Problems with house survey- who would buy this house?

FTBAngst

So I had a survey done on a house i really wanted to buy (location and size (3bed) are great). House on the road sold in 2018 for 308, and this was priced at 278, settled on asking at 273.

Survey report said the house looks like an ex rental that has not been updated.

Things I knew were needed and budgeted for
- kitchen
- bathroom
- windows
- rewiring
- redecorating- stripping wallpaper; painting and new flooring

Survey recommends
- repairs to bowed roof
- replace guttering and piping
- timber fascia redecorating
- repairs or replace render front and back
- replace ceilings and floor tiles, both of which strongly presumed to contain asbestos.
(More concerning) - large cracks in loft and bedroom wall- suspect recent movement.

I have a meeting with the surveyor middle of next week. I’ve looked at costs of repairing (just vague, no quotes yet, wanted to speak to the surveyor first) and it’s run into the 85k mark. I initially offered £270 which was rejected and met at £273.

I understand the options are
1) get actual quotes for repairs and renegotiate
2) walk away

If I get quotes and the vendor refuses to drop the price (considering they refused to accept 3k lower), who is the likely buyer for a house like this? Especially with the indications of recent and significant structural movement (large crack both width and height) in the loft. I guess someone who doesn’t get a full survey might but anyone else....?

middleclassbutpoor

There are a couple of considerations for you to think about - look into further.

The price it is advertised for, how does this compare to similar properties which lack the refurbishment?

If the movement is recent - is this going to affect other properties nearby also? Or is there a reason for this - like a tree close by?

Without understanding these 2 things - its difficult to say what you should do. If the house in tip top condition would be worth £375k for example, you may see some room in negotiating and doing the work. But if pristine examples are £300k then you probably would walk away.

The vendor may be limited to what they can accept - i.e. negative/low equity so you need to consider that regardless of what the maths say to make it a worthwhile purchase, the vendor may not have the ability to sell at the price you need it at.

To me, if you are not experienced or skilled in refurbishments of property, this could easily become a money pit if you are not careful.

[Deleted User]

Also look at what the surveyor said for value - was it "given the condition the value is fair" or "this work will be needed to achieve the value you offered"

AnotherJoe

There might not be a likely buyer if the massive repair cost isn't reflected in the finished value. The vendors may simply be deluded about its state, or hope an equally deluded buyer comes along.

With £85k (lets say £100k to allow for overruns) to spend this house had better be worth £400k in pristine condition. Given a (presumably similar) house in the same road sold for only £25k more recently that would seem very unlikely unless it also was a "project".

Unless that is what the numbers look like and you have the stomach for massive building works over the next year or so, you should look elsewhere.

FTBAngst

Thanks. It’s hard to tell the house next door a year ago was also a project. The house on the other side was bought no for 320 three years and needed a complete refurb (spoke to the neighbour, checked the last sale price) . I find it hard to gauge what the houses ‘should be worth’ as not many houses have sold on that road/ in that area recently. A better condition but still need some work sold for 285 a few months ago , but that was a two bed and had a bus stop right outside the front door.

AdrianC

FTBAngst wrote: »

So I had a survey done on a house i really wanted to buy (location and size (3bed) are great). House on the road sold in 2018 for 308, and this was priced at 278, settled on asking at 273.

And what did the survey's valuation say?

Survey report said the house looks like an ex rental that has not been updated.

Whatever they mean by that.

Survey recommends
- repairs to bowed roof
- replace guttering and piping
- timber fascia redecorating
- repairs or replace render front and back
- replace ceilings and floor tiles, both of which strongly presumed to contain asbestos.

Situation normal, bit of backside-covering, bit of basic maintenance.

(More concerning) - large cracks in loft and bedroom wall- suspect recent movement.

Could be any of a million reasons. Photos?

Do the internal cracks tie with render cracks externally?

walwyn1978

I don’t think the maths works out. This is the exact kind of property developers get - unloved ex rental but decent location, do the necessary and sell it on. Unless the property has only been on a very short amount of time, it’s likely that one or more developer has looked at it run the numbers and decided no, presumably as there’s not enough in it for them.

I’d go back to negotiate with quote as a guide but you’d need to chip c50k off to minimise your own risk and I can’t see the owner agreeing. If they do fine but otherwise I’d look elsewhere.

Good luck.

FTBAngst

Thanks. I don’t have access to the photos right now to put them up.

I would like 50k off to mitigate the risk but like you said the vendor probably won’t agree. If developers have run the numbers and decided it’s not worth it, and the vendor won’t lower the price what normally happens to these houses? They don’t live there but the estate agent said they need the sale to fund their next purchase.

FTBAngst

AdrianC wrote: »

And what did the survey's valuation say?



Whatever they mean by that.



Situation normal, bit of backside-covering, bit of basic maintenance.



Could be any of a million reasons. Photos?

Do the internal cracks tie with render cracks externally?

I think he means it’s ex rental and not updated or properly maintained.

the internal cracks do not tie in with render cracks, they’re on the party walls. The report also commented on possible problems with how the neighbours pipes are draining and the house slants to that side.

silvercar

FTBAngst wrote: »

Thanks. I don’t have access to the photos right now to put them up.

I would like 50k off to mitigate the risk but like you said the vendor probably won’t agree. If developers have run the numbers and decided it’s not worth it, and the vendor won’t lower the price what normally happens to these houses? They don’t live there but the estate agent said they need the sale to fund their next purchase.

Two possible outcomes:

1. vendors decide to stay put
2. eventually the vendors accept that they need to lower the price to sell.

markin

It sounds like it could be a money pit, you need quotes to work with and as long as its a long term home it may work out, but can you get the extra '80K' to do all the work

Find out what they paid for it from zoopla or RM, they will never let it go for less than they paid.

Or the title £3
https://www.gov.uk/get-information-about-property-and-land/search-the-register