Thinking about buying a house that needs total renovation...

[LovelyOnion]

Hi, fellow parents! Recently we are interested in a house in Zone 3, London that was released just a week ago. The location is ideal, with a large and lovely garden, off-street parking and have potential to extend via side-extension or roof extension.

The caveat is that the house needs a total renovation. It's a 2-floor, 1300sqft, 3 bedroom 1930s detached house that has been lived by the previous owner for a few decades. If we refurbish it, it will need:

• new carpet (and floor?)
• new paint on every single wall
• modernizing the existing central-heating and gas system
• modernizing the existing kitchen and bathroom
• removing a sink (why does it exist in one of the bedroom?)
• repainting the external closure
• new windows (Optional)

So we don't expect any structural change, and we just expect a basic renovation. Something like this (fifimcgee.co.uk/blog/10-of-our-favourite-before-and-after-renovation-photos) is more than enough for us.

And the obvious problem is going to be money. Currently, the property is listed at around 780k, with houses nearby in a hospitable condition being bought at around 780 - 810k. Upon viewing, the agent (no idea about renovation) told us that she expected it to be around 760k, and proved that others are interested in this property as well, although no offer was made or accepted yet.

Questions, is my estimated renovation cost at 130m2 * £500/m2
= £65000 correct? Or £80000 with every fee included. Is it realistic for us to make an "low-ball" offer by 9%, that's £710000, and expected a final decision at £725000 or below?

Honestly, we have no connection with any builders out there, and we are scared of buying such an old house with unexpected renovation cost...

It's also worth checking the availability of tradesmen - we've recently had work done and long delays on 2 out of 3 though they were specialist but 6 months delays due to covid. Definitely check electrics first and get roof looked at - you'ld want any rewiring done first.

I've bought a renovation before and its can get very chaotic - we had 2 months with no kitchen, no electricity or heating at times, dust everywhere. Some people live elsewhere during it which I'm sure is much more civilised but adds a lot to costs. I think some people vastly underestimate the cost and time for renovations and overpay though its great when its finished and all as you wanted.

Just get an offer in and take it from there. Doesn't matter what it is but you can't negotiate down so start lower and have them negotiate up. Have a ceiling in your budget but for a house you'll be staying in for a good while the reno costs will be relatively low.

I've lived in two 1930s houses and if the house hasn't been renovated in decades, then there's going to be a lot of hidden things that will need improving: electrics (probably a complete rewiring or at least partial), insulation, roof will need to be checked, and as someone already pointed out, soundproofing on party wall will likely be an issue too. The front door is likely to be very draughty and a nice replacement one will cost several thousand. If you 'google' property renovation costs in London , there are loads of websites with guidance - and assume the top end. If you know a trusted builder or architect, ask them to take a look to give you a ball-park figure. Otherwise if you're serious about the house and worried about renovation costs, get a chartered surveyor to survey it before you decide how much you're willing to pay for it.