Forced to sell house mid major renovation

[piffle123]

Does anyone have any experience or advice on selling a property mid major renovation?
Obviously not ideal but may be only option before we completely drown financially.

Bought an ugly, run down bungalow in a desirable village 4 years ago. Lovely position, amazing views and huge garden.
Plans were drawn to literally double its size and work started end of 2020, with DH doing much of it in his "spare time". He's not a builder but in the wider construction industry and we have done similar before. Estate agent has said will be worth significantly more than we paid for it once finished but that it needs to be a high finish.

This time however the economic situation has hit hard, like it has for so many other people. He is trying to keep his business afloat - no time or money to do anymore on the house.
Already spent £100k and Still needs at least £100k worth of work doing, shell of the extension is there but leaks everywhere, no kitchen or bathroom fittings. Concrete floors. Meanwhile existing bungalow full of damp and literally falling down around our ears.

I've had enough and just want out - can't see any point in the relatively near future where it will be finished or even remotely liveable.

I don't know who would want it in its current state let alone recouping any of the money we've spent.

If it has no kitchen or bathroom is it even mortgageable? If not then you are really limited to cash buyers only

Unfortunately it will probably have to go to auction. Can't you put a cheap bathroom and kitchen in just to make it mortgage able?

If the shell of the extension is up why are there leaks everywhere? Has it been done to standard with relevant building regs?

Unfortunately most builders won’t take on a half-completed project as they don’t know the quality of the bits that have already been built, therefore it will be a very hard sell and you aren’t likely to recoup your costs. The only thing that might mitigate is the significant increase in house prices over the last 4 years

we do still have a kitchen and bathroom in the existing bungalow thank goodness.
The leaks are where the extension roof meets the bungalow
Building control have been involved all through the process to date

Well why not ask local estate agents? They might have someone willing to buy? At least you will know where you actually stand.

Yes I will. Just thought I'd see if anyone had any advice.
Like the PP said the increase in the housing market might work somewhat in our favour and we did buy the bungalow well below market value

Sorry to hear you are having to sell mid renovations. Definitely speak to an EA as the value could have risen in 4 years plus bungalows are always desirable. Good luck

“If you’re going through Hell, keep going”.

You need to finish this renovation or at least get a lot further through it unless you are prepared to lose a lot of money.

I'm so sorry to hear that you are going through this. We do wonder if we are going to be forced into this same position but are clinging on and desperately trying to get things sorted by Christmas so that we can go on the market in the spring.

What are your options if you do need to stay put? What would be the options if you needed to sell and wash your hands of it?

Hi, so sorry to hear the situation you are in. Whereabouts are you?? Longshot but we are looking for a bungalow that we could do significant work to

Does your DH have any people in his work network who might be interested in buying or taking it on in some way?

Do you have the money to finish it? I'd be getting trades people in. Your dh doesn't have the time to do it.

@piffle123 there will be plenty of developers who would want it.. find out how much land is worth in your area and price accordingly.

Obviously a developer will be looking to make profit, so if you could atleast get all your money back that's a start. However anything more than that is.... well, up to how much it's worth.

I think at the minimum you need to bite the bullet and get it water tight, then a big tidy up, dispose of rubbish, stack any building materials. Clean up any mould and get a dehumidifier and keep air flow. Get works signed off to the stage that has been reached. Get some quotes from trade for cost of finished work or via quantity surveyor, this will give prospective purchaser and yourselves an advisory cost. Then seek some estate agent valuations for the current market.

It will appeal to builders I would have thought, especially at the current state, some estate agents have special relationships with builders so you need to find a good estate agent.

If you price it correctly it will sell. Trouble is, you might not like the price. I should forget about recouping your costs.

Unless you want to take a massive hit on price, move heaven and earth to finish it. Anyone who buys a half finished project will assume that everything needs re-doing and offer a price to take that into account. Plus at the moment people are very wary about taking on projects because they know that builders are like hen’s teeth and materials cost more than previously. Is there no way if you rejigged your husband’s work, or both worked together you could finish it in evenings/ weekends? Could you ask family/ friends to help out, or pay someone to do the major stuff like the roof and then you finish it off. If you made the bit you are living in nicer would that help?

A friend had to do this when she split up with her husband half way through a huge renovation project. It was on the market for years, despite this being when the market was strong. I guess it was overpriced. You will undoubtedly take a big financial hit. I’d grit your teeth and see it through if you possibly can.

Get it finished, never mind to a very high standard just get it watertight and painted white but don’t leave it half done.

I was in a similar position along time ago and I took on a second job to get it done.

i think your market would be be much more limited if it’s half done. One down the road from us which was half done was priced lower. It. didn’t sell, and then had a reduction (now listed as sold). Even though ours probably needed a similar amount of work in the end, it looked live-able and made a good first impression. Not great for us but good for the vendor. Most the people I know who bought, wanted a full project or bought with the mind of decorating one room at a time while living there. Might be harder to see that if it’s part way through. I’d also question why it was stopped part way (ie building/ structural complications, of if they stopped because of funds, how many shortcuts were taken/ done cheaply by the end etc)

BUT looking after mental health is important too. So it might be better to take the hit on the price (if you can) for the sake of mental health

If you need to sell quickly, auction is your best bet. I was speaking to an Estate Agent recently (East Anglia) he said properties are taking longer to sell, and people are needing to market realistically price wise, many buyers are waiting to see what happens with the economy. It doesn’t sound like you can wait. Good luck OP.

I'm so sorry things have come to this. If there is any way you could face sitting tight, I suspect you might lose less in the long term, but it sounds like you need at least to get some valuations so you know where you stand right at the present moment. And aget might also tell you what you might recoup your costs on in terms of just tidying it up.
There might also be some things that are not expensive you could do about the damp in the old bungalow bit (I have just such a one). Taking off wallpaper and painting with breathable paint might help. Repairing gutters/downpipes, even if the repairs are makeshift, just to keep water away from the walls. That sort of thing.
I wish you well.

It doesn't need to be top spec. The only people who would be interested in a half finished renovation property would be a builder or property developer hoping to turn a profit. For them to make a profit in this market you will need to price it very low for it to make sense. You are better off putting in a smart clean budget bathroom and kitchen. You will lose less money using a cheaper finish Vs leaving it.

Anyone who buys a half finished project will assume that everything needs re-doing and offer a price to take that into account.

This is so true. Especially with the leaks, they will assume what has been done is defective and needs to be demolished and rebuilt properly.