Should we buy this house?(41 Posts)
Looking for some advice, we are in the process of buying our first home.
The property is being sold for £250,000 and is a 3 bed semi detached in a lovely village.
The price is very good and we knew it needed modernisation and the garage will need rebuilding hence the price.
However, the building survey revealed many matters at the property needing urgent attention and we also had independent surveys done we are finding more urgent issues as well.
By the looks of it, there will need to be roughly £50,000.00 worth of repairs done just to get the house in working order before any kind of modernization or improvements. The main ones are:
-Removal of asbestos, removal & replacement of all gutters, £5,500
-New Windows, £6,000
-Loft Insulation, £1,500
-Fencing - £1,800 (current fence fallen apart)
-Demolition and rebuild of garage - £20,000
-Drain Repairs - £4,000 (following independent survey)
-Re-wiring - £1,500 (further testing may reveal other electrical issues)
-New Boiler - £6,000
-Rodent Extermination - TBD
-Ceiling Repair - TBD (currenty large hole in kitchen ceiling)
Of particular concern to us, however, are the Boiler, electrics and drains. In the property information form filled in by the seller it was stated that the boiler was in good working order and serviced in 2018 with a report to follow. We have since been informed by the current occupant that the boiler is not in working order and was told by two separate inspectors that the boiler could not be repaired and needed immediate replacement. We have also not received an inspector's report.
With regard to the electrics, it was stated that the electrics were tested, however, no year was listed and no certificate has been shown. To our knowledge from the surveyor, the last testing was in 2006.
An independent CCTV survey of the drains has shown significant cracking and root growth, much will need to be replaced immediately, and the quote was between £3,000 - £5,000.
All of this is before any decorations and we probably won't have any money left to do any..
We've been told to go back to the estate agent to either ask if the seller could get some of these sorted or to ask for the price to be reduced but then we'd have to go through the mortgage application again (we've received our mortgage offer)
Not sure what to do at this point, we don't want to spend more money than the property is worth, it's a good investement and has potential to extend but it's going to be so expensive just fixing it up , we want to open up the kitchen and put wood flooring throughout but we won't be able to do that either it seems...
Should we walk away? We really don't want to do that but I don't think the seller will deal with the issues prior to completion...
If it's a private home and not been rented, why do you expect an electricity check to have been done? There is no need for one if you own and live in a house, except if you want to have one done. The wiring regs are not retrospective, otherwise every house in the UK would have to be rewired every time the regs got updated.
Have a look online for oil boilers and you could consider a Rayburn or Stanley range that do the CH, HW and you cook on them as well. Get the largest tank you can (mine is 2500 litres), and is in a tough plastic/rubber, so will last a long time. Most places give you a discount if you order 2000 litres plus oil at a time, so a bigger tank makes sense.
Thank you for all the advice, we will go back to the seller but as the house is already priced low we won't expect more than 5k really.. a bit annoyed at the seller lying about the boiler and electricity check.
I think we're going for it, it's a really good investement and such a nice place for our kids to grow up.
Hopefully we dont have to wait too many years to do the conversion and get the extra space!
It sounds like it is already keenly priced, and I would expect things like the windows and the guttering to be included in the fact that it is priced £70K below what you'd expect to pay for a similar house in the area. Obviously, the vendor isn't going to then knock another £50K off, as they already have done.
The fact they said there had been a wiring inspection and the fact they said the boiler was in good working order however, might give you leverage to get the cost of those, at least, knocked off what you had agreed. It is certainly worth going back and asking. You might get a compromise between what you want and what you get, but at least that will be some additional money for you. Might pay for you to continue renting while the work is done (which will be far less stressful and presumably quicker and therefore a bit cheaper if not trying to work round you living there). Potentially they might say no. At that point you then decide how much you want the house.
Oh I just read that you have no gas supply and it's oil. That price makes sense then
I can say that a new boiler shouldn't cost £6,000 as I work for a home improvement company. The best boiler (worchester bosch) is about £3,000 bought, installed and commissioned by a gas safe engineer and any other price you have been quoted is ridiculous. Even if you need new radiators too, a radiator is about £40-£80 and an hours labour for each one to be fitted. You're looking at about £4,000 max for a whole new central heating system including commission, 5-12 year warranty and new radiators. It takes an engineer a day to install a new boiler, it's not a massive week long job but some companies will take the piss and make on it's a massive, massive job
I did this last January, had to move to a house that was disabled friendly so limited stock.
Boiler had to be replaced straight away (does your price include new radiators as that seems a high price), had full rewire (check actual cost as this looks low) , new roof, having plastering done, converting garage, bathroom needs replacing all radiators need replacing the list goes on and also as you do jobs you uncover others. The dust can be awful at times, every time you unpack you repack again because you've got another job to do. Finding tradesmen is a nightmare, waiting for tradesmen is a nightmare. But I'd do it again. I'll eventually have a house suitable for me, my taste and as a bonus some equity hopefully. If you can afford it, can cope with the mess go for it.
I did negotiate price down after survey, mortgage had to be relooked at but it was just a formality took perhaps a week for new paperwork etc.
