buying a house in need of repair.

KiaraParker

Me and my other half have been to view a house today and we really like it. Its used to belong to an older couple who didnt maintain or update the property so it needs at least 10000 if not more spending on it which we dont mind. We are yet to have our meeting with the bank to properly apply for a mortgage but have one in principle. We are unsure if we will beable to borrow 80 if we only offer 65000 (if they accept) because if we cant have the extra 15000 to do the improvements we dont think we will beable to buy it. Has anyone else had any experience with this? This how needs rewiring. Central heating. The roof may need refelting and tiling. Needs a kitchen and possibly a wall knocking down. May need some replastering. So definately need the extra money. If anyone can help would be much appreciated. T.I.A xx

Hoploz

You're going to get all that done for 10k?
Wow.

GalaxyStar

Is it priced for the state it's in? What are done up houses on the street going for? We bought a house in the same position as the one you mention, not touched for 25 years, but minus the roof costs. On for 108k we got it for 100, but the houses on the street go for 130k so we got lucky. I presume it's on for 80? You'd be very lucky to get it for 65 if it is priced at the level for the work needing doing. You need to have a scout to see what neighbouring properties are selling for

GalaxyStar

also our new kitchen cost about 3k, rewiring was about 2.5k, multiple pots of paint, plasterer cost 400 to do a large bedroom ceiling and full kitchen plaster, our heating is ok apart from new boiler which would normally be 1k, plus 700 for radiators. So far thats rounded up to 8k. Plus costs for the paint and bits and pieces needed to buy not trade, and the costs the steamer has cost us in electric i'd guess we're up to 10k without even doing a roof

Procrastinator333

Our first house had not been touched for 30 years+. It needed an extension, re-wire, boiler, replastering, decorating, new bathroom, new kitchen, new drive, new garden.

Our second house - Same as above but without the extension. We are about 60% of the way through the work.

2 lessons that are pretty much universally true. 1) It will cost more, a lot more, than you anticipate. 2) It will take longer, a lot longer than you think.

I'm not saying don't do it, would definitely recommend it. But only if you get the property at the right price. So many people try to sell run down houses for similar prices to ones in decent condition as they too underestimate the cost of putting it all right.

You need to list out every job you think needs doing. Then research thoroughly how much they will all cost. Then add 50% to the total. Then add that to the cost of the house. Your total needs to be less than the cost of a similar house with the work already done.

Good luck!

Voyager2002

The mortgage will be for less than the purchase price, and if the house is in poor condition the lender will withold part of the loan until the house has been renovated. You might be able to get a bank loan for the work, but don't count on it.

Mardle

If it's empty have a look on the local council's website as they may offer Empty Homes grants.

We're in the process of buying an empty house that needs work doing on it and have been approved for a grant of up to £10k. We have a schedule of works from the council that have to be done for the grant and are in the process of getting quotes at the moment .We have to live in the house and if we sell within 10 years we have to repay the grant.

Kynthia

You can only get a mortgage for a percentage of whichever is lowest; the current value (according to the surveyor's valuation) or the purchase price.

patman99

I would say that you need to look at the costs of the priority work.

From your opening post, I would say the only priorities are roof and re-wire.

Once weather-tight and with safe electrics, the rest can wait until funds are available.

Of course, you could always obtain an EPC as this may well open up access to grants to install central heating (especcially if you have an elderly relative who could temporarily 'rent' the house and apply for the work to be done before moving back out to their own home).

Wall - you can do this yourself. If load-bearing, you will need to put in a steel or wood-lam (Better than steel as it is able to withstand fire better) beem.

DaftyDuck

Patman has it right. You need to work out what you have to do right now to secure the mortgage and protect your investment. That'd be the roof and probably the electrics (which are unbelievably messy to redo completely). Kitchen? If it's enough to secure a mortgage, it does for now. Wait to redesign rooms with wall removal; nothing worse than doing it, then having a friend say "oh, I'd have done xx..." and you realise you have been an idiot.

Do realise that, with a house that has had elderly folk in there, there may be a myriad of small faults ignored for years, either because of cash flow shortage, or because they liked it that way/couldn't be bothered to change it. All that can add up to a considerable extra cost and hassle.

It will always take longer, and cost more, than you expect, unless you are meticulous with your planning and pricing, so go in with your eyes wide open, and your wallet firmly shut (and leave it at home)!

princeofpounds

Having gone through this myself, I would say it is great to really overhaul a place, but you need to be so realistic.

It's expensive, or at least more expensive than you think. There are always things that you don't foresee, and costs that sneak up on you.

Unless DIY is you hobby or you are dedicating yourself to work on a project, you will not have nearly as much time to apply to the project as you think. If you are in employment, waiting on trades is a real pain, especially if they don't turn up and you have booked holiday.

Don't do it piecemeal, and don't do it in the wrong order. Trying to live around work is hard. Doing simple things like painting walls before more messy things is so tempting, but you end up with damage and a patched-up finish rather than a sharp finish. This was the mistake I made... I wouldn't do it again unless I knew I could start and finish the project in one go in the right order.

PS there is no way you will get all you say for 10k. I wouldn't be surprised if it's three times that depending on where you live.