Flat renovation - help a complete novice out!

rlkk

Newbie here so I hope I’m posting in the right place.

I’m a first time buyer and have completely fallen in love with a derelict one-bed ground floor (not basement) flat. It’s been empty for 10+ years and needs A LOT doing to it:

- Flat roof on the extension needs replacing (it’s got holes in and a small tree growing out of it!), and extension walls need repairing and/or rebuilding;
- New windows throughout;
- New boiler and radiators;
- New kitchen and bathroom;
- Replastering throughout;
- New electrics throughout;
- New front door (old one doesn’t shut properly);
- Possible damp proofing (not sure whether the damp is just a result of it being empty and leaking for so long or something more sinister);
- Some floor joists might need replacing (haven’t seen under the floorboards yet);
- Maybe more I haven’t thought of!

I’m also keen to move the kitchen into the open plan living/dining room to create a second bedroom where the kitchen is at the moment, so I’ll need new plumbing for that as well. Would like to knock some non-structural internal walls down too. Oh, and it’s got a 67 year lease, which may cost 25k to extend. Not cheap!

Just looking for advice really. Is it too risky? I’ve had a builder round who quoted 45k plus VAT - is this in the right ballpark? (I am in the very expensive South East.) Is 25k unreasonable for the lease extension, and if so what can I do about it? How difficult will it be to get permission to convert into a two-bed? Would I need planning permission, or just building regs approval? What about freeholder consent? Also, what work can I do myself? I really want to get stuck in, but am a complete novice. Of the work that needs doing, what could plausibly be done by an unskilled person like me? How else could I save money on the renovation? I would source as much as possible second hand - any tips about how best to do this?

I know it would be simpler to buy something habitable instead, but nothing else in my budget appeals as much as this flat. Someone please talk some sense into me!

G_M

What does the £45K + VAT include/exclude?

I recently did a similar excercise with a builder, but he excluded the new kitchen and bathroom, just quoted to move the plumbing and leave the 'tails' in place (drains, stopped-up pipes etc).

The rationale was that I might choose to install a £2000 B&Q kitchen, or spend £25,000 on a marble-topped one with bells and whistles!

Similarly, you can put a new cheap felt roof on for £2000, or pay 4 times as much for top quality modern alternative to felt which will last 4 times as long. What was he quoting for and what do you want?



Either way I would budget significantly more than £45K.......

rlkk

Thanks for your reply

The builder’s quote was for:

- Drainage for kitchen;
- Stripping out old kitchen, bathroom and rear roof;
- Rebuilding rear roof;
- Replastering back bedroom, bathroom, corridor;
- Replace/refurbish windows and doors;
- New kitchen and bathroom;
- Plumbing inc boiler;
- Electrics;
- Decoration.

So it doesn’t include things we’re not sure about like the floor joists (the estate agent wouldn’t let him take a floorboard up). I think I’ll get someone else round for a second opinion before making any decisions.

Nobbie1967

For a first time buyer with little experience I'd say this was a bit too risky. Do you need a mortgage to buy it? You may struggle unless you have a big deposit, or need to go to a specialist lender.

It's the sort of property that I'd expect a builder to snap up, the fact they haven't suggests it may be overpriced and they're waiting for an inexperienced FTB to come along...

Still, if you like a challenge, this certainly sounds like one:)

rlkk

Thanks for your wise words, you are probably right I am in the very fortunate position of being able to borrow money from my parents, so I won’t need a mortgage, but even so, it’s a huge risk for someone with no useful skills... *Googles construction apprenticeships*

AFF8879

I would check how long it’s been on the market for. If it’s been on longer than a few months that would worry me because as Nobbie says, good redevelopment opportunities in the south east tend to get snapped up by developers almost immediately, often regardless of market conditions.

Secondly you need to make sure you have a healthy contingency (I would say at least £30k) in addition to the £45k budgeted as these sorts of projects have a tendency to be an absolute money pit when you don’t know what you are doing. And, whilst I’m sure your builder is an honest chap unfortunately there are some who aren’t, and instantly pick up on / take advantage of inexperience (especially if you talk to them like you do on this thread!) and add on needless costs throughout the project.

Personally as a FTB I would leverage my cash buyer status to get a better price on an existing, mortgageable property without the worry of needing to spend thousands before I could even move in. Add to that leases cannot be extended until you have owned the property for 2 years, during which time the cost of extension will rise materially....

HampshireH

Just out of interest how much is it on the market for and are you offering?

Also who has the freehold..... I ask as this derelict flat would suggest they arent that proactive or worried about overall building maintenance/security.

00ec25

"Fallen in love" suggests this is somewhere you intend to live in as your home?

on that basis some of the work you list involves the fabric of the building. That is not a job for a leaseholder, that is the freeholder's responsibility, so what is it you actually are buying with your parents money?

it sounds like the work you can do is limited to using a paintbrush and staying away from builders who will see you a mile off when it comes to billing you.

rlkk

Thanks for your replies, appreciate the honest feedback.

It was supposedly valued by a surveyor last year at £70,000 but has been reduced a few times and is now on the market for £55,000.

Freehold is owned by a company in London. Have contacted them but no reply as of yet.

It’s in one of the, erm, not so desirable coastal parts of the south east where demand is fairly low, which may or may not explain why it hasn’t been snapped up by a builder.

chunkytfg

How long is the lease would be my first question? If it's really not very long i.e. under 60 years expect to pay a small fortune just to get an extension

rlkk

Lease is 67 years. Freeholder has apparently quoted £25,000 for an extension but I haven’t seen written proof of this yet. Does that figure sound reasonable? The estate agent seemed to think it was pretty high, but I appreciate they may just be telling me what I want to hear.