Need help with budgeting worse-case scenario

Debtslayer

If you currently live in a 4 bed and looking to move to a 4 bed (although detached) what are the gains space wise?
Are the gains worth the extra bills?
If you lost your job and that would put you into serious financial difficulties I would certainly reconsider if it's worth moving.
You have already made reference to ill health so is it potentially likely your ill health will affect your ability to work in the near future?

mortgagewannabe_2

Firstly let me thank everyone for their replies and helpful advice. Rather than reply to each individual, I hope your okay with a single long reply to everyone in general.....

I know some on here would say why are you going for this property and to go for something else, but it's because currently our 4 bed terrace has no other storage space, no garden, on a main-busy road with fast cars which is not safe for kids, whereas the new home is in the ideal location as it's close to my grandparent's home and my nan needs some care assistance. It also has a large garden which is great for family-time and it's in a quiet location and like-for-like, there is no other house in this area or surrounding areas that could give us so much.

It's not that I can't afford the property, but it's just the cost of running/maintenance I underestimated and need some assistance in working out my budget.

The new house is a 4 bedroom detached old period property (1910-1940?), but it also has a huge full ground floor size basement too which currently is not in use and from looking at it, I can clearly see that there is zero ceiling insulation, which might explain why the vendor has huge heating bills as all the cold draught must be going to the living rooms upstairs. Am I right????

It has partial double-glazing and some smaller windows would need to be possibily changed too. It has no loft/roof insulation, no cavity-wall insulation The boiler is similar to the picture below which must be in excess of 10yrs old, so most likely would need replacing.



Please accept my apologies regarding the water & utility bills. I have actually just guessed these based on what my friend living in a semi-detached house pays and added a little more on top. My friend currently pays £1800pa for gas/elec and £800 for water. I have contacted the water company today, but they are closed, so will speak to them tomorrow to find out how much the water rate costs for new property. I will also ask them about water meters too.

I will be taking out mortgage protection. I also have already set aside 7-9 months of savings for covering mortgage, but I just need to make sure that in the event of a loss of job, I can also pay my bills if I were to end up on benefits.....surely no harm in planning ahead for such eventualities?????

I can fix some of the things mentioned myself, such as installing floor/loft insulation, but surely this won't bring the bills down drastically, would it?

Lastly properties which have Yorkshire stone and have hard-to-treat cavities, are they safe to have the cavities filled? I've heard a lot of horror stories of people having severe condensation on their windows after having such treatment...so maybe someone can advise?

melstar11

Insulation really can make a huge difference - worth doing. Get specialist advice on the cavity wall insulation. You can get both loft and cavity wall insulation put in for free by the likes of Britsh Gas and you don't even need to be a customer of theirs. As for the bills, you have no idea how the vendor uses the heating so I wouldn't worry unduly, but take steps to reduce them. As for the boiler - if it's working okay it's not something you need to worry about straightaway and you can start a replacement fund for it. A new one is likely to be significantly more energy efficient.

[Deleted User]

I put insulation in a rental because my kids couldn't sleep in the bedrooms, it was so cold. It was a pain (had to clear out chimney removal rubble as well) but the effect was immediate. And so noticeable the kids were immediately able to sleep in their bedroom. I paid £1 a roll for the insulation from one of the utility companies.

I wonder if moving into a high maintenance house (needs things doing to it) is a good idea for you? You don't really seem to have the skills perhaps.

|A ten year old boiler is unlikely to need replacing immediately. Have you had it inspected? Why are you assuming this?

Water bills can be reasonable, but may require some work. You can replace toilet cysterns or use water hippos, get water tanks for work you need to do in the garden, even barrels will do lol.

You seem to be making this more difficult than it is. Which is why I am wondering if this is the right house for you.

Have you had a full survey done on the place to make sure there aren't any hidden nightmares. Probably worth its weight in gold.

