To not have. A clue about the best option

[thisisasurvivor]

So
My family and I built a new house
Old one crumbling to pieces
Badly built , not a great long term option etc

We have the final 60k to pay to the builder

Sat down with my siblings at the weekend and we have two options

1. Sell the old house to pay off the builder debt and some of the Loans we owe (would hope to get 150k)

1. Work our asses off for the next year to pay builder (I mean take on an extra job work 7 days a week for 12 months) and still have the loans to pay over three years (and get 10K from somewhere to do up Old house to rent it out for 700 pcm)

Previously other wise posters suggested re mortgage the house but it has not passed building control as builder has few more things to do and will do that when we pay 60k to him

I realise I am very lucky
This is not a brag thread at all
I just have no clue what to do

Also to add, if you do decide to sell, it would need to be a cash buyer if no warranty in place as no one would get a mortgage on it.

You can get retrospective warranties, but not many lenders will accept these, but there are a couple who will.

How long ago was the original house lived in? If you are in England, there is an empty homes scheme. If the house has been empty for 2-10yrs, you only pay 5% VAT on goods/services to get it back to a livable state. If not lived in 10+ years, it 0% VAT. Its a government scheme to get empty homes livable again.
You have to get your councils 'empty home officer' come out to look at what repairs would be needed, and check the council records for when it was last inhabited.

The original quote was 40 k less

So I had 10 set aside for dec and due ten in wages for work in Jan 24 also

But costs went up and the builder took ages to update me on this

Wow did NOT know this
Need to look this up asap

Gosh I'm clueless

Do not know this
Need to check

Thank you all

Great ideas

Idiot I know I am
Just very clueless really

Most days I veer towards this

I too was not aware, until I read about it on MN after we'd bought a derelict property. Unfortunately, lots of trades and builders merchants/suppliers are also not aware of the scheme, and assume that YOU as the owner claim the VAT back- like on a new built. Its different though. The supplier/trade should only charge you 5%/0% VAT on the repairs and then THEY show the tax office a copy of the empty homes certificate that the council give you.
See if your council have an empty homes officer to discuss it further, because it can be confusing. More info under section 8.
Buildings and construction (VAT Notice 708) - GOV.UK (www.gov.uk)

@SM4713 how lovely of you to send this link

You guys on here are great

I'm embarrassed by how little I know sometimes
And thank you all so so helpful

I'm going to try to keep it
Do it up
Rent out
Slog like mad for the next year
And siblings and I aiming to pay builder by Feb -march 24

He is a friend and we did many favours for him so I think a three to four month wait is not a big deal for him (he said a few times there is no rush )

@SM4713 what was it like to build a derelict property ?

Did you have to pay cash?

Ouch. Did you always plan to sell the original house? If so, still do. If not, find another way to keep it.

I do echo some of the others though as it's probably better to just have the money.

Yes, we couldn't get a mortgage on it so paid cash. No working boiler, no usable kitchen and smashed or boarded up windows and doors. We lived in a caravan in the garden for over 2yrs whilst it was renovated. Difficult at times, but worth it in the end.

Amazing work @SM4713

And thanks all xxxx
Much appreciated

Going to come up with the money and get another loan to pay builder

Thanks again all x