Doing works on a house you are buying before completion?

NameUnavailable

No bad idea. It's not your property until completion (although you need to insure it from exchange).

The works are almost certainly going to take longer than you anticipate, they always do.

I think you need to find somewhere to live for a while whilst you get the necessary works done AFTER you complete.

propertyrental

SDLT_Geek said:

OP also needs to watch out for taking possession after exchange of contracts amounting to “ substantial performance” for the purpose of stamp duty land tax.  That can mean SDLT becoming due early.

I wouldn't have thought that would be an issue if it's clear OP is not staying/allowed to stay overnight - or as I did, is collecting/returning keys daily for access.

saajan_12

The major risk is for the seller, so not much point in asking / analysing here until they give an answer. If they do, then 
- make sure its you doing the work or appointing the tradesperson not them (you don't know if the work will be shoddy if they appoint)
- don't expect to get anything back if the purchase falls through after exchange (exceedingly unlikely and there will be plenty more going on)
- plan for what happens if the work takes longer or unearths more issues (you'll be committed to buying still, so may have to live elsewhere temporarily)


If they say no, then you're back to where you started.. maybe move in with your belongings and yourself, but gf goes to stay as a lodger / with a friend for a short time? Hopefully cheaper than a full sized rental and moving stuff twice. 

user1977

propertyrental said:

SDLT_Geek said:

OP also needs to watch out for taking possession after exchange of contracts amounting to “ substantial performance” for the purpose of stamp duty land tax.  That can mean SDLT becoming due early.

I wouldn't have thought that would be an issue if it's clear OP is not staying/allowed to stay overnight - or as I did, is collecting/returning keys daily for access.

SDLT rules don't care where you're sleeping - if you've gone in and started work, I would expect that to be substantial performance. It's a more commonplace issue in commercial contexts, where e.g. a tenant may start their fit-out before completion of the lease (and certainly before they open for trade).

icicat

Thanks all for the responses, I've gone through all of them and some really good points. I agree, it's possible I will get hit with council tax fee, though I think they discount it if you are not staying there as this is what happened when I renovated my current property and was staying at parents.

I myself am not happy with this arrangement. I have seen you can rent apartments in the area for about 3.5k a month, so if we commit 7k for two months that would give enough time for renovations and do a proper job. I really don't like the complications of putting work and cost into a home that is not legally mine as if anything goes wrong I could lose that money.
Also I agree that when it comes to having solicitors involved there will be all sorts of legal complications to go through and I want this to be as fast as possible as I don't want our buyers hanging on any longer than they have to as that's when buyers start to get cold feet.

So lots to think about and figure out. I think as people here have suggested it is still possible depending on the agreement with the seller, though I've done renovations myself and there's always a can of worms to throw you off your timeframe, so wouldn't want the stress of all that.

icicat

Also with regards to damp, my only assumption is that it is rising damp, though would need to get a specialist to asses. At this point would the drilling of holes and inserting the damp rods be sufficient? I figured that would be a one day job.

I think a bulk of the work is the stripping of the wallpaper and sanding, maybe even re-plastering of the walls and ceilings. Is there a service that can do all of this? I guess painters and decorators only strip wallpaper and make good the walls etc. though would need people to do plastering etc. Should I just contact a builder to do this? I can do this work myself, though given the timeframe I think I need to employ a team.

FreeBear

icicat said:

Also with regards to damp, my only assumption is that it is rising damp, though would need to get a specialist to asses. At this point would the drilling of holes and inserting the damp rods be sufficient? I figured that would be a one day job.

It might pay to get a specialist surveyor in as long as they don't have any links to a damp treatment company (or affiliated with the PCA). If you go for one of these "free" surveys, they will try and sell you a bunch of expensive & questionable "cures".

As for those damp rods - It is debatable whether they actually do anything. Certainly, drilling holes along the base of the wall will alert future potential buyers to the fact that damp treatment work may have been carried out. Some will view this type of work to be damaging and either walk away or reduce their offer.

Fix the root cause of any damp, let the walls dry out, and save thousands on questionable cures.

pinkshoes

icicat said:

Also with regards to damp, my only assumption is that it is rising damp, though would need to get a specialist to asses. At this point would the drilling of holes and inserting the damp rods be sufficient? I figured that would be a one day job.

I think a bulk of the work is the stripping of the wallpaper and sanding, maybe even re-plastering of the walls and ceilings. Is there a service that can do all of this? I guess painters and decorators only strip wallpaper and make good the walls etc. though would need people to do plastering etc. Should I just contact a builder to do this? I can do this work myself, though given the timeframe I think I need to employ a team.

It's important to establish where the damp is coming from. 

No point replastering etc... if you don't fix the root cause as otherwise you'll end up having to re-do everything. What sort of house is it? Victorian? Personally I'd get a specialist in BEFORE exchanging to take a look, so you know what you're dealing with. 

If you don't want to live there when renovating, then fair enough. But at £7000 in rental costs I think I'd just buy an industrial dehumidifier, give the rooms a good, clean then stay in the property. 

Are you sure this is the right property for you?

propertyrental

FreeBear said:

icicat said:

Also with regards to damp, my only assumption is that it is rising damp, though would need to get a specialist to asses. At this point would the drilling of holes and inserting the damp rods be sufficient? I figured that would be a one day job.

It might pay to get a specialist surveyor in as long as they don't have any links to a damp treatment company (or affiliated with the PCA). If you go for one of these "free" surveys, they will try and sell you a bunch of expensive & questionable "cures".

As for those damp rods - It is debatable whether they actually do anything. Certainly, drilling holes

A bit off-topic, but why do some mortgage lenders insist on a PCA company survey when we all know they are commission-driven salesmen in (a thin) disguise?

saajan_12

icicat said:

Thanks all for the responses, I've gone through all of them and some really good points. I agree, it's possible I will get hit with council tax fee, though I think they discount it if you are not staying there as this is what happened when I renovated my current property and was staying at parents.

I myself am not happy with this arrangement. I have seen you can rent apartments in the area for about 3.5k a month, so if we commit 7k for two months that would give enough time for renovations and do a proper job. I really don't like the complications of putting work and cost into a home that is not legally mine as if anything goes wrong I could lose that money.
Also I agree that when it comes to having solicitors involved there will be all sorts of legal complications to go through and I want this to be as fast as possible as I don't want our buyers hanging on any longer than they have to as that's when buyers start to get cold feet.

So lots to think about and figure out. I think as people here have suggested it is still possible depending on the agreement with the seller, though I've done renovations myself and there's always a can of worms to throw you off your timeframe, so wouldn't want the stress of all that.

Of course that's always an option regardless of whether the renovation between exchange & completion is a problem or not. The point is whether the short term rentals are available and affordable (whether you can get a rental for 2 months only, as most LLs would want 6+ months and a holiday let would be more expensive, plus cost of an extra move, etc.