renovating a derelict property

[Luther Blisset]

Need to borrow big money to renovate a house. Redundant atm.

£20k should cover it.

House will be worth £160k when done, £100k as it stands. What do?

Tried a few avenues, including equity release on another property

What do? would an investor be a good idea or am I leaving myself open to getting fleeced here?

[Luther Blisset]

Thanks for the replies gents.

£100k is pretty conservative tbh, I don't want to mislead.
I've been quoted £29k from a "expensive" guy.
£15k just to tart it up for a quick sale.
It's in the midlands, btw. Not the strongest market really.

RE: Derilict: Electrics good, need certification though.
Central heating need a total renovation.
Most double glazing needs replacing.
Roof 90% solid. Plastering needed throughout, quoted £2600 for that.
Needs new kitchen and bath, and the garden tidying up.
I can graft but I'm no skilled operative.
A few other bits too like new doors, balustrades, skirting, carpeting etc.
All ads up...

[Luther Blisset]

megaphone said:

Do you/will you own the property at £100K? With no mortgage or borrowings? Do you own another property? Outright or mortgaged?

100% outright.

tleefox said:

I honestly cannot see you getting all of that done for £29k.

Looks like it ATM. Like I said, agency worker now, patchy wage slips.

Just wondering if there's another way to release funds to get it done.

[Luther Blisset]

eldar said:

Electrics £500 if actually OK

Heating £2k to £3k

Roof £3k patching

Double Glazing 300 to 600 a window say £3.6k

Plastering £3k

Basic Kitchen & Bath £5k

Other fettling £5k

£2.5k contingency.

Doable to a basic standard, I'd say...

Yeah that's £25,600 according to my sums. so close like I thought,
like I said I had a £29k quote for a good standard.
Main issue is the damned funds
Will be consulting an IFA to see what my options are.
I've got a few quid put aside, but not quite enough to get the job done unfortunately

[Luther Blisset]

eldar said:

Depends on why you are doing it up, and if you have the skills to project manage or do the renovation. Might be better to flog the place as is, rather than risk cost overruns or the like.

I'm beginning to think like that as you're not the first to say that which might be a sign lol, but what does £100k get you these days? If I can get this done up £160 gives me some better options, that's all.

PS, thatnks to to you and all other contributors thusfar, lots of food for thought.

[Luther Blisset]

jonnydm said:

Are there not bridging loans for private developments for this sort of thing or will they not consider you?

I've talked to an IFA and he's not very optimistic. Council couldn't lend that much anyway, and they're not into buying a 20% stake to get this house occupied for their whatever reason (tight budget probably). Rock and a hard place here, was just wondering if the PH massive could come up with some novel out of the box thinking here, but it'a a catch 22.

98elise said:

If its not in a great area, why do you think you will get £160k when done up?

If it is worth that finished I think you would get a reasonable sale price in an auction. It costs nothing to get someone round to give you a rough guide.

If you've not done any property refurbishment before then everything costs twice as much as you think, and takes twice as long .

Fair point about me being new to the refurbishment side.
Would like a nice 2 bed new build to move into at the end though that's all, I'm not greedy

The £160k price comes from the neighbours selling their identically laid out house for that much not long back, but their's was a very good example tbf.

Edited by Luther Blisset on Tuesday 15th July 23:52

[Luther Blisset]

jonnydm said:

If you are sure of the gains, worth trying someone like these people.
http://www.acceptances.co.uk/case-studies#bridging...

This isn't a recommendation for them, they just came up on Google!

Didn't even know such a thing existed lol. Bookmarked and will keep googling along these lines.

You guys are pretty damn god when you're not trolling