First time buyer.. Buying a house in need of full renovation

Emmalouise95

Hello, I am a first time buyer and have found a lovely house for sale. This is an empty house, in need of compeltle renovation. Central heating, front and back doors, windows, kitchen bathroom, plastering, flooring decorating and rewiring to name most. (this is before any structural surveys)
This house needs about 30,000 spending to make it livable and in par with other houses for sale in the street currently. (the asking price for this house is only 15,000 under that of a house in the same street that is in move in condition
I just am a bit unsure if the whole process.

I've had a mortgage in prinaple agreed and I'm aware I can make an offer and then if and when ones accepted contact my mortgage broker..

How much under the asking price is to low?
Can I make an offer to the estate agent (in writing of course)
Any tips and advice for this would be appreciated, complete novice here.

If it helps the property is empty and hasn't been on the market to long, it's been to auction and didn't sell and hasn't yet been reduced in price. I have a figure I do not want to go over (still under asking price) as with the work required that's all I think it's worth.

The work will be done gradually as I'm in no rush for it to be completed so job by job peice by peice. Any adive is appreciated. Thank you

tlc678910

Hi,
Offer a little below what you think it's worth so you leave room to negotiate up to what you think it is worth.

If it went to auction and didn't sell it may have a serious problem - you might want to see what you can find out before offering. Alternatively the seller may be unwilling to drop their asking price to what others think it's worth so the reserve was too high at auction and it didn't sell.

Does the house have a kitchen and bathroom at the moment? If not you can't usually get a mortgage against it.

Tlc

Davesnave

tlc678910 wrote: »

Does the house have a kitchen and bathroom at the moment? If not you can't usually get a mortgage against it.

^ This.

It's also a huge red flag if it went to auction and didn't sell. Auctions are where properties with problems go, and these can be legal issues, not just obvious physical shortcoings.

If you are a FTB, have you experience in the building trade and somewhere very cheap or rent free to live while this gradual renovation takes place? I've done one as a retired person, and it wasn't much fun, but it would have been far worse if I'd had to hold down a job at the same time!

SG27

If you think it needs £30k of work knock that up to £40k at least. (You WILL go over) Then take that off the value of nearby houses that are in good condition. This is gives your absolute max price then start below this and work back up if needed.

Emmalouise95

Thanks guys I think with the amount of work doing and house values in the street it's worth a max of 32000. In its current condition.

The property is leasehelold and not freehold so that'll be my first thing to look into, as nowhere does it say how longs left on the lease.

I have somewhere to stay, I'd not be living in it till it was done

AdrianC

Emmalouise95 wrote: »

I've had a mortgage in prinaple agreed and I'm aware I can make an offer and then if and when ones accepted contact my mortgage broker..

AiP simply means that the lender is happy, as a concept, to lend you personally that much based on your finances.

The full application then includes whether the property you're looking at is adequate security for the amount.

This place won't be. It just won't. Lenders hate wrecks, because they know they might end up trying to shift a wreck.

How much under the asking price is to low?

Only the vendor can tell you that.

Can I make an offer to the estate agent (in writing of course)

Of course.

eddddy

Emmalouise95 wrote: »

If it helps the property is empty and hasn't been on the market to long, it's been to auction and didn't sell and hasn't yet been reduced in price.

Was it a conventional auction or a conditional auction (''modern method of auction')?

If it went to conventional auction and didn't sell, it's very likely to be unmortgageable and might have major problems (or is overpriced).

Before making too many plans, phone the agent and ask if the property is likely to be mortgageable.


Edit to add...

Also, if you are making an offer after a conventional auction, you normally have to do so on auction terms. i.e. Exchange immediately and complete with 28 days - so a mortgage is pretty much out of the question.

megan12345

Thanks for sharing, this is really helpful to read!

Emmalouise95

The house does have a sink. Few cupboards and an oven but no worktops and complete kitchen. But a sink and does have a complete bathroom

Emmalouise95

Thank you, I do belive it's overpriced significantly but I am checking leasehold and how longs lwft on it. Also it does have a kitchen (sink and oven and a few cupboards) and complete bathroom

martindow

Can you find the auction listing? That might be a quick way to find more information and possibly the length of the lease remaining.