Will you avoid HMO area? Advice please

917700

Hi all

I have offer accepted on a house, but the surveyor found roof structural issues. Because the vendor stand firmly on their price, I started to look for something else and be prepared to pull out from the first house.

Last weekend, I found another ideal house. Similar size, similar price, better house condition and decoration. However, more than 60% properties are private rental in that area. Basically, many uni students lives in that area.

If I go ahead with the first house, I need to spend at least £7,500 on the roof replacement and structural reinstatement. Then, another £30,000 on refurbishment. There is no chain on this house, and I can complete approximately in Jan/Feb 

If I pull out and buy second house, it only requires £10,000 for new boiler and additional bathroom in the attic. The vendor is still living in here, but they said they can go to rental accommodation.

Can anyone provide some advice please?

thanks

[Deleted User]

917700 said:

Hi all

I have offer accepted on a house, but the surveyor found roof structural issues. Because the vendor stand firmly on their price, I started to look for something else and be prepared to pull out from the first house.

Last weekend, I found another ideal house. Similar size, similar price, better house condition and decoration. However, more than 60% properties are private rental in that area. Basically, many uni students lives in that area.

If I go ahead with the first house, I need to spend at least £7,500 on the roof replacement and structural reinstatement. Then, another £30,000 on refurbishment. There is no chain on this house, and I can complete approximately in Jan/Feb 

If I pull out and buy second house, it only requires £10,000 for new boiler and additional bathroom in the attic. The vendor is still living in here, but they said they can go to rental accommodation.

Can anyone provide some advice please?

thanks

I wouldn’t buy a home in a HMO majority area surrounded by a very transient population. 

How does the amount you offered for property 1 compare with the mortgage valuation? Was the property priced at a level to take into account the work needed? 

I think you probably need to keep looking. 

917700

Lover_of_Lycra said:

917700 said:

Hi all

I have offer accepted on a house, but the surveyor found roof structural issues. Because the vendor stand firmly on their price, I started to look for something else and be prepared to pull out from the first house.

Last weekend, I found another ideal house. Similar size, similar price, better house condition and decoration. However, more than 60% properties are private rental in that area. Basically, many uni students lives in that area.

If I go ahead with the first house, I need to spend at least £7,500 on the roof replacement and structural reinstatement. Then, another £30,000 on refurbishment. There is no chain on this house, and I can complete approximately in Jan/Feb 

If I pull out and buy second house, it only requires £10,000 for new boiler and additional bathroom in the attic. The vendor is still living in here, but they said they can go to rental accommodation.

Can anyone provide some advice please?

thanks

I wouldn’t buy a home in a HMO majority area surrounded by a very transient population. 

How does the amount you offered for property 1 compare with the mortgage valuation? Was the property priced at a level to take into account the work needed? 

I think you probably need to keep looking. 

Thanks for your advice. I didn’t have the mortgage valuation on first house yet, because my mortgage advisor suggested to get new agreed price first. The level 3 building survey didn’t include a valuation either, this made me feel very difficult to decide whether to go ahead or not. 

The market is quite in my city now, there is not many other choice. So I have to pick one from these two options.

The second house’s owner purchased it in February this year, but they decided to sell after they lived in here for 6 months. Their price is 4% higher than what they paid in February. From my own research, the house price in HMO area move very slowly, normally, the house price only increase 1% per year in this area. 

[Deleted User]

917700 said:

Lover_of_Lycra said:

917700 said:

Hi all

I have offer accepted on a house, but the surveyor found roof structural issues. Because the vendor stand firmly on their price, I started to look for something else and be prepared to pull out from the first house.

Last weekend, I found another ideal house. Similar size, similar price, better house condition and decoration. However, more than 60% properties are private rental in that area. Basically, many uni students lives in that area.

If I go ahead with the first house, I need to spend at least £7,500 on the roof replacement and structural reinstatement. Then, another £30,000 on refurbishment. There is no chain on this house, and I can complete approximately in Jan/Feb 

If I pull out and buy second house, it only requires £10,000 for new boiler and additional bathroom in the attic. The vendor is still living in here, but they said they can go to rental accommodation.

Can anyone provide some advice please?

thanks

I wouldn’t buy a home in a HMO majority area surrounded by a very transient population. 

How does the amount you offered for property 1 compare with the mortgage valuation? Was the property priced at a level to take into account the work needed? 

