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Renovating a complete run-down flat

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  • lonestar1
    lonestar1 Posts: 560 Forumite
    is the property connected to mains gas ?
  • GDB2222 wrote: »
    It doesn't look too bad in the photos.

    Lower ground floor means it might need tanking. DPM has failed, possibly. I'd start off by getting a damp proofing firm round.

    There must be a reason why it's been empty two years. Do you know the history?

    There are builders who go round the auctions buying stuff like this. They have the experience and can renovate far more cheaply than you. This is their sort of property, so the fact they are not interested should be ringing lots of alarm bells.

    It is very hard to get any information. The flat has been purchased in 2008 for the same price at it is selling now. Apparently the person was not able to pay the mortgage anymore. Since at least 2013 no ground rent or service charge have been paid.

    I was also wondering if the current owner refused to pay ground rent and service charge because something is wrong with the property. I also understand that the property was 3 times in auction. The second time the purchase fell through and the last time there were no bids on it.

    On one side the flat really looks like a good investment, but on the other side I have lots of questions and doubts. Would it be possible to completely rely on a building survey?
  • lonestar1 wrote: »
    is the property connected to mains gas ?
    It doesn't look like, but will definitely check this. I am a first time buyer and therefor a little lost..., so thank you for giving me an idea of the questions I should be asking the estate agent
  • I would get a contractor to give you a quote then add it on to selling price + some more and see if its worth it. I guess you could easily be looking at 50k+ in London if everything needs replacing.


    No window in the bathroom and kitchen is very common in flats in london
  • ProDave
    ProDave Posts: 3,785 Forumite
    Seventh Anniversary 1,000 Posts Name Dropper Combo Breaker
    This just shows the rift in property prices.

    For the price it would cost you to buy that and do a very minimal refurbishment, you could have my 5 bedroom double garage detached house on 1/4 acre, ready to move into with no faults found on the home report.
  • hazyjo
    hazyjo Posts: 15,475 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 23 March 2017 at 12:40PM
    Careful you don't buy a money-pit! With all that work, have you checked how many years left on the lease? Is there an absent freeholder? Are there any 'flying freehold' parts?


    Even with all the work done, it may well be hard to sell or still unmortgageable as it appears to be over a shop, next to a dry cleaners, and on a main road.


    Jx
    PS Still not the best of areas either. Okay for BTL, but I'd be VERY picky with tenants... Are you planning on selling on or renting out?
    2024 wins: *must start comping again!*
  • GDB2222
    GDB2222 Posts: 26,221 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    It is very hard to get any information. The flat has been purchased in 2008 for the same price at it is selling now. Apparently the person was not able to pay the mortgage anymore. Since at least 2013 no ground rent or service charge have been paid.

    I was also wondering if the current owner refused to pay ground rent and service charge because something is wrong with the property. I also understand that the property was 3 times in auction. The second time the purchase fell through and the last time there were no bids on it.

    On one side the flat really looks like a good investment, but on the other side I have lots of questions and doubts. Would it be possible to completely rely on a building survey?

    Bear in mind that you'll be liable for a share of the costs of maintaining the entire building, so you need to know what's going on.

    The second time the purchase fell through. Somebody walked away, losing their deposit?

    There's clearly something seriously wrong. Don't buy it until you have found out what.
    No reliance should be placed on the above! Absolutely none, do you hear?
  • eddddy
    eddddy Posts: 17,993 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Being an auction property, many auctioneers expect offers to be on the same terms as an auction bid.

    i.e. If the offer is accepted, you are required to sign/exchange contracts immediately, with 28 days to complete.

    So you would normally get the legal pack checked by your solicitor (and pay their fee), before you make the offer.

    But if you want different terms, you can try negotiating with the auctioneers.

    If you (or a future buyer) need a mortgage - flats above shops are very difficult to mortgage - even in good condition. I'm not sure if this flat is behind or above the shop, but it may still be a problem.


    I was a bit nosey - so I had a look at the legal pack. There's a big chunk of overdue service charge that you'll have to pay. Strangely, it seems to include over £1000 towards the cost of the shutter on the shop - it seems ridiculous that the flat owner contributes to the shop shutter. So either it's a badly structured lease, or a freeholder who's trying it on big-time.
  • GDB2222
    GDB2222 Posts: 26,221 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    It's no longer an auction property. Local agents have it.
    No reliance should be placed on the above! Absolutely none, do you hear?
  • hazyjo wrote: »
    Careful you don't buy a money-pit! With all that work, have you checked how many years left on the lease? Is there an absent freeholder? Are there any 'flying freehold' parts?


    Even with all the work done, it may well be hard to sell or still unmortgageable as it appears to be over a shop, next to a dry cleaners, and on a main road.


    Jx
    The lease is fine, there are approximately 105 years remaining. Maybe the building itself is the problem?

    You are probably right: it will maybe be impossible to remortgage it. But then on the other side it is in zone 2 in London, so there should be cashbuyers interested in it too.

    I am getting more and more doubts
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