Survey not great what now?

[Ohcrapbags]

House was for sale for £175k, we offered £170 as it needs cosmetic work (just very tired looking), but settled on 172k.

Mortgage lender agreed value at 172k, but didn't actually see the property due to covid.

We had our homebuyers report back. The independent surveyor has put the value at 160k.

There are some issues with the roof, flat roof extension, electrics are old, the drainage under the house is old. There were a lot of "3" s basically.

So what next?

I know we need to get some quotes to see if it's worth it.

I know they won't come down to 160k, but how does this homebuyers report effect our mortgage? (We are borrowing 145k towards the 172k).

Any advice would be great.

This was the only house by far in the area which was okay and it's not for long term. We want to be out of here in 7 years max (we hate this area but for lots of circumstances we had to move here as it was cheaper last year and we are stuck here for a bit) but we are sick of renting. Rental prices are crazy here and only going up. That mortgage was going to be nearly £300 a month cheaper than our rent.

I'm just at such a loss over what to do and any advice would be appreciated.

Windows looked okay but the patio doors are old, not upvc they are the aluminium frame ones.

I've sold a house many years ago where I didn't have a FENSA cert for a upvc door so got an indemnity policy.

The internal door that basically doesn't have safety glass doesn't bother me as I would be changing it anyway.

And we have kids - youngest is 8 months which would be a worry with the internal glass doors but we would get rid as soon as we go the keys to be fair, they aren't needed really and we can replace whenever.

Fences one side belongs to us out of three. But it's not a huge area so I'd just be willing to pay to replace all if needed and agreed.

It sounds like a house in poor general state of repair with quite a few big jobs that need doing. Is the process reflective of its condition? How does it compare to the price the buyers paid 3 tears ago? Do you have the funds and the desire to renovate? Are you likely to get your money back based on the prices of similar properties in good condition?

No felt under the tiles is not a problem, our last house was 120 years old with no felt and the roof was in excellent condition ( 2 different surveys confirmed this ).

It's very tired cosmetically.

Current owners have done nothing, not even repainted.

Bathroom and kitchen are okay though, both modern.

The house two doors down was beautiful and sold for 20k more in December, even though it was smaller.

But - this house should be a four bed. It's a three as they took down a wall to make a huge master bedroom (the third bed is the converted garage down stairs, it's also got two other repetition rooms). We were planning on putting the wall back up so Dh could have an office. Estate agent said they were crazy for not putting the wall back up before putting it on the market.

The house last sold four years ago for 150k.

House prices here have gone up dramatically in the past three years though - lord knows why, it's not exactly a desirable area.

We can afford to do the work if they take a lower offer. I'm not sure if they will although I know they are proceeding on a no onward chain house in a v nice area a few miles away and are keen to move.

I will get some quotes and see how we go.

@Chumleymouse

No felt under the tiles is not a problem, our last house was 120 years old with no felt and the roof was in excellent condition ( 2 different surveys confirmed this ).

We've always rented Victorian houses when we were in London. So no felt isn't new to me! It was the leaking seen that was a worry.

Some of theses things don't matter. If thrceinfows are original or predate fensa they don't need a certificate. Probably many things in most houses don't meet current building regs because they are changing all the time - you don't have to unless you are replacing something.
Old houses require maintenance though. Buy you say the sellers have only been there a short time. Maybe they had 'if it ain't broke why fix it' attitude!

What have you got to lose by saying you’ve had the survey and on the basis of that, reduce your offer. I think hold your nerve on this one. If they really want to move, they might not want to go back to the start of the sale process with someone new and risk this happening again.

So I think we will have to just amend the offer on Tuesday. If it falls through, it falls through.

I can't sleep for worrying over it.

After a sleepless night, still no clearer in my head.

The trouble is, round here houses aren't usually that great. Not much comes on to the market around 175k (top of budget) and what does is usually awful or in really bad areas (I'm talking really bad). They are all still snapped up within a week though which I will never understand.

There is nowhere within a 15 mile radius is of here that we can afford. And like I said, it's out of our control but we are stuck here for a while.

Rental prices are crazy. It's 850-950 per month for a three bed house, again not in great areas and usually not nice houses.

A mortgage for us would be significantly cheaper than that rent.

This house stuck out as it's on quite a good road where houses don't come up for sale often. People usually buy them and come out feet first. It had great potential already just to put a wall back up and turn it back into a 4 bed.

We honestly don't know what to do for the best.

How much have prices increased over 7 years? If you’re there that long you’re likely to be selling it for more than you bought it. Especially if you turn it back into a 4 bed.
I think from that list the rewiring might be the thing you need to do, but get the seller to get an electrical report, or commission your own. I would live there for a bit to see if the roofs leak. I only fix / replace roofs if they’re leaking, otherwise leave well alone. I would try for a reduction on price, but again this depends how much the price reflected the condition. Call the surveyor to explain a bit more what he thinks really needs to be done. The reports they write are very risk adverse.

We first flirted with the idea of moving here 8 years ago.

A three bed semi then in the area we want to buy was 115-125.

Now they are 170-190.

So a significant rise, all over the area.

Honestly, do you want to take on a house that needs so much work?

We had something similar with the first house we had an offer expected on. We went back to the sellers and said we would need to knock 10 off our offer to be able to afford to do the work that needed doing. They turned it down, we walked away and quickly found a much better place.

Don't let your current landlord stress you out, you have time to make your decision about all of this and talk to the sellers etc.

I'd get a builder to estimate on the chimney re-pointing and roof leak fixing - you can do those without tackling the whole roof.

Ask the vendors to arrange a new electrical safety inspection if they can't find the certificate.

Everything else could be done in stages as part of updating the house to your taste.

The valuation is more than you're borrowing so I wouldn't expect it to affect your mortgage - bluntly, the lender could recoup their money if you defaulted, which is mainly what they care about.

It sounds like you're familiar with this sort of house, and already living in one with some of the same issues, so to be frank - living in this one and saving up to make some improvements i.e. the render, won't be much different other than the saving you'll be making on rent.

You say you need to be in this area and nothing much else ever comes up - so would you say that the houses are likely to basically solid, with repairs and maintenance no different to what you'd expect for properties of that age? If so, I would go for it, and just do things a chunk at a time.

I don’t think it sounds that bad. Surveys are always super cautious. The roof if it’s an older house wouldn’t have felt and things like lack of safer glass, fensa certs, buildings regs just show that a job wasn’t done recently rather than are inherently wrong. Similarly electric regs change all the time so you’re nearly always going to be out of date - doesn’t mean dangerous. Can you speak to the surveyor and get a better idea of how bad the condition really and how much he is just flagging potential issues?

@MutteringDarkly it's so odd as it looks like people here just don't care. Houses get snapped up when you can see even from the photos there is mould/damp etc.

I saw some shockers when we were looking (not just decor wise) only to find out that they had gone for 5k over the asking price.

I mean things like the roof and the rendering. Those houses were built that way, no felt etc. PIL just did theirs - 6k for a whole new roof which isn't the end of the world. To be honest, we are from Brighton and in my head I've got Brighton prices. I was surprised to find out they paid 6k.

The garage conversion worries me, building regs. We need to find out when it was converted.

We're in Dudley, West Midlands if anyone knows the area, quite close to town centre.

Op is it a natural slate roof or a modern tiled roof?

Slates are double lapped and every one nailed so they don't have felt under them.
Tiles would normally have felt under them.

If you are prepared to do the work I'd give a low offer but it could become a money pit. The owners will be glad to get it off their hands.

We keep talking ourselves in and out of it.

We moved up here in December 2019 and have been looking for somewhere to buy all that time and this was the only place that was okay. I've kept looking and no where has come up since.

It's just frightening how fast rents and house prices have gone up since we got here.

@Lockdownbear I don't have paperwork to hand at mo so I'm not sure. They don't look modern slate.

Re the owners they were very reluctant to take an offer. Went back and forth for ages, being told how disappointed they were and that they only took it eventually as the other people who offered had a chain behind them. So I'm not sure how much they want to get shot of it after that.

Which is why I don't think they will entertain a reduced offer.

If you don't ask you don't get.

I certainly would be reluctant to pay 12k more than survey value. Has it been on the market a while?

Have similar houses redone their render? I bet they haven’t.

I lived in a rendered rented 1930s house and we got mould to begin with. Once we’d worked out to leave an inch behind furniture on outside walls and to be more mindful of ventilation from the shower and drying clothes we didn’t have any more problems.

Previously we have bought a rendered 1928 house and currently live in a part rendered 1930s. No mould issues. Actually there was in the first in the loft until we started shutting the bathroom door while having a shower!

I don’t think it’s common for people to get their roofs felted or their render redone. I think it sounds over cautious.

It sounds like you would be able to sell on easily regardless of condition and you don't want to stay there long term anyway. You are stuck in the area for some years and renting something that isn't in much better nick? I would go ahead with purchase, update cosmetically/fix broken stuff but not do any work that does not scream to be done.

I'd ask for a reduction for major works. Personally wouldn't be buying it. Sounds awful.

Do not buy the house.

Even before you get to the survey, it's in an area you said you "hate". Madness to buy there in that case. I understand that you feel you're wasting money renting, but buying and selling houses is expensive. With stamp duty, agent and solicitors fees, mortgage interest, and all the other costs, there's a lot of money you don't get back. Buying a home is both a necessity and an investment, and if it's in a bad area it's a poor choice on both counts, you won't be happy living there and you might struggle to sell it and recoup your investment.

As for the survey, there is clearly a lot of work that needs doing, which is going to be costly and disruptive. You say you have an 8 month old, do you really want to be doing all that work with a baby who will soon be crawling and then toddling around? Presumably you can't afford to continue renting while the work is done?

If you are really determined to buy it anyway, you should get tradespeople to view the property and quote for the required work. Preferably at least two quotes for each job. Then add it all up, and subtract the total cost of the required work from your offer. The sellers might refuse and if they do you should walk away.

You sound very impatient to buy and get out of renting, but please think carefully. Renting does give you flexibility. If you buy a house you regret it may well be difficult and expensive to sell.

PP was right about your tenancy btw, you do not have to renew at the end of the fixed term - it will automatically become a periodic tenancy, meaning you will able to end it with one month's notice. The landlord might put pressure on you to renew for another 6 months but you don't have to do this, and if they want to end the tenancy themselves they would have to go through the lengthy section 21 eviction process.
england.shelter.org.uk/housing_advice/private_renting/options_when_your_fixed_term_tenancy_ends

Let the seller and their estate know the issues, both red and Amber and ask them to address the issues and provide guarantees of work undertaken. The selling estate agent has to reveal any issues to any new buyers which will affect any future offers. The normal process is for the seller to address the issues or reduce the price. They willl face the same problem with any new buyer.
No need for you to get estimates as this is their problem.
The mortgage valuation is often a 2 minute glance and a comparison of houses in the street anyway. They are for the banks guide only. The house could be near collapse but look ok. Go with the survey.