Buying a house that needs work

Zola.

This might be a pretty silly question, but hopefully you can advise. We are on the lookout for our first home. Visited around 5 or 6 properties, bid on one we loved, it went to silly prices and we oped out.

So the search continues. Up to now we had been chasing a house where we could just move in and not have much decorating to do if it was well presented.

However, last night we visited a nice detached house that belonged to an old lady who was downsizing. Shes in her 70s so the interior is extremely dated. Virtually every room needs a revamp. Structurally the house is sound and looks lovely from the outside, just inside needs brought up to date.

After a bit of chatting with the agent he basically said we could get a good bit off the asking price, which would help offset decorating costs. We would be tempted if got a good deal because the house could be a good investment.

We have about 35k to use for a deposit and legal fees... BUT with all the decorating costs (I am guessing about 15-20k), where does that money come from in an instance like this?

Do you add it to the mortgage, get a loan from the bank or put less down for a deposit and decorate it as you can afford it? The bathroom, kitchen and living room need an urgent revamp.

fishpond

Do it as you can afford it, including the bathroom/kitchen & living room.

ognum

Zola. wrote: »

This might be a pretty silly question, but hopefully you can advise. We are on the lookout for our first home. Visited around 5 or 6 properties, bid on one we loved, it went to silly prices and we oped out.

So the search continues. Up to now we had been chasing a house where we could just move in and not have much decorating to do if it was well presented.

However, last night we visited a nice detached house that belonged to an old lady who was downsizing. Shes in her 70s so the interior is extremely dated. Virtually every room needs a revamp. Structurally the house is sound and looks lovely from the outside, just inside needs brought up to date.

After a bit of chatting with the agent he basically said we could get a good bit off the asking price, which would help offset decorating costs. We would be tempted if got a good deal because the house could be a good investment.

We have about 35k to use for a deposit and legal fees... BUT with all the decorating costs (I am guessing about 15-20k), where does that money come from in an instance like this?

Do you add it to the mortgage, get a loan from the bank or put less down for a deposit and decorate it as you can afford it? The bathroom, kitchen and living room need an urgent revamp.

If it was me and it has been many times I would buy and gradually do up as and when you have the funds. Today it is not unusual for first time buyers (or many buyers) to want the perfect home from day one but IMO the key to successful property owning is to buy in the best location you can afford.

It is also useful to live in a property before you decide what to do as your choices often change when you have lived somewhere.

So, go for it and be prepared to learn to decorate and do DIY!

eddddy

You can't add renovation costs to the mortgage as such - in fact it may be the opposite, the bank may retain part of the mortgage until work is done.

Your options will be constrained by the size of mortgage available to you, its LTV, the value of the house, etc

For example...

If the house's value is £100k
Say your mortgage has a max LTV of 80%
So you can get a mortgage up to £80k (subject to affordability)
So you pay £20k deposit and have £15k left for renovation


Alternatively...

If the house's value is £150k
Say your mortgage has a max LTV of 80%
So you can get a mortgage up to £120k (subject to affordability)
So you pay £30k deposit and have £5k left for renovation

arbrighton

Do the rooms function? I.e. can you wash yourself and cook a meal?
Then they don't *need* anything, they're not to your taste and you'd want to do something with them.

I'd be more concerned about the state of the electrics and potentially heating.

Foxy-Stoat_3

You dont need a loan to decorate a house.... you can buy 2 tins of paint for around £30, that will paint the walls to a double sized room, add another £10 for white paint for the ceiling and another £10 for the woodwork. If it hasn't been touched for years and its wall papered and you want to strip it back then you may have to do some filling or get the walls lined with lining paper or re-plastered, budget around £500 a room, including the ceiling if its artex'd and you want a flat ceiling.

If the bathroom and kitchen are useable then save up to get these done as and when you can afford to.

Depending on the price and deposit levels, you could hold on to £5000 for the most expensive room in the house, the kitchen. If you don't need to upgrade or re-wire the kitchen then you should be able to get that done for £5000 including appliances.

rosyw

ognum wrote: »

If it was me and it has been many times I would buy and gradually do up as and when you have the funds. Today it is not unusual for first time buyers (or many buyers) to want the perfect home from day one but IMO the key to successful property owning is to buy in the best location you can afford.

It is also useful to live in a property before you decide what to do as your choices often change when you have lived somewhere.

So, go for it and be prepared to learn to decorate and do DIY!

Couldn't agree more!

I've never bought a property that you could just move into, the first one many years ago was a Victorian terrace that hadn't been touched since it was built, didn't even have electricity, but it was fun doing the work, even my current home, which technically was a new build, needed work to finish it off. There is so much satisfaction when you can stand back and say "I did that"! So go for it

G_M

Buy a wallpaper stripper, some pant brushes and some brushes.

Do one room at a time.

Welcome to home ownership.

A new kitchen next year after saving up will be £3-5K, and new bathroom £1 - £2K

Out,_Vile_Jelly

"Needs work" = roof replacement, indoor plumbing required, complete rewiring etc.

Buying somewhere a bit dated just means some boring trips to Wickes and sloshing some paint around at the weekend.

I bought a house with knackered decor over a year ago, and have only recently had the bright orange 70s tiles replaced in the bathroom.

Mojisola

Out,_Vile_Jelly wrote: »

I bought a house with knackered decor over a year ago, and have only recently had the bright orange 70s tiles replaced in the bathroom.

We lived with the 'pink cloud' wallpaper in one bedroom for several years because it was the last room in the to-do list!

DigForVictory

Been there. My mortgage company wanted a full stuctural survey & retained the amount reckoned needed to rewire - a nasty surprise at the time, but a huge relief once done. (The main room's ring main had been a DIY job & wasn't earthed - ulp!)

Unless you were going to remove partition walls & revise room sizes/shapes, I'd get the wiring sorted first. Even £1K buys quite a lot of paint, if you get the trade stuff & not the Big Name/Brand. (Says she with a couple of drums of Leyland's finest awaiting me.)

Revamping with charity shop finds to change the look without massively damaging the budget is great fun & paint is blissfully cheap compared to most of the alternatives. It also makes "New Home" gifts So Much Easier.