Fire Damaged Property - would you consider?

[DevonshireDumpling1]

A property has come on the market in the local area - a 3 bed semi detached that was destroyed by a fire in 2023. No one died in the fire, but the current owner has since passed away (not related to the fire) and is being sold by their executors.

Property has been listed at offers in excess of £190k - other properties on the street have sold for £300k +

Now, if someone died in the fire it would be a no no for me, but I’m actually considering snapping up this bargain and renovating it.

Has anyone got experience of buying fire damaged properties and any advice that can be offered?

My concern might be is there going to be a lingering 'burnt' smell

Not quite the same but I had a house fire and the insurance covered the repairs. I’d be very wary of buying this property. When you say destroyed…how extensive is the damage? Where did the fire start? If there’s structural damage, I’d run a mile. My home was internal only. However, it still required a lot of repairs. All the windows had to be replaced (UPVC won’t clean). Walls had to be replastered and then painted. All soft furnishings had to be replaced (including carpets). Also are you going to need a mortgage? You may not be able to get a mortgage on a damaged property. Worth thinking about.

I’ve renovated many properties over the years in various states of dilapidation but never a fire damaged property - and to be honest, I probably wouldn’t neither.

This property doesn’t sound like a bargain at all. You’re paying £190k + for the carcass of the building, that will need to be completely gutted and renovated (if it is indeed structurally safe - it may well not be and it might be a demolition and re-build job.

Costs will vary depending whether the property is structurally stable and you can just gut and renovate or whether a demolition is required and you re-build. The costs will certainly outweigh the value of what it would be worth if you were to sell it based on the sold prices of nearby properties…. If it’s a forever home though then that investment could be worth it!

The fact that the property has been open to the elements for 2 years also is a concern…. Also the water damage from rain and also when the fire was extinguished.

I’m guessing you would be a cash buyer in this instance as mortgage lenders will not lend on a property in this condition.

The property is structurally safe - the estate agent confirmed that the current owner has had this checked before listing the property for sale.

I am a cash buyer and given that it’s not a mortgageable property, it restricts who they can sell it to. I was thinking about offering £150k and then spending about £125k on the renovations and then re-listing it at £325k. It’s been on the market for a few weeks now and no real interest.

The fire damage is really on the first/top floor and attic although smoke and water damage on the ground floor so would need gutting back to brick!

Can you inspect the attic? I walked past a house the other day that was having a new roof put on after a fire. The timbers were in such an absolute state. It was quite scary.

If you’re looking for a property to flip, I wouldn’t choose a fire damaged one with a max profit margin of £50k. The fire means there could be a lot of hidden issues that could easily eat into that £50k like water damage to joists/stairs, fire damage to the roof structure impacting the whole house, etc.

A house can be structurally safe but still have structural damage. Do you know who checked the property and what sort of report they prepared?

Our house here had a fire but was fully repaired and lived in for a further 15 years after.

When we have renovated rooms we still smell smoke! The last time was when we took out the lounge alcove fitted wood shelving. The back of the shelf and wall stank of smoke.

I wouldn't buy a non repaired house.

We actually didn't know about ours until I met one of the firemen that attended it. Started in the lounge with someone smoking falling asleep snd catching the sofa alight. They managed to get out and the fire brigade had to save elderly mother through upstairs window as she had been asleep at the time. Luckily, no one died in it. The owner did die here though, about 10 years later. We blame all the creaks on her!

Depending on the size of the house, a new roof may use all your renovation budget.

I wonder if it might be simpler to knock down and rebuild

Not a chance. You could need a new roof, new floor joists, all walls back to brick etc..... you won't get the work done for 125k either.

I think you’re under estimating renovation costs.

Our building costs (covered by insurance) was £35k. That was over 10 years ago and no damage to the roof!