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Sell house in bad condition and buy flat in good condition?

46 replies

KettleOn919 · 09/03/2018 17:17

What would you do if you owned your house outright, but it was in terrible condition and you knew you didn't have the time, mental fortitude, organisational abilities or, most of all money, to sort it out?

And you had reached an age where there was little hope of you ever having much more money than your current meagre-ish life savings, which aren't enough to even begin to sort out all the things that need doing?

I've been in this place for twenty years now. It's a little two bedroom cottage in a lovely part of East London. The things that are wrong are a combination of lack of maintenance and suspected serious structural damage caused by the previous owner in the 1990s who knocked out walls, chimney breasts, stairs etc in an effort to make the place open plan... this would have been before regulations came in. There's loads more: rotting windows, sagging floors, possible asbestos, leaky plumbing, half the lights don't work, badly configured rooms... the list is endless. Really, probably it needs gutting and starting again.

I won't go into why I bought this dodgy property twenty years ago... I can only say it seemed to make sense at the time. Now it feels like the worst mistake I ever made. Since I did, I've faced the death of the relative who was going to help me sort out the place, redundancy, a scary medical diagnosis and umpteen recon surgeries. I'm now working part time and helping to look after very elderly parent who is an hour away by public transport (I don't drive).

I can't take this stress any longer. So...am I crazy to be considering selling my house off as a project for someone who knows what they are doing and has the money to do it? To buy a snug, affordable flat instead, where all I'll have to worry about is what colour to paint the walls? I don't think so, yet everyone I talk to (including aforementioned elderly parent) tells me "You're getting rid of a FREEHOLD property and buying a flat? You're a fool!!!

I'm not a fool, am I?

OP posts:
hesterton · 09/03/2018 17:19

This reply has been deleted

Message withdrawn at poster's request.

LyricalGangster · 09/03/2018 17:24

Look very carefully at the leasehold charges for a flat, make sure that you can afford them even if you lose your job/retire/cant work as these are charges that have to be paid. If you can easily afford them now make sure you can also afford them in the future (and any contingencies - so say if the block needs a new roof you can pay your share of that) then go for it.

KettleOn919 · 09/03/2018 17:50

Thanks all!

Gangster, I didn't mention in my post (I didn't want to make it any longer than it already was), but I had a flat before this house. I loved my little flat but I did encounter problems, although they were more with management issues than costs in that case.

My parents had warned against a flat, and strongly urged me to go for a freehold property "even if it needs work" for my second purchase... I listened, and that's how I'm in the situation I'm in now!

If I do move, I definitely will make sure I choose a flat that is properly managed, and that will be affordable enough to leave me with a nice safety net of savings.

Again, many thanks.

OP posts:
Whoville · 09/03/2018 17:50

It sounds like a good plan if you'll have the money for it. Have you had realistic valuations done? It might be worth having a full structural survey done yourself so you can market it listing the faults so there is no time wasting from potential buyers etc. Also if it is in a really poor condition it might be un-mortgageable so again you would be able to list it as cash only purchase.

KettleOn919 · 09/03/2018 18:07

Whoville, I had a structural survey done a couple of years ago, but it was only partly helpful. Many of the things the surveyor noted on his report were self-evident anyway, e.g. rotting window frames and doors, lights not working. For the possibly more serious issues, he could only say "You should consult a structural engineer to report on the adequacy of the beams", "You should consult a reliable electrician to report on the condition of the wiring" and so on. Which I never got around to doing.

I was wondering about selling the house at auction, to get the whole thing done and dusted as soon as possible.

OP posts:
MyBrilliantDisguise · 09/03/2018 18:10

Could you sell that house (don't blame you for wanting to do that!) and get a cheaper house elsewhere? How much do you think the repairs would cost, realistically? It is in London so presumably house prices there are high.

You say you want a flat that's well managed - that will cost you.

Do you have family and friends near you or could you move anywhere?

MessySurfaces · 09/03/2018 18:28

I don't think you are mad at all! I think a well managed, share of freehold block is an excellent place to live. If it is neighbourly it can be a huge asset as you get older yourself- very easy to mesh into a good support network.
Mine was fantastic when I had tiny babies- I only moved because we had outgrown it.

