Need help with budgeting worse-case scenario

getmore4less

If that is the house up for sale £265k in 2014 that's some drop in 2 years to £240.

why no floor plan that's usually standard these days

elverson

Have a look on Uswitch to get an estimate for the energy costs. You can put in the number of bedrooms and use the worst case settings i.e. poor insulation.

mortgagewannabe_2

@ deannatrois - thanks for the link.

@ mrsscattercushion -

1. If I did the insulation myself, I would follow a professional guide and use youtube videos and make sure I'm not blocking any ventilation to the floor/ceiling joists.

2. Here is my actual energy usage for my current 4 bed terraced property:-


@ getmore4less - Wow! you found it then. Yes thats the one. The price has come down because it needs some modernisation and insulating to make it more efficient, otherwise the price of properties in this street in more higher. We can live without modernising it for a few years, but our main concern at the moment is the running costs. If we can find a way to keep our bills down, then this is exactly the type of property we want.

@ elverson - I did try uswitch, but couldn't find the link where I can put the number of bedrooms, poor insulation...could you kindly provide me with that link?

From looking at the construction of the property, would you say it's possible to do cavity wall insulation for this??

Thank you.

mortgagewannabe_2

Sorry I also forgot to ask about SMI help. Currently the government helps people pay interest upto 3.12%, but how would it work if in a few years time, the interest rates are 5%??

Indout96

getmore4less wrote: »

If that is the house up for sale £265k in 2014 that's some drop in 2 years to £240.

why no floor plan that's usually standard these days

Its up north and looking at the type of stone I would guess not that far from me so price drop is not that excessive, our own house has lost 30% of its value since 2008. The recovery never happened up here :-(


OP - not wanting to look on the black side but you say you will take out loss of earnings insurance to cover the mortgage but also mention ill health - please make sure your insurance will cover you and know about the ill health or you are just throwing that money away.

getmore4less

Not been relisted that long any idea how motivated the sellers are.
May be room to offer even lower.

On the quick look plenty of space and potential but I would want to keep back a fare bit to kick start the updating.

mortgagewannabe_2

@ indout96 - Thanks... I will make sure that I mention everything to make sure they don't void the insurance.

@ getmore4less - I can't say much regarding the price, but what I can say is that we're getting it for less than the asking price.

Also I would be most grateful if you could kindly help me with my previous questions. Thanks

Out,_Vile_Jelly

mortgagewannabe wrote: »

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.

£800 for water? Do they have an Olympic sized pool in the garden and run a car-washing business on their drive?

Research cavity insulation carefully; many older properties are designed so that the wall cavities allow the building to "breathe" and stuffing them full of foam can cause problems.

Are you the type of family that walks around in t-shirts with the heating on all day? If you can get used to putting a jumper rather than the heating on that saves a lot.

getmore4less

The price will be public soon enough if you buy it.

Have you walked down the street and asked what others have done to insulate their homes?

had another look

I see the 4th bedroom is in the roof space insulating that may not be that straightforward(were these 3beds extended into lofts?)

Is there access through the cellar from the garage or other access to the outside from that level?

No 27 looks the similar and sold for £248 2014.

Lining would not be that cheap and some of those rooms are not easy shapes to work with and loads of windows.
There may be external option on the side walls fairly flat elevations to work with again not cheap.

Upsidedown_Bear

mortgagewannabe wrote: »

Sorry I also forgot to ask about SMI help. Currently the government helps people pay interest upto 3.12%, but how would it work if in a few years time, the interest rates are 5%??

Interest rates used to calculate SMI payments

SMI is paid at the level of the Bank of England's published Average Mortgage Rate (currently 3.13%). It is only be adjusted in future when the published average mortgage rate differs by 0.5% or more.
The rate of interest you actually pay on your mortgage is not taken into account. If you pay a lower interest rate than the average mortgage rate, you may be able to repay some of the capital you owe. If the mortgage rate you pay is higher, you may find yourself in mortgage arrears.

Info taken from here:
http://england.shelter.org.uk/get_advice/repossession/mortgage_arrears/support_for_mortgage_interest

Also some info from DWP here:
https://www.gov.uk/support-for-mortgage-interest/overview