I think you probably need to keep looking. 

Thanks for your advice. I didn’t have the mortgage valuation on first house yet, because my mortgage advisor suggested to get new agreed price first. The level 3 building survey didn’t include a valuation either, this made me feel very difficult to decide whether to go ahead or not. 

The market is quite in my city now, there is not many other choice. So I have to pick one from these two options.

The second house’s owner purchased it in February this year, but they decided to sell after they lived in here for 6 months. Their price is 4% higher than what they paid in February. From my own research, the house price in HMO area move very slowly, normally, the house price only increase 1% per year in this area. 

You don't have to pick one of those two.  Waiting for something better is always an option as you could rent until that something better comes along.

The fact the owner of the house in the HMO area is selling after 6 months should be setting the alarm bells ringing.

A_Lert

If it's attached, probably getting noise trouble from student parties.

MaryNB

I've lived in HMOs with "professionals" and wouldn't want to live in an area with lots of them. So many people just don't look after places they rent. I definitely wouldn't buy in a student area. I lived on the edge on one until recently and while we didn't have to deal with house parties (except during the first lockdown) they'd always be yelling as they walked down the road on the way home from a night out midweek.

dimbo61

Good luck if you think you can complete in Jan/,Feb 2021..

MFWannabe

917700 said:

Hi all

I have offer accepted on a house, but the surveyor found roof structural issues. Because the vendor stand firmly on their price, I started to look for something else and be prepared to pull out from the first house.

Last weekend, I found another ideal house. Similar size, similar price, better house condition and decoration. However, more than 60% properties are private rental in that area. Basically, many uni students lives in that area.

If I go ahead with the first house, I need to spend at least £7,500 on the roof replacement and structural reinstatement. Then, another £30,000 on refurbishment. There is no chain on this house, and I can complete approximately in Jan/Feb 

If I pull out and buy second house, it only requires £10,000 for new boiler and additional bathroom in the attic. The vendor is still living in here, but they said they can go to rental accommodation.

Can anyone provide some advice please?

thanks

I would run a mile from house number 2, selling after 6 months is not a good sign answer there’s lots of vendors who say they will go into rental, some do and others don’t, could drag on for quite some time! 
House no.1, you should have had a valuation from mortgage company? How can you renegotiate the price if you don’t know what you’ve offered is too high or not? You say you need to spend almost 40k on this property, did you factor this in to your original offer price? 

youth_leader

I visited my daughter in Leeds many times and stayed in her various Uni HMO houses.  I wouldn't recommend living in a street with student HMO's, unbelievable things happened. 

917700

dimbo61 said:

Good luck if you think you can complete in Jan/,Feb 2021..

Hi, is there any particular reason you think is is not easy to complete in Jan/ Feb?

The local search pack will come back around 20th this month. The mortgage is very fast now, it will take about 1 week to 2 weeks

917700

MFWannabe said:

917700 said:

Hi all

I have offer accepted on a house, but the surveyor found roof structural issues. Because the vendor stand firmly on their price, I started to look for something else and be prepared to pull out from the first house.

Last weekend, I found another ideal house. Similar size, similar price, better house condition and decoration. However, more than 60% properties are private rental in that area. Basically, many uni students lives in that area.

If I go ahead with the first house, I need to spend at least £7,500 on the roof replacement and structural reinstatement. Then, another £30,000 on refurbishment. There is no chain on this house, and I can complete approximately in Jan/Feb 

If I pull out and buy second house, it only requires £10,000 for new boiler and additional bathroom in the attic. The vendor is still living in here, but they said they can go to rental accommodation.

Can anyone provide some advice please?

thanks

I would run a mile from house number 2, selling after 6 months is not a good sign answer there’s lots of vendors who say they will go into rental, some do and others don’t, could drag on for quite some time! 
House no.1, you should have had a valuation from mortgage company? How can you renegotiate the price if you don’t know what you’ve offered is too high or not? You say you need to spend almost 40k on this property, did you factor this in to your original offer price? 

Hi

I initially offered the vendor’s full asking price. However, during the viewing, they promised there is no structural issues. But the building survey and structural engineer picked up some issues need to be repaired urgently.

I did ask my mortgage broker the same question, why not wait for the lender valuation first, then re negotiate the price? He said this property is most likely to be down valued. if the vendor is not going move on the price, it’s no point to apply the mortgage now.