Just because the present owner's bills are high, no reason yours have to be as high, except for council tax bills.

mortgagewannabe_2

@ melstar11 - Thank you. Insulation in lofts/floor is pretty much easy to do, which I'd be happy to do it myself, but cavity wall insulation is difficult for Yorkshire stone properties which have Hard-To-Treat cavities and I've not found a single company/organisation willing to do the cavity on my terraced house which also is the same stone-type. Do you know if there are any companies that can do this?

@ deannatrois - Wow! Where can I get £1 insulation from? I don't think my utility company does it. I think you've got it wrong as I have very good skills in DIY, but ultra-high bills is my biggest worry, something which you guys have now helped ease a little. Regarding the boiler, I didn't mean that it's broken and needs replacing, but I meant in running-cost terms as it's not very efficient...at least not as far as I know.

I have to say this deannatrois, I think you've hit the nail on the head as you've realised I'm a bit of a worrier/stress-head and tend to sound more dramatic that the situation is, but it's thanks to this type of worry that has helped me always build a rock-solid plan to reduce the likelihood of future problems.

Hence this is why I wanted someone to help me create two financial budget plans...one for whilst I'm working and the other for if I lost a job and ended up on benefits....a bit like banks when they do affordability stress tests in the event that mortgage rates go up to 7%.

getmore4less

I think you need to prioritizing and budget for some immediate improvements.

Loft is the obvious first step.
Cellar I would think carefully about destroying ventilation could be a very bad idea.

Some rooms maybe there is a dryline option.

Boilers are good for years, review the full system not just the boiler.

getmore4less

Is there a wood burner somewhere?

[Deleted User]

I haven't checked the links given but a quick google under 'cheap insulation' brought up this. The British Gas one said applicants don't have to be on benefits.

http://www.which.co.uk/energy/creating-an-energy-saving-home/guides/energy-grants/free-insulation-deals/

mortgagewannabe_2

Yes I've put £5000 aside for immediate improvements.

No there is no wood burner. I don't plan to seal up the vents in the cellar, I simply plan to insulate the cellar ceiling and will leaving the joists partially revealed, allowing air to still circulate under the house. This insulation is to stop draft pushing through the floorboards in the living rooms.

How do you dryline a victorian/edwardian type of room without losing it's original features? Is it expensive?

I'm happy to stick with the same boiler if it doesn't cost the earth to run, so how would I compared a F/G

Below are the ratings & pictures of the house...I've had to remove some of the photo details. Also please note that the two cellar pics are very similar to my property and have actually been taken from the internet for illustration purposes:-

IMAGES REMOVED!

mrsscattercushion

You've a few options here.

1) Improving the house itself. For example adding insulation (careful with insulation in the cellar. We did it but ended up being worried the joists were not getting enough air, so removed it. You could ensure the floorboards are properly sealed/consider carpet and rugs for extra warmth). If replastering, option of insulated plasterboard to help with the any cold walls. We live in an old Victorian terrace with no cavity or wall insulation and did consider this as an option. Investment in a new more efficient boiler, thermostatic valves on radiators to improve energy efficiency. Sealing any gaps around windows etc. Ventilation still really important, especially if warm air hits cold walls due to risks from condensation. Thick curtains at windows, door draught blockers etc ~ lots of cheap ideas out there to help work with what you've got.

2) Looking at your energy usage. Can you make cutbacks in how you use energy if you are worried about rising costs, for example in turning down the heating, cutting back on electricity used, heating only rooms in use etc. If there's me in the house during the day, I'll put on a couple of extra layers or a fleece over my legs rather than put the heating on. Or we'll have the woodburning stove on and not the whole house heating. I had to give up work temporarily due to ill health, and as the main bread-winner, we lost over £2.5k a month (just the 2 of us). So have had to be v savvy with the money we have. I made sure we had 2 year's worth of money to cover all major household bills before I quit though, as stress over money doesn't help my health! Can you make cutbacks in any other area to either cover these increases, or put more savings away if you are worried re health etc? Are you on the cheapest energy tariff ~ big savings can be made by swapping suppliers in utilities, insurance etc

These boards are full of ideas here, I use the Old Style money one a lot re tips/recipes etc and it has saved me a lot of over recent years.