Buying my first home which needs renovation work and having a mild panic attack

[Vogelina]

Hi!

My partner and I are buying our very first home in Walthamstow. Of course, I like to make life difficult, so instead of being sensible and getting a home in good condition to start off with (maybe a lick of paint and new carpets, no biggie, I can do this, kinda place) I had to get a house that looks like it took style inspiration from an old age home. Not a big deal (if you ignore the shower chair), however it is TINY. So of course, I decided that I was just going to renovate the whole thing and build out a double-story rear extension to house a new kitchen and bathroom. Because why the hell not?!

We've been given building plans from the previous owners, which have been approved by the council. Because the house is so narrow, there isn't that much of an extension to be built on - it's an L-shape that extends out by 3m and is 3.48m at its widest point.

I have £55000 to complete the work which I thought was enough, however, when browsing through Houzz last night, I saw companies listing work they'd done with a price bucket of £75,000 - £100,000!!! So now I'm in the middle of a mental breakdown, wondering whether I should pull out of the sale because I can't afford to do anything.

I would love to know what other people's experiences have been with house extensions in East London. Has it really been as expensive as this? Any advice, thoughts, recommendations would be so very much appreciated xxx

Sorry love, there is no way you'll get a double story extension for £55k let alone add in a kitchen and bathroom as well.

Building work prices have gone crazy in London at the moment.

Have you got the house plans to show? Might be cheaper to do the loft to add a shower+bedroom than a double story extension.

You don't have to do all the work straight away - you could live there for a year or two saving hard to get the extension you want.

How does the price for the house compare to 'done' houses in the area?

I expect London prices are higher, but even in the west country you wouldn't get a double storey extension for that. It's not just the build costs, it's all the extras and unforseens that stack up, and then there is VAT as well.
If you love the house, can you make it work with smaller tweaks? Then you could save some more and have it done in due course. If not, and it will only work for you with an extension, then perhaps it's not for you. Also, where would you live while the work is done? Living in a major building project is hell on earth.
Small can be beautiful though. You could edit your posessions and live a simple bijou lifestyle. No good if you want or have children though.

Prices aren't really going up - if the house doesn't work for the money, keep on looking.

I bought a hs in an area I liked recently that I am currently renovating so I completely get the adding value. But your budget is defo unrealistic even for a single storey kitchen & bath extension. With a property that needs renovating like you mentioned you have to factor unforeseen issues to do with the walls, foundations is the rewiring etc & this is before you get onto the spec of the finishings.
Your point of how narrow the hs is makes me ask if it is worth it also? If you are getting it for a steal & have not found anything too worrying in the survey & you can stage things over time & you know or plan to do a lot of the work yourself, go for it, otherwise maybe get something that isnt so daunting.