First time buyers

Hi Grammaretto. I think the question is, would they get a mortgage on a run down property?

My friend's daughter wanted to buy a run down cottage but couldn't get finance for it.

I think the idea is great if they are that way inclined and can build a lovely home from a shell.

Good luck to them!

What did your friend's daughter do eventