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New house with help to buy or renovate old house?
Supersunnygirl
Posts: 12 Forumite
Hi Everyone,
I am a first time buyer in a bit of a pickle. We have been offered to buy our current rental home, which I think needs around 20k in renovations. The house is in the best part of a pretty deprived borough ( local lockdown was tough there's very little here) . The house is on a main road but is large and has wonderful walks on the door step. They have asked for about 82k for the house. I have a good job so I would take the mortgage over around 12 years to build up some equity for when we move on.
In the mean time my partner found a development of new builds in a neighbouring borough thats much much nicer. The area of the development is great but the houses smaller. We would also need to use help to buy to be able to afford one. I managed to get 14k knocked off the one house so now its about 215k . The mortgage would be more expensive but my salary goes up incrementally and my partner will finish her nurse training in a couple of years so our income will go up. I work in the NHS so my job is safe.
Neither house offers us much by way of longevity we could have one baby in either house but probably not two though for different reasons.
Any advice would be much appreciated.
I am a first time buyer in a bit of a pickle. We have been offered to buy our current rental home, which I think needs around 20k in renovations. The house is in the best part of a pretty deprived borough ( local lockdown was tough there's very little here) . The house is on a main road but is large and has wonderful walks on the door step. They have asked for about 82k for the house. I have a good job so I would take the mortgage over around 12 years to build up some equity for when we move on.
In the mean time my partner found a development of new builds in a neighbouring borough thats much much nicer. The area of the development is great but the houses smaller. We would also need to use help to buy to be able to afford one. I managed to get 14k knocked off the one house so now its about 215k . The mortgage would be more expensive but my salary goes up incrementally and my partner will finish her nurse training in a couple of years so our income will go up. I work in the NHS so my job is safe.
Neither house offers us much by way of longevity we could have one baby in either house but probably not two though for different reasons.
Any advice would be much appreciated.
0
Comments
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What would option 3 be for you?Your description doesn't make the new build sound worth over twice the price to me.But a banker, engaged at enormous expense,Had the whole of their cash in his care.
Lewis Carroll2 -
Do you like where you live?
Is 82k a good price?
Theres a huge cost difference between the two properties and you say neither is a long term house so me the cheaper house would be better; get the work done how you want it and then in a few years sell and move on if you want toMFW 2026 #5007/03/25: Mortgage: £67,000.00
Mortgage:
04/04/26: £33,500
07/03/26: £34,418.15
16/01/26: £56,794.25
02/01/26: £60,223.17
12/08/25: Mortgage: £62,500.00
12/06/25: Mortgage: £65,000.00
18/01/25: Mortgage: £68,500.14
27/12/24: Mortgage: £69,278.38
Savings: £20,0001 -
Hopefully you will have built up more capital
If you go for the new build and have to use help to buy then that’s the first 5 years you’re unlikely it will go up in value and also you’ll have the help to buy to pay backMFW 2026 #5007/03/25: Mortgage: £67,000.00
Mortgage:
04/04/26: £33,500
07/03/26: £34,418.15
16/01/26: £56,794.25
02/01/26: £60,223.17
12/08/25: Mortgage: £62,500.00
12/06/25: Mortgage: £65,000.00
18/01/25: Mortgage: £68,500.14
27/12/24: Mortgage: £69,278.38
Savings: £20,0001 -
I think its an area thing, we live in one of the most deprived areas in wales, where as the new build is in a very afluent area.
I'm not sure what option 3 would be ? We are limited by the new 15% deposit .
82k is a decent price, its just the quantity of work that needs doing. I'm slightly worried about encountering something big during the survey.
I don't like where I live currently very much but its not awful?
Would a more expensive house help us build more equity? Also I think it would be easier to sell the new build.0 -
So many questions !
When you say £20,000 to refurbish the house have you got that ?
Can you get a mortgage on the property in its current condition.
The landlord will need to get an EICR report done on the electrics !
What is the EPC for the property ?
Is this a bargain at £82,000 ?
Your Landlord will be happy to get rent from you till the day you buy the house.
Do you have a 15/20/25% deposit ?
I would take a normal 25 year mortgage and spend the first couple of years doing the work and then overpay each month once your partner is earning
PS we refurbished a two bed terraced house and the rewire was £3,500 alone.
No one in the house for 3/4 months and money available to pay for all the building works.1 -
The house is my grandmothers house, so my mother has offered to loan us the money to do the house up .
We have a 15% deposit on this house. Thank you for flagging the electrics to me , I hadnt thought of that!
Its a ver good price.0 -
Our current house has no parking and is on a main road , I'm just a little worried about selling it after we do it up and if there would be much profit to be made.
But then we wouldnt gain much financially from the new build either.0 -
Have a look on Rightmove to see what other properties have sold for; will give you an indication of how much it will be worth when you have done the workSupersunnygirl said:Our current house has no parking and is on a main road , I'm just a little worried about selling it after we do it up and if there would be much profit to be made.
But then we wouldnt gain much financially from the new build either.MFW 2026 #5007/03/25: Mortgage: £67,000.00
Mortgage:
04/04/26: £33,500
07/03/26: £34,418.15
16/01/26: £56,794.25
02/01/26: £60,223.17
12/08/25: Mortgage: £62,500.00
12/06/25: Mortgage: £65,000.00
18/01/25: Mortgage: £68,500.14
27/12/24: Mortgage: £69,278.38
Savings: £20,0000 -
How long have you lived there for?MFW 2026 #5007/03/25: Mortgage: £67,000.00
Mortgage:
04/04/26: £33,500
07/03/26: £34,418.15
16/01/26: £56,794.25
02/01/26: £60,223.17
12/08/25: Mortgage: £62,500.00
12/06/25: Mortgage: £65,000.00
18/01/25: Mortgage: £68,500.14
27/12/24: Mortgage: £69,278.38
Savings: £20,0000 -
We have lived here almost 3 years. I think most houses like this would sell for around 100k.0
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