement has been noted previously.
  

• General repointing necessary

• Roof needs further investigation - tiles have been replaced, some staining is obvious on roof, salt staining to internal timbers and damp readings may indicate nibs and or tiles are reaching the end of their life. Needs a roofing contractor to investigate - at the least, more ventilation required, at the worst, significant re-roofing
  

• Dampness in flat A needs investigating (significantly high readings) together with springiness in floors adjacent to damp areas

• Flue needs ventilation and sweeping, chimney should be reduced in height and capped

• Flat B has active woodworm

I didn't bother to mention the numerous minor issues such as outbuildings needing demolition as being unsafe (especially for letting) the boundary wall being dodgy, asbestos roofed garage, uneven patio areas (patches of concrete - eg a trip hazard) etc etc


Never got a call back. On Wednesday I told my solicitor to notify theirs we are pulling out. Today had an email from EA as follows:


"It was a just a quick email to ask if you knew how you wanted to continue with your purchase of (the property)


I have spoken to the vendor about a few points such as the roof and he has advised that some roof works were carried out only 6 months ago. He said that there are different colour tiles on the roof, some of which back date to the late 80’s. He also mentioned that the surveyor who came along advised that he would be critical to cover their own tracks, just in case something came up that was not put onto the survey, which a lot or surveyors are doing at the moment.

Obviously if price is the main problem because of the works required, please do let us know and we can try to renegotiate for you."



My gut feel is this is too much work and cost required to give a fair return for us - I don't see them coming down enough to make it worth while - I think I would be paying the price of what looks like long term "landlord neglect."


But I know that surveys are always cautious (have seen lots and only backed out once at this stage before) - am I taking it too much at face value?

kingstreet

You were hoping to make a 5% return?

So you're some kind of property professional?

Surveyors are natural "!!! coverers" making sure you are aware of everything that COULD be wrong, not necessarily what IS wrong.

You were doubtless advised to have a structural engineer's report and/or a wall-tie survey?

Obtain your specialist reports, or pull out now and avoid the cost of finding out what you already know.

Innys1

Obviously, the agent wants the sale to go through at any price (other than zero or negative!) so will say anything to convince you not to bale. So take the agent's response with a large bucket of salt.

Depends how much of a bargain the place is and whether you have alternatives. If you do have other options, I'd dump it, wear the survey cost (because that's what its for) and look at the alternatives.

If you don't have other options, I'd go back to the agent and ask them how much the vendor will drop the price to reflect the report. Always get THEM to make the first offer. If they/the agent, don't propose a new selling price, I'd walk. It's still a buyer's market (just) and there are always properties coming up for sale.

The above means playing hardball, which, I know, not everyone is prepared to do. Your choice.

phill99

If you have any doubt, then that is reason enough not to go ahead.

Money_Bunny

Don't have any expertise in property, BTLs or DIY. But as an objective observer I'd say sounds like a nightmare. I know surveyors cover themselves but there are a lot of issues here and odds are at least one is going to turn out to be costly.

downshifted

Thanks everyone. Your comments are helpful. I had pulled out and just had a wobble when I saw the EA email - I now know he also left a voicemail, saying much the same thing. If I were a builder I would probably proceed, but I'm not. It's an investment - and this one won't make the return - back to the adverts!

joolsybools

Trust your guts - sounds like you did the right thing

Davesnave

It's a BTL prospect and you don't love it, so why saddle yourself with an older property?

Some 30s houses are still fine, or have had major renewals, but I know my former house and many of my neighbours' properties were entering a period of issues, so I'm glad to be well-rid.

Quite often, those wide streets and long gardens were paid for by less than sturdy building techniques!