Is it wise to buy this one?

[Notsosureanymore]

Hi, I’m several weeks into a property purchase. It’s a lovely, old house that I’d want to be in for years, but this week my surveys have revealed damp problems and active woodworm. I’ve been quoted c£20k to address 1) contaminated plaster, 2) repointing of one wall and chimney and 3) treating roof timbers and replastering. I’ve also been quoted another £20k+ to fix various roofing problems (replacing a flat roof, guttering, damaged and slipped slates, chimney lead work, 2 velux windows). I paid for these two reports as conditions of my offer.

If the seller were to agree a £40k (> 10%) price reduction, I’d have cash savings of £18-20k max (I’m borrowing 90%, so that absorbs a lot of the proposed decrease). Even if the quotes are slightly inflated, I’m really stingy, and try and get involved in the DIY, I don’t think it’s realistic to move forward? I’d also have to pay for interim accommodation, and I’d still need to repaint and buy furniture afterwards.

I don’t want to waste any more of anyone’s time, do I need to back out? It’s taken me over a year to get an offer accepted so it’s heartbreaking (and I had a pre-mini budget interest rate), but I think deep down I now know it’s too much to take on.

If the project I'm buying now came back with that especially the woodworm I think I'd ask for more of a reduction.

If there a price you could pay? It's worth trying and if it's a no be prepared to walk.

I think I'd be asking for 60k reduction tbh as everything quoted will be 20% more.

From the sellers pov they are now stuck, either fixing the issues and re selling? Or selling to you.

How bad is the damp?

The quote for fixing might be people who scare you into thinking you need to do more than you actually do - do you know where the damp is coming from?

How stretched are you on the mortgage payments? If you’ll be able to save and do things bit by bit then if they agree a reduction and you really want it then maybe. But if you’re going to be at your limit financially then no - you will likely find other things that need doing once you’re in.

My personal view is that your finances are too right for such a house. Things will be worse than initially thought and will usually cost more in the end. Even with a hefty reduction, can you cope with that? I think I’d walk away (sorry).

I’ve fixed up several decrepit houses. If the budget says £40k, it’s too low for that list. You don’t have the margin here so I would let it go.

(It is too low because the kind of things identified will uncover other things once you get going)

What if more is uncovered as you go along. I think it’s a really tricky situation for you but I do think it’s best to walk away if you don’t think it will be feasible. That, or speak with the sellers and see how much they will reduce by. I’d say, like a PP has mentioned 60K min needs to come off the house price to cover what you have been quoted for the works and anything else that may pop up.

My brother has renovated a few knackered houses and bungalows. His broad rule is whatever costs look like being before you get into it, factor on that amount doubling. (It used to be 50% more but since Brexit and the pandemic trades costs have increased a lot so he now works on the principle of double.)

In reality, costs don't always literally double. But they always, always go up, and often by quite a lot. So you have to stress test your own financial situation to make sure you can do it.

So if you can afford to be 80k in the hole by the time you've worked through all the issues, crack on. Otherwise, I'd walk away and find something else.

As an aside, I'm impressed you managed to get a 90% mortgage approved in the current economic circumstances!

Normally I would say that some work is to be expected in an old house. However, this does sound quite serious and if you don't think the house would even be habitable while the work was done , then I think you should walk probably away.

Thanks for all the honest advice. I hadn’t thought to add a buffer to the quotes for the reduction, but I think I’m still too short on cash upfront.

The damp wasn’t picked up in the valuation but the cause is most likely salt contaminated plaster and the external condition of the building - I am glad they’ve not just quoted for a damp proof course because I think it’s much better to try and solve what is causing the damp in the first place.

I love old buildings but this one is sitting empty now, the problems will be getting worse. There are too many risks.

I was in a very similar situation 12 months ago!

Woodworm everywhere, multiple lots of damp, wall and chimney needing repointing. In my case the vendors wouldn’t budge. We pulled out and they resold. They did not disclose any of the issues (I know this as I since moved in a few doors down and have since met the buyer after me).

If it’s a good property in a sought after area then they will likely say no and hope some else comes along who doesn’t do as much in the way of surveys. If it’s not then you might have a chance.

Personally, I’m glad now that we didn’t buy ours and we are seeing the current owners struggle, which is awful. Everything costs twice as much as anticipated and new issues pop up all the time.

I would walk away, sorry.