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.

Yes, we can't stand the area but unfortunately, we can't afford to buy anywhere we do like. We saw buying here as a stepping stone to moving on somewhere better in a few years. Dh family are all here. At least we'd be on the bottom rung of a ladder we could try and move up. I'm 40 now and renting is wearing thin.

But the glaring fact is that we will soon be priced out of renting here and I don't know what the hell to do then.

We moved here so we could actually save money each month to put towards a deposit which has gone well, where we were before the rent was so high we couldn't save a penny. We managed to negotiate jobs to wfh (before covid), so we were in a good position with secure jobs at a higher wage than we would have in this area. But that saving each month will be eaten into with rents here increasing until we're in almost the situation we were in before.

We've rented for 22 years now (since 18). We've had countless landlords sell up, we've had to move multiple times. It's expensive to move when you rent as well (although not as expensive as buying/selling). We've had some awful, awful landlords in our time too. And sitting here paying so much more for rent than we would be on a mortgage is a sore point.

There is so much to weigh up.

I don't want to go into the reason of why we have to stay here for a while as they are quite depressing and out of our control really. It makes sense to be here for a few years, it's the sensible option if not the option we'd prefer.

Thank you so much for all the responses by the way - it's really helping me to try and see both sides.

Ok so you want/need to buy a house in this area.
I still think you should keep looking and not buy that particular house, unless you can negotiate a significant reduction (to cover the costs) and can face the disruption/stress of the work.

I think I would ask for a reduction based on survey findings, see what they say, and then go for it.
The house is being lived in at the moment so it must be reasonably ok.
If you need a bit more convincing have a look at The Frugality on Instagram (if you don’t follow her already) The state of the house they bought has to be seen to be believed, as does what they’ve done to it (over a number of years admittedly) as and when money became available and with a new born and more recently a second child. The before and after photos of the renovation are incredible . The house you are thinking of buying sounds like a palace in comparison and providing the electrics are safe and the property can be made watertight I don’t think you would be making a mistake in agreeing to buy.

Right so who do you recommend we speak to first?

Solicitor about the survey points that we need the vendors to clear up? (Electrical certificates, information on the extension).

The agent?

Some people have said for us to get quotes, others have said it's up to the vendors.

I'm a bit lost on where to start. Everyone I've spoken to gives different advice.

Did you see any obvious signs of mould on the walls? If not I’d not be worried about the rendering, but keep airing the rooms. Did you see any signs of leaking roof yourself? Our house doesn’t have felt and has the occasional drip, but it’s never affected any of the rooms below. I’d personally get an electrician to give an opinion on the electrics (although most of my house was wired before 2004!) and have a builder look at the flat roof perhaps. I’d ask for indemnities for the garage conversation. If you’ve got the money to do some of the work and aren’t the type of person who needs to live in an immaculate house I’d go for it. The improvements over the next seven years will give you equity and it has to be better than renting. But we live in a half finished old house, and have done for a decade, so I’m probably not normal!

I don't think most of those things sound that bad, it's an old house with things in it that are old (windows, electrics, roof etc) they will need replacing at some point but presumably the price of the house reflects that is old and a done up or new building would cost more? I would have an electrician check the electrics and a roofer check the roofs to see if they actually need immediate replacement in which case I would try and negotiate but if not I think this comes with the territory of an older house that needs a bit of maintenance.

If the mortgage is cheaper than your rent would that leave a bit of money in your budget to save and do the house up over time? You'd then have equity from paying of your mortgage debt and increased the value of the house.

I didn't see any mould - but I would assume they had cleaned it off before we viewed.

It's an odd house in that I know it sounds like an absolute shit tip, but it's not. Some of the paint work is a little tired, but it's very light an airy, mainly white. Carpets were all light and in good condition. The bathroom and kitchen are modern.

You could move in and no do anything cosmetically for a while.

Most houses here are either these 1930s houses or Ex council houses on estates. They tend to be on the cheaper side around 160k.

The 1930s ones are all around 175. Although, there have been some immaculate ones on for 190. Those are three beds. The 4 beds (which this one is with putting back the wall to the smallest bedroom) are 200k.

This is a big house. Large though sitting/dining room. Another extension off that which is being used as a dining room. Biggish kitchen, utility, downstairs loo and the garage converted to a large bedroom.

So in comparison to a lot of the other houses on for 175k, the square footage is much bigger. Round the corner there is another three bed 1930s house on for 175k which is immaculate. But, it's only got one small sitting room and a kitchen diner. No other rooms downstairs, no garage.

So I do think it was fairly priced for the size and the cosmetic work that needed doing to it.

New build are around 180k for a three bed and obviously much smaller.

It sounds like it’d be ok.

It’s very difficult to wash serious mould of a wall without still seeing signs of it afterwards (believe me I had a very mouldy wall in my bedroom. We cured the issue but until we repaint you can still see where I’ve scrubbed it off).

* Yes, we can't stand the area but unfortunately, we can't afford to buy anywhere we do like.*

Stop. Stop right there.
Abandon this house.

