Page 8 | AIBU to buy the horrible house next door

thegreenlight · 2022-04-13T07:28:49+00:00

We live in a lovely (but small 3 bed semi with no scope to extend) next door has just come on the market - it’s horrible having been rented out by the guy across the road for years and he did the work himself. Our house has an extension, downstairs bathroom and utility. Next door has none of this but massive scope to extend to the back and side. We have never done a renovation before! Do we offer to buy directly from the owner and pay asking (it has been put on sale this morning through a local agent) what should I do? We LOVE our area but can’t afford a ready renovated house. It would mean a real dip in living standards while we do the work. Any advice? Am I being stupid!?

thinkingaboutLangCleg · 13/04/2022 15:18

Don't forget buying and selling are both expensive. Lots of costs you probably don't think of when you start out, which will reduce the profit you make on the sale.
Also, living in a house while major renovations are going on is exhausting. But best of luck if you go for it.

Tiddlesthecat · 13/04/2022 15:32

Be aware of the cost of a full renovation. As soon as you start unpicking one bit of a house, others things inevitably need doing and labour costs are becoming increasingly high (due to Brexit, but also less kids going into the trades). If you are interested, put in an offer, but immediately get a couple of builders round for quotes before doing surveys etc to see if you can afford the work. We have just fully renovated a house and the actual cost (which then included re landscaping as the whole front and back garden was totally trashed) was about 1/3rd more money than we had expected it to be.

Cherms · 13/04/2022 15:45

Do it! I'd love to but it's not financially possible.

Marmite17 · 13/04/2022 16:01

Initially assumed you were looking to keep your house and buy the one next door.
First thing is to get an up to date valuation on your house and look at difference in asking prices.
Plus how much work, without extending, would be needed just to update?
Tbh if you or your husband were builders, plumbers etc with contacts it would make a massive difference to cost. After a survey, looking into planning permission, can see them jumping to buy. Relative is builder and built 2 homes, with sub contractors from scratch, plus (now older) bought mostly cosmetic doer uppers but with new kitchen, beautiful driveway etc. Plus takes him a fraction of the time to complete non expert DIY.
Your DIY skills look great, the family room is lovely but your labour costs would be high. House could well be priced for builders.
It would make sense to me if you for example buying to rent to a relative. Friend rents owned property to family as an investment but very well off.
Tbh I wouldn't buy if I were you. Builder relative also owns a second rented home. Another friend in building trade owned several rental properties. As investments again able to sort maintenance problems or very cheaply.
Should say that none of builders were born well off!

grapehyacinthisactuallyblue · 13/04/2022 16:03

The great opportunities doesn't come easily. If you love the house and planning to stay there, buying next door to extend is a great opportunity for me.
We bought the land adjacent to our house when we had a chance. We have no plan yet to do anything to do with it. But I'm really glad we did, at least no one is building anything on it.

MarmiteToTheEdges · 13/04/2022 16:05

@PruGnu

Your room looks lovely and totally fine size wise. Bear in mind that once your boys get to the size that you're worried about they'll either be off out with their mates all the time or holed up in their bedrooms.... We extended for an extra bedroom and downstairs utility, it was fairly straightforward and went without a hitch but still stressful, no way would I live like that again.

This. Then if they go to university you have a lot of empty space you're paying for.

Sunnytwobridges · 13/04/2022 16:06

I think it's a great idea actually. If you love your neighborhood, the house is bigger, then why not?

ilovebrie8 · 13/04/2022 16:09

OP your home looks lovely....are you sure you want to move and do a whole refurb? as others have said building works and actually getting builders is tough and v expensive since brexit....family had some work done and were told the price of concrete has jumped hugely etc...prices are way more expensive than they used to be and there are supply issues with long lead times...just something to factor in...

Marmite17 · 13/04/2022 16:11

By builder I mean bricklayers at least to begin with.

Wouldyoudoit2 · 13/04/2022 16:15

There is a potential flaw in your plan.
If you put your house on the market then people viewing would look at both and would possibly buy next door for the same reasons as you want it.
Even if next door sell to you it will show as sstc and potential buyers for your house will use the sale price and advertisement listing of next door to pull your price down.

Most of the time people will put potential and extra land over and above aesthetics.

Without meaning to, you could drop the value and appeal of yours.
If you sold yours in a few months time with a view to doing something similar with a different property then you could possible get a better price for yours.

Marmite17 · 13/04/2022 16:22

Op is planning to sell own property to buy next door from my understanding.
Sorry terrible idea.

Calmdown14 · 13/04/2022 16:27

I think this one will be taken out of your hands with the market.

It's a lovely plot and a lovely idea but will your kids benefit more from a bigger house or from less stressed parents who have more free cash to help them through uni or other life choices?

Your house looks lovely. I do think property shows and Instagram have us all fooled on what we actually need and working long hours to pay for space to put a pot plant in!