I'd tell the agent about the report and ask what the sekkers are willing to reduce price by. Aim for at least half. If you got a bad survey so will anyone else so they would be wise to compromise. Of course you have to tell mortgage company as a lower sale price affects the deposit percentage. I'm surprised you got such a high mortgage offer with all that work required.
As for the work itself it would't phase me but go back to seller first and then consider renting while the work is done- living there will be frustrating for the builders and you and everything will take longer.
So you have 45k after putting down a 30k deposit? If all the works did come out (apart from garage) at 30k that still leaves you 15k to do some pretty stuff, I think you would be crazy to let this house go! but would advise not living in it if you possibly can whilst major works are done.
Going against the grain here but it sounds to me as if the house is correctly priced and I would be surprised if you would get a reduction, to get all of the work you have listed done is approximately £27-30k (not including the garage which is not essential that can wait) so that brings the cost of the house to you to £280,000 before any cosmetic work, it sounds to me as if you would be getting a good long term house for your money.
So you've got the money to buy it and do the key stuff and it will still be cheaper than a similar done up property. It's a no brainier, buy it, do it up then sell and put your increased pot into a house you can move into.
only buy it if they drop the selling price. We had some small issues like yours, much lower value, and we ended up paying half each, ie they dropped the price by half of the cost of the work, and I got the work done
Our deposit is 30k but we have about 45k saved to spend on renovating it, obviously we'll have to decide what is most urgent and wait a few years for the rest..
If it needs £50k of work and you have £30k of savings, it doesn't really matter how much they reduce it by, you won't be able to buy it and do all the repairs. The loan will be on 90% LTV terms so for every £10k knocked off the price that only puts £1k in your pocket.
With two small kids it sounds like a lot of work and investment. I'd walk away tbh.
We have no relatives here, im from france and my husband is from canada, its too bad as his dad is an architect and best friends are contrator and plumber...!
I think the appeal is the potential, when we've converted the garage and done a second storey extension (sometimes in the future ) we'll have a good size 4 bed semi so it should be worth it.
I want a house where my kids grow up in so we wouldnt be sellung it for a long time!
I know £6000 for a boiler seems crazy, but there's no gas in the village, its an oil boiler with a huge tank, Im not sure if we can get one second hand
Do you plan on doing any of the work yourselves? It can be extremely stressful living in any kind of building site even if you're having some work done before you move it and can take time.
Is this what you want for the next 18 months / 2 years?
Saying that, I would. Do you have relatives nearby in case your hot water / loo / kitchen is out of action... that makes a difference too.
I think you can bring some of these costs down, just based on your extortionate boiler quote. But a margin of 20K after these background works is not enough to make it worth the while buying this one. You can lower your offer now. They might not take 50K off but you could ask for 25K off the agreed price based on this new information.
I agree with @filka and having renovated two houses what you’re staying wouldn’t put me off. But you need to be prepared for upheaval for a while.
We wouldn't be living in the property while the work in going on, we are renting at the moment.
The garage will wait as we want to convert it into a bathroom and guest bedroom, because we have to rebuild it'll be priced as an extension
Tbh, you don't need to rebuild the garage there and then. The main things I would focus on would be the asbestos, wiring and boiler. (Which could be cheaper). Windows when you can. Fence when you can.
Not concerned with the insurance figure, someone thought that was the value of the property and that we shouldnt pay more than that
The propert is priced at £250000 instead of the average £320000 for the area so we won't get another £50000 off the price.. We're hoping to get the £5000 for the drains off through
With two small children to manage whilst all that works going on, I wouldn’t even suggest living in the property so you had the best chance of getting it all done as quick as possible.
I second this. We're in this position currently as there were more works needed that we discovered once in. We certainly couldn't have the kids there whilst doing the work and it is one painful and expensive slog. I'm not sure I'd recommend it unless you have a good discount, plenty of contingency and a lot of determination.
So you buy for £250k, renovate for £50k and then it's worth £320k - overall sounds OK.
Rebuilding costs and selling price are completely unrelated - during recessions you sometimes find that the rebuilding cost is more than the selling price. Rebuilding cost is needed for insurance purposes and includes demolition and clearing debris etc.
Some of the costs look quite high - loft insulation is potentially a DIY job for £200. Do you need to replace the oil boiler with another oil one? Is there no gas main? What about LPG?
Could some costs be deferred, do you need to replace the garage immediately, or could it wait a year or two? Or perhaps demolish now, rebuild later.
You could get an EICR report on the electrics for about £250 but need a good electrician to do this, there are some cowboys about who don't test everything they should. Ask on www.electriciansforums.net/ if there is anyone in your area. Regulations have changed over the years so even if the wiring is OK some parts may need upgrading, especially circuit breakers and earthing.
Just go back and ask for a price reduction. You won’t need to do a whole new mortgage application, they’ll just recalculate it for you. It’s quite normal for purchase prices to be renegotiated after survey.
Did you have a survey done through the mortgage company? If you did and they haven’t asked for a retention then the house has been valued at what you’re paying.
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