You have got sucked in to idea that buying is preferable to renting in every scenario.

This is not a suitable house for you.

@Honeyroar

It sounds like it’d be ok.

It’s very difficult to wash serious mould of a wall without still seeing signs of it afterwards (believe me I had a very mouldy wall in my bedroom. We cured the issue but until we repaint you can still see where I’ve scrubbed it off).

I'm assuming the mould is like what's in this house. We use a mould removal spray to clean it off.

@Egghead81

* Yes, we can't stand the area but unfortunately, we can't afford to buy anywhere we do like.*

Stop. Stop right there.
Abandon this house.

You have got sucked in to idea that buying is preferable to renting in every scenario.

This is not a suitable house for you.

I know what you mean but the price of rent is increasing fast. I know people will say move to a cheaper area, but this was our cheaper area.

The landlord already discussed that there would be a rent increase in line with the area. Another increase after that would make it pointless to be here. And to find anywhere cheaper we'd have to up sticks again and mover further north which we can't do at the moment.

We'd be paying £300 less a month on a mortgage.

To put the rent thing in perspective, we looked at a few places when we moved here in December 19. Quite a few of them were up for rent again last December/Jan and they were all £100-£150 more per month than they were the previous year. It's honestly crazy.

I wouldn’t do it.
The house sucks
And you can’t stand the location.

See the extra rent whilst you carry on looking as the extra that allows to you live in a home and area you actually like! This is your life and your family’s life, every day. Day in and day out

And we can't afford to rent in an area we do like. So a bit shafted really. And I don't want to go dipping into what we saved to cover rent.

No of those things sound too bad or out of ordinary for 1930s houses, I’m sure ours needs most of those doing. None of sounds like it would need doing imminently apart from the electrics. Does it smell damp? But it’s sounds like you don’t love the house enough to see it as a long term project.

Can you post a link to the house so we can see what it looks like? From what youve said it is a complete doer upper and because of that i wouldnt bother asking for electrical certificates (it obviously needs re-doing) nor woukd i bother about building regs for the garage - was probably built when these things weren't required.

If you can afford to do work to the house over the next few years i would buy it. Just get roof fixed first IF it is leaking.

@Egghead81

I wouldn’t do it. The house sucks And you can’t stand the location.

See the extra rent whilst you carry on looking as the extra that allows to you live in a home and area you actually like! This is your life and your family’s life, every day. Day in and day out

We are renting in the area we don't like already. We can't afford a nicer area or we'd be back to not saving anything again.

It's not a terrible area, Dh grew up here. But it's just not for us. Like I said though, we have to be here for the next few years.

We don't have the luxury of living in a area we love anymore, we can't afford it.

This (this house or another in this area) would hopefully be a stepping stone to be able to move to an area we like better in the future. But that won't happen while we are renting.

During lockdown did you carry on paying full rent?
If you have built a good relationship with you LL, and a very good and reliable tenant, that’s worth a huge amount and so I’d be pushing for flexible contract and rent not to increase.

So you’re renting in an area you don’t like?
And about to buy a house you don’t like in an area you don’t like?

In this scenario, I’d buy in area I love, something that is too small or not ideal ie within budget because it doesn’t meet requirements.

@Dingleydel

No of those things sound too bad or out of ordinary for 1930s houses, I’m sure ours needs most of those doing. None of sounds like it would need doing imminently apart from the electrics. Does it smell damp? But it’s sounds like you don’t love the house enough to see it as a long term project.

I actually really like the house. If it was in a different location, I would snap it up and stay for years doing it up. There is massive potential to extend, re do the whole downstairs if you wanted to stay. If I could learn to accept or love the area it would be an amazing long term buy.

If it was where I'd lived my whole life before moving here, it would be upwards of £600k.

No, it didn't smell or feel damp. Believe me, I know damp. We've rented some shitholes that should have been condemned in our time I can smell it a mile off.

@Egghead81

So you’re renting in an area you don’t like? And about to buy a house you don’t like in an area you don’t like?

In this scenario, I’d buy in area I love, something that is too small or not ideal ie within budget because it doesn’t meet requirements.

Honestly, we couldn't even afford a one bed flat in an area we like. I have a teenager, a young child and a baby.

Growing up and living in an expensive area, buying was never on the cards there.

Done the opposite of what we "should" have done in life and made a lot of mistakes, but it is what it is now.

We could have continued living where we were but we wanted to try and get a bit of stability. Even if it meant starting out somewhere that wasn't ideal.

@Egghead81

During lockdown did you carry on paying full rent? If you have built a good relationship with you LL, and a very good and reliable tenant, that’s worth a huge amount and so I’d be pushing for flexible contract and rent not to increase.

Yes we paid full rent. Thankfully our jobs are very secure (for local authorities, they don't pay a lot but are incredibly flexible, and secure).

Is the choice either
Very downside ideal area
OR
Shit area you can’t stand but you can afford?

Is there nothing at all in the middle?