Seeking advice about steel structure 'non standard' build

Lily78_2

Hello, 
I have viewed a terraced house in need of much work recently (really, not just cosmetic). There is potential to make it 'your own' and add value. Walls are partition so potential to redesign as house needs gutting and everything nearly redone (walls/electricity/ eventually plumbing + refurbishment).
However, the agent told made a point to tell me about the fact this was a non-standard build (= steel structure) and that this could cause some issues re mortgage.
Most houses in that area have been built in 1920s and are steel-framed. Clearly, those houses have changed owners and sold in the past. Though a lot of them have been turned into HMO because of proximity with university (council not giving more permission atm). 
I am a first time buyer and I am looking myself (ie not investment to let). I find it difficult to judge what would be my chances to sell it and cover at least my costs, if I buy this property (Cost: offers over £160k for a small 3-bed terraced + cost of work needed - est £20-25K?). 
Has anyone got knowledge about getting a mortgage and eventually selling a 'non-standard' build like this one? 
Thanks
Lily

dimbo61

Please walk away and look for something else.
Complete refurb of normal terraced 3 bed house is more like £40/50,000 unless you have family in the trades.
Steel framed will fail survey and No mortgage from most lenders.
One for a builder/developer with deep pockets

GDB2222

I agree with Dimbo that the refurb cost will be far more than £25k unless you do it all yourself. It sounds as though, even if it were normal construction, you might not be able to mortgage it, because of the condition.

There are loads of articles on the www about mortgaging steel framed houses. Some types are easier than others, but you did not mention which type this is.

K_S

@lily78_2 There are two issues with regard to a mortgage - the condition of the house (perhaps uninhabitable?) and the steel-frame.

Setting aside the condition of the house - unless you are ready to incur large sunk-costs such as structral survey (for the lender to gain assurance over condition of the steel frame) and/or willing to put in a high-deposit along with specialist interest rates, there is very little chance of purchasing it with a mortgage.

If the construction is fairly recent (mid 1980s onwards) there may be more palatable options. If it's even newer, 2000+ onwards, most lenders come into the picture.

In any case, you will require at least a 20-25%+ deposit.

Lily78_2

dimbo61 said:

Please walk away and look for something else.
Complete refurb of normal terraced 3 bed house is more like £40/50,000 unless you have family in the trades.
Steel framed will fail survey and No mortgage from most lenders.
One for a builder/developer with deep pockets

Thanks for this. 
The current owner had started to strip the house so 'thankfully' there are already holes where they investigated the steel structure. But I know if I was to go ahead I would have to do the full building survey even just because lenders would want to see it anyway. And one never know indeed... 

Lily78_2

GDB2222 said:

I agree with Dimbo that the refurb cost will be far more than £25k unless you do it all yourself. It sounds as though, even if it were normal construction, you might not be able to mortgage it, because of the condition.

There are loads of articles on the www about mortgaging steel framed houses. Some types are easier than others, but you did not mention which type this is.

Thanks. The current owner had started to strip it and redo some bits and someone is currently living in it... though it is by no mean what I call 'living standard', I'd hoped that'd help.. but maybe not... 
No I didn't know there were different types of steel frame building type! I have just looked it up - definitely need to find out. I'll ask the EA. The owner may know. Or the council. 
Though seem it might be better to walk away... 

Lily78_2

K_S said:

@lily78_2 There are two issues with regard to a mortgage - the condition of the house (perhaps uninhabitable?) and the steel-frame.

Setting aside the condition of the house - unless you are ready to incur large sunk-costs such as structral survey (for the lender to gain assurance over condition of the steel frame) and/or willing to put in a high-deposit along with specialist interest rates, there is very little chance of purchasing it with a mortgage.

If the construction is fairly recent (mid 1980s onwards) there may be more palatable options. If it's even newer, 2000+ onwards, most lenders come into the picture.

In any case, you will require at least a 20-25%+ deposit.

Thanks for your reply. 
Thanks. I am told these houses were built in 1920s. But not sure which 'type'. Yes, structural survey will be needed regardless as you say. And I am bringing 20-25% deposit anyway.
But from the other advises, it seems cost of work could be double what I thought... not to mention insurance and issue at resell
... 

GDB2222

The sellers may well be asking £160k, but it may not be worth that. Do you have a Rightmove linky?

Lily78_2

GDB2222 said:

The sellers may well be asking £160k, but it may not be worth that. Do you have a Rightmove linky?

Hi, sorry not sure why I did not get notifications of your reply. 
Yes, my thoughts as well... though they ask for offers over £160k... 
here is the link https://www.rightmove.co.uk/properties/76790196#/