GirlOfTudor · 13/04/2022 16:41

I wouldn't want to have such upheavel in taking on a massive project and living without a kitchen, etc, just to potentially have a bit of extra space in the future, especially when your house looks so lovely!
It's a lot of money and comfort to risk, especially with young children.
I'd also find it weird to move right next door (although my parents did that before I was born!).
If you could stay where you are and either buy next door to combine with your own house and make a big detached property, or buy next door and renovate whilst living comfortably, I'd say go for it.
I wouldn't advise such moves whilst the economy and interest rates are how they are though!

MissMaple82 · 13/04/2022 16:41

You'd struggle to find a renter when the landlord lives next door!! Nobody wants that!! 🧐

WomanStanleyWoman · 13/04/2022 16:46

@MissMaple82

You'd struggle to find a renter when the landlord lives next door!! Nobody wants that!! 🧐

Plenty of people take in lodgers though…

Catshaveiteasy · 13/04/2022 16:57

"If you have pets DEFINITELY DONT DO IT!

My DH had a daft idea that all we needed to do was to tell the builders to close gates behind them etc etc. There were loads of different people working on our large extension and what exactly he was planning to do if they left the gate open and the dog escaped is anyones guess. He also fell out with the builders and I had to claw it back. The roof was off at the time as well..."

A few years ago, my partner ran over and killed a dog that ran out because builders had left a door or gate open.

Quartz2208 · 13/04/2022 17:04

@thegreenlight when you say equity you do mean the difference between the selling price and how much you have in the mortgage. But you havent answered how that wont be taken up in the buying. Yes your house is worth more but only a max of 35k - where does the 100k come in.

Then you have the fact that the difference between the 285k for that house and 400k for others done - would for you be swallowed up by the costs etc of buying/selling and all the work done. And you would need to get a mortgage to cover the difference - so why not get a house already done?

Original poster

thegreenlight · 13/04/2022 17:12

I plan on paying a smallish deposit on the new house and then overpaying when everything is done. We have 150k equity which we would use to do the house up or at least get the work started. We are planning on changing the kitchen, bathroom and flooring in our own house anyway so would pay that as extra. It’s just the build we would need done for that.

OP posts:

Quartz2208 · 13/04/2022 17:20

@thegreenlight

I plan on paying a smallish deposit on the new house and then overpaying when everything is done. We have 150k equity which we would use to do the house up or at least get the work started. We are planning on changing the kitchen, bathroom and flooring in our own house anyway so would pay that as extra. It’s just the build we would need done for that.

So you would mortgage the equity then - so basically small deposit and then borrow the rest? So in effect increase the mortgage up to say 90% of value? Or do you have the 150k in savings.

I cant work out how you think you have 150k in equity that you can just spend unless I am missing what you mean by equity.

So overpaying the mortgage once this is done to reduce done the mortgage?

What is the max value you could get the house up to in your area?

I would definitely speak to a financial advisor/mortgage broker about this - as to what interest rates etc you could get as I am not seeing the financial benefits of this at all.

Is that right.

Original poster

thegreenlight · 13/04/2022 17:23

We will use a small deposit to buy the house next door. The 150k difference between what we owe on our mortgage and what we sell for will be used to fund the start of the build. I thought that’s what everyone does when they renovate? I didn’t realise most people pay all the proceeds from the sale on the house and then find the work other ways. This is all really sudden and I haven’t really thought about it before!

OP posts:

Franklin12 · 13/04/2022 17:29

CatsHave. DH is completely hopeless so I kept him well away from the extension we did in the current home.

He has unrealistic expectations of what builders will and wont do. Yes, god forbid the dog was run over. What would he then do? Sue the builders, keep some money back. He has many talents. Managing an extension isnt one of them.

AmberLynn1536 · 13/04/2022 17:30

So you are getting a new mortgage for almost the full purchase price of the house next door?

Reluctantadult · 13/04/2022 17:39

I'm sure someone will have said this up thread, but just in case. I would be really careful about planning permission. If you couldn't get it you'd be stuffed. Ring the council and see if you can have a pre-application conversation. Have a nosy to see if anyone on the street has done what you are thinking of, might give you a clue.

Quartz2208 · 13/04/2022 17:46

@thegreenlight

We will use a small deposit to buy the house next door. The 150k difference between what we owe on our mortgage and what we sell for will be used to fund the start of the build. I thought that’s what everyone does when they renovate? I didn’t realise most people pay all the proceeds from the sale on the house and then find the work other ways. This is all really sudden and I haven’t really thought about it before!

Ok so you have say 170k on the mortgage and 150k equity correct.

But the purchase price is 285k.

At the moment (and this is why I am questioning it). You appear to be using the equity to fund the works - which is fine.

But where is the 115k you need to buy next door? The difference between the amount you have on mortgage (which you will be porting over to the new property) and the price of the house. Are you thinking of getting a mortgage on this?

I am not sure it really makes a difference as to where the money comes from. Using the equity or remortaging. It remains the same.

But in order to do up the 285k house - wont you need at least 400k? And you only (if you dont remortgage) have 320k (plus any savings you have)

mumda · 13/04/2022 17:48

Chances are it'll be sold by now. Seriously houses don't last long round here. Development potential pushes the price up. It's like 2005 all over again.