KettleOn919 · 09/03/2018 18:32

To get a cheaper house in good condition I'd either have to move to one of the worst areas of London or move much further out. I don't really want to do either of those things. It's important for me to be in an area where I feel safe, and I there's no way I can move further away from my 90-year old mother who needs more and more help these days.

Also, I work in central London, so transport/fares/convenience are issues there.

OP posts:
RandomMess · 09/03/2018 18:35

I don't think you're mad at all but not sure about an auction!!

If your place was gutted could it be extended?? I really think you will get a good price for it. Don't rule out looking for a 1 bed house locally either.

MyBrilliantDisguise · 09/03/2018 18:41

How much would the monthly charge be on a flat? I was looking at a really good flat here (NW) and it was £100 pm but then I've seen holiday home programmes where it's £350 pm.

Ginorchoc · 09/03/2018 18:47

Even if the condition is bad, if you bought it 20 years ago you should have some decent equity to start again. Maybe sell via an agent who auctions and but a min price on it.

thirtyplusone · 09/03/2018 18:53

If you bought 20 years ago can you take a loan against property to do up then sell?

Either way don’t undersell yourself! A doer upper cottage in east London?! Expect a bidding war. I wouldn’t advise on aunction it looks desperate and you won’t get the best price.

Sell it, buy a lovely little low maintenance flat. Live happily ever after stress free

KettleOn919 · 09/03/2018 18:59

Hmmm... I could easily afford £100 per month for service charges. £350... a bit too high for me!

The person who buys this place, if they know exactly what they are doing and have the money to redo it from scratch, then they can quite possibly make it a little gem. Unfortunately, I am not that person!

I wish there were more 1 bedroom freehold houses available! There are actually a very small number just around the corner from me, but in the twenty years I've lived here only one has come on the market... I believe it went within 48 hours.

OP posts:
SimonBridges · 09/03/2018 18:59

Sell it and go for a new or at least low maintenance flat.
As others have said though, check the maintenance fees.

MyBrilliantDisguise · 09/03/2018 19:08

What sort of price do you think you could get for it if it was all done up? And what do you think it would cost you to do that, if you organised it yourself? And what do you think you'd get if you put it on auction today?

FluffyWuffy100 · 09/03/2018 19:13

Wouldn't it be worth taking on a 'small' mortgage (in the context of london) of e.g. £150k and getting the work done yourself?

KettleOn919 · 09/03/2018 19:32

I have no idea, Brilliant – my utter cluelessness is part of the problem! But without a doubt, fixing it up would cost many, many times my life savings. Plus, I would be completely incapable of organising major building works even if I had the funds. I need less stress in my life... not more!

OP posts:
Chickencellar · 09/03/2018 19:44

Fluffy
That's not an option , she has stated she doesn't have time or mentally be able put up with the work.
Kettle
Hope you get sorted research any flats well before you buy. By the sounds of it selling your house will be the easy bit.

MyBrilliantDisguise · 09/03/2018 19:53

Why don't you get an estate agent in? Ask "What's it worth now, what will it get at auction and what would someone resell for if they did it up?"

You can then make a decision.

Don't worry if the house is in a state - estate agents see all sorts!

MyBrilliantDisguise · 09/03/2018 19:54

Have you been on Zoopla? You can see how much houses have gone for in your street and local area.

Oxfordblue · 09/03/2018 20:03

Could you get a lodger? Or a student from a local university? Maybe a short term income boost would enable you to do it up?

RandomMess · 09/03/2018 20:12

Getting a major refurb done in London is hugely stressful due to lack of tradesmen.

KettleOn919 · 09/03/2018 20:28

How accurate could the estate agent's valuation be, given that nobody knows the extent of the structural faults yet? The surveyor told me that the only way to find out would be to engage a structural engineer. Should I do that first?

OP posts:
RandomMess · 09/03/2018 20:35

Ask for an evaluation from the estate agents assuming major work needs doing such as rewire and steels putting in. I'm sure if you get 4 valuations you will have an idea.

Any buyer will need their own survey for mortgage purposes so I wouldn't pay for one.

RandomMess · 09/03/2018 20:37

Also when you consider any offers I would be up front that you won't be negotiable downwards post survey without proof of OTHER major work required and quotes. It sounds like only a developer would take it on tbh!

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