Potentially weird situation (auction buyer)?

apricotjam

My family member and his siblings have just inherited a small terraced house from their dad in a low income area, which they will be selling in a few months. The house next door to it has suffered a lot of bad luck over the years. It was initially an illegal HMO, then a cannabis farm for a further 4 years.
It went up for auction this year, in a completely gutted, derelict state.
I put this on another forum but didn't find many replies, but a few people estimated it might cost a further 100K to fix it up.
It sold for 70K in Feb. Our family members and their neighbours expected a 'flipper' to fix it up and sell it. Well, apparently not.

This is what we have managed to find out so far, and we think it is a little unusual, so would love some input: A man, with what appears to be a young family is the new owner. He appeared daily, usually alone or with one other man for a few weeks. No surveyor, builders or workmen have been in there. What we think are his wife and little kids have stood outside on occasion looking happy and excited. They are possibly new to the UK and don't speak a lot of English. We've chatted snd they seem friendly. When we asked if he was moving in with his family he took some time to reply 'yes' but seemed to shake his head. 

Since purchase 2 months ago, no one else has been in there: his friend spent a week hacking at the walls then stopped. On several occasions he has repeatedly told us that the house is a 'terrible mess' that there are 'only 2 walls' and that he is confused. For a while we were worried that he had been scammed, or had made a bad investment. The family do not look wealthy and the man working on the house does not have his own vehicle. The garden is still strewn with old white goods and rubbish which the drug farm left. There are holes in chimney breasts, no upstairs floors and part of the attic has fallen in. This needs serious work that isn't for the feint hearted. 

All went quiet for a week or so according to the other neighbours, and we presumed he had lost his holding fee and given up. Then he turned back up with his friend today, hammered and drilled for less than 5 minutes and left. Since not speaking English we couldn't hear any dialogue but it sounded stressed.

What do you think is going on here? When we were there last we offered him a spare key as he hadn't been given a full set so couldn't access the back entry. He was non committal when we offered him our spare gate key. He said he wanted to put a skip at the back weeks ago but nothing has materialised, we don't even think he has a key to the gate yet. Without prying on what might be a delicate situation, we don't know what to make of it.

Wouldn't anyone else have just sold it on or backed out by now? The other neighbours are concerned that if they don't hire professionals it might compromise party walls, etc. If anyone has had experience with anything like this I would love to know. Is it possible this man is going to try to do it all with limited help? He is not a builder and doesn't look remotely confident.

tacpot12

It's very difficult to be sure what is going on. If you know what language he speaks, you might pop a note through his door offering to help. Ultimately, you will have to point out that if he damages your property by not being compentent, then he will end up losing the house as you will have to sue him for the cost of repairing your own home, but the time to do this is when he understands that you want to help avoid this suitation.

You can offer him help in lots of different forms; advice on matters such as party wall acts, building control, and planning permission (without building control sign off, his property will not be saleable in the future, which will affect his inheritance to his children), help to find tradespeople, help to understand how his house is built (he may not be familiar with UK building methods or terminology), how to sort out problems with meters and energy suppliers, how to get rubbish disposed of (skips/regular refuse collection by the local council), how to pay council tax, etc.  You can refer him to Citizens Advice for some issues, but practical stuff is much easier done over the garden fence. It will also get your relationship as neighbours of to a great start if you help them sort out this mess.

BTW: Shaking one's head from side to side is the equivalent of nodding in some cultures.

RHemmings

I'm not saying that the previous should not be done - I recommend following the advice of @tacpot12. However, I wonder if the person who has bought this house is unable to afford bringing in proper tradespeople in to do the necessary work, and is forced to do it themselves (and unable to). Not saying that this is even likely to be the case, but it has crossed my mind. 

This could easily be a very difficult situation, and being tactful and careful about how things are said may well be important for achieving the best result for everyone. If a suitable person can be found to act as a translator, then that may be very helpful. And, a good first step. 

ProDave

It sounds more like someone bought it unseen and is now shocked at how much needs doing, and trying to work out what to do.

RAS

Try Google translate? If you ask him which language he speaks, then type some pleasantries first. 

I'd start with the basics like, would you like keys? What's your plans?

ThisIsWeird

How little are the 'little kids'? I wonder if their English is any better?

Hopefully the man will have seen that you are friendly and approachable, so that anything you say will be for the 'right' reasons. But I suspect it'll soon become important for you - or someone - to communicate with them that there are tight regs and responsibilities for them to follow if they ain't going to get in a lot of bother.

A helpful first point to get across could be, "Do you have house insurance?!" Explain why - not just to protect their investment, but for any 3rd party liability should summat go wrong. And then see if you can work out what their renovation plans are, and broach the 'Building Regs' part. Tell them the UK is very tight on what you can, and cannot, just do, including things like electricals, and they likely won't be able to sell it on without this - and may have the LA taking action against them.

Ultimately, if you have genuine concerns about what is taking place inside, you should do the right thing yourself, and let the LA know.

Bookworm105

so the person purchased an un mortgageable property at auction for 70k and probably has insufficient cash left to start the works required. 

as you say you will be selling your own property "in a few months time" the financial standing or rate of progress of your neighbour is hardly a pressing concern of yours?
Yes next door's appearance may make a prospective purchaser of yours ask some questions, or it may not. 

no one on an internet forum can give you the sort of speculative answer you appear to want to hear 

Albermarle

 just inherited a small terraced house from their dad in a low income area, 

The house next door to it has suffered a lot of bad luck over the years. 
It went up for auction this year, in a completely gutted, derelict state.

but a few people estimated it might cost a further 100K to fix it up.
It sold for 70K in Feb. 

From the first statement, one could guess that a small terraced house in good condition in a low income area in the North would sell for around £150K ( more in the South of course)
£100K seems a lot to renovate a small terrace even in this state, but even if it cost £70K. Then the owner would have to put in a lot of effort over a long period with no reward.
So most likely scenario is that they have paid too much, probably without seeing it, or have just misunderstood the whole process.
If it was in the South ( even in a low income area) the finances would be more workable.

apricotjam

Thank you everyone.

And in reply to this: no one on an internet forum can give you the sort of speculative answer you appear to want to hear 

What I want to hear is in my opening post - has anyone experienced anything like this? Just in case you missed it   

user1977

apricotjam said:

Thank you everyone.

And in reply to this: no one on an internet forum can give you the sort of speculative answer you appear to want to hear 

What I want to hear is in my opening post - has anyone experienced anything like this? Just in case you missed it   

I've experienced developers taking a long time to do up a property, if that's "anything like this"?

FreeBear

ThisIsWeird said: And then see if you can work out what their renovation plans are, and broach the 'Building Regs' part. Tell them the UK is very tight on what you can, and cannot, just do, including things like electricals, and they likely won't be able to sell it on without this - and may have the LA taking action against them.

Building Regs cover a lot of things that people don't realise. For example, take the plaster of external walls, regs require insulation to be added. Same for ceilings & floors. Replacing a bathroom or kitchen, you need to consider ventilation and add an extractor.

In an older property, especially if it was solid brick/stone walls, you need to carefully consider what materials are used - This doesn't fall under Building Regs.. So lime mortar, render, and plaster where needed. Breathable insulation materials (fiberglass/rockwool is fine in the loft), and so on.