Buying the house next door? (Semi)

[RoastedCauliflower]

We’ve lived in our 2 bed semi for nearly a decade, but with 3 kids we’re bursting at the seams.

We know we need to move, but kids are settled at school and we wouldn’t be able to afford the next step up whilst still staying near school.

We will need to move to a different city in 3/4 years for DH’s job, so don’t particularly want to disrupt everyone now as well by moving to different suburb/school.

The elderly man next door (adjoining wall) has sadly just gone into a nursing home. DH and I are discussing asking his daughters if they would consider selling us his house.

Our tentative plan would be to do minimal knock through upstairs and downstairs, which would give us 4 bedrooms and office space. And then when we move in 3/4 years, we can either sell it as one big house/project or potentially put walls back up and sell it as 2 houses. Or perhaps even sell one house, and rent out the other.

Is this a bonkers plan, or do you think there is some sense to it?

We have savings/inheritance which would mean we would be cash buyers (hopefully).

Are there many reasons why this is stupid?

I don't understand how it will be cheaper to do this than but a 4 bed in your area?

If you know you will have to move in 3 to 4 years then you will have the hassle of selling two properties in order to buy another. So creating a double chain with all the potential to fall through unless of course you convert it properly to a 4 bed and can get all your money back. Are there really no 4 beds in your area that you could afford if you sell your current house?

It should be possible to get planning permission to turn 2 into one (even in London most councils allow this but not more than this, eg 3 flats into 1). That is the only way to avoid double council tax and utilities and should also avoid the 2nd home stamp duty as you won’t be a second home (get proper advice on this point!). Then reverse the process if/ when you want to sell them as 2. I actually don’t think it’s that much hassle for 3-4 years and have done both turning 2 flats into one and two houses that had been joined as one back into 2.

Also get advice on the tax point if you sell them as 2…I think as one won’t be a principal private residence at that point so any profit would be subject to capital gains tax.

fruitbrew makes a good point on the potential headache of selling two properties at the same time.

From your comment about adding £9k stamp duty I'm guessing we are talking about a house worth around £260K.

Can you not buy a 4 bed for £500K? Or a good sized 3 bed for a bit less that would suit you for the next few years, perhaps something you can add value to.

Or could you convert your loft to make an extra bedroom?

Thank you all, so much to think about.

Hardly any 3 or 4 beds come up on this catchment - a 3bed came up that was 725, but was 0.3 away and in a different catchment.

We tried the attic - it’s too small apparently. So we were quoted 150k to make it useable - hard to see that’s worth it for just an extra room?

Lots of good points re tax etc which we need to look into, thanks

I wonder if you have to pay 2nd home SDLT if you are essentially turning it into an extension of your current home?

But that would put paid to the cunning scheme for both to have an address each and get CT discount.

Can you do a loft conversion in your current house?

We did this a few years ago. Planning was no problem as they were keen for more diverse housing in the area. We just applied to council tax rebanding ( though it ended up being the same as one of the houses). We joined the two heating systems and had meters removed from one cellar. We have a doorway on each level. Kept all the doors and staircases. It works well for us and has enabled us to stay in an area we liked but which has very few houses with more than two bedrooms.