Selling property part way through rennovation

Leafeysurrey

Hi everyone, hope you can help us as we've hit a brick wall.

We bought out property 27 years ago - three bedroom bungalow with approx 2 acres of garden. We've now decided to move to a smaller property and sell this one. With this in mind we started a total refurbishment of the property 2 years ago which was going well.

Unfortunately for the last 8 months it has been impossible to get people to come and do the outstanding work. They say it's just not financially worth it for them as house building companies are snapping them up for long periods of time on high rates because they can claim it back through expenses.

So, here is the question: should we sell the property now and take a loss and how much of a loss should we take or, should we stay in the property and do what we can and hope things improve.

We don't need to move right away but I don't know what to do for the best. Be very grateful for your suggestions and advice if you can spare them.

Thank you.

Working_Mum

Have you considered approaching a planning consultant and seeing how much you could sell the whole plot for if you had planning permission? That way there is no need to worry about finishing anything off - developers will handle that as part of a project.

Leafeysurrey

Hi Working Mum and thanks for the prompt reply.

I have tried that avenue but unfortunately the property is in a conservation area and has an Article 4 directive on it as we are under a flight path so developers weren't interested. I like your thinking though :beer:

Furts

Have you involved local estate agents? You need a valuation as the home is now, plus a valuation to reflect what you intend doing to get it completed. You know what sum you have allowed for completing the renovations, so a financial analysis becomes easy.


The other factor is a diy approach. What can you do that improves the home and makes it more attractive to buyers? Or alternatively, gets the outstanding work done and means the renovation is completed.

tonyh66

If you bought it 27 years ago, I doubt you will be making any loss on the property its probably worth several times what you paid for it.

Ectophile

Get the views of a local estate agent for advice. You need to balance the money you won't get by selling the property in a tatty state against the money that you would have spent doing it up.

Davesnave

We bought a tatty bungalow with 5 acres of land.

By being frugal anddoing much DIY, we've redesigned and renovated for circa £100k,but if we sold tomorrow, there wouldn't be a huge profit. For us it's all about the location. It was very hard finding a spot without any major down-sides, other than distance to cities/large towns.

You might be surprised by EAs valuation of the bungalow as it is. Many people like a project. Ultimately though, it's the site that will govern what people will see in it, and therefore what they'll pay.

Whatever happens, you won't have made a loss!

Gloomendoom

A 2 acre potential building plot in Surrey would be worth a fortune, regardless of the state of the house on it.

Developers would probably demolish it anyway.

Leafeysurrey

@Furts and Ectophile and Davesnave. Getting an estate agent sounds like the best way forward. I'll give them a call this week. Thank you.

@tonyh66. Yep the property is now worth 5x what we paid for it back then. Unfortunately everyone else's in the area has as well and we want to stay local.

@Gloomendoom. Unfortunately no as it is in the conservation area and all planning permission has been taken away. Have contacted a couple of developers and they aren't interested.


Thanks everyone - great to have others input on difficult problems as you end up just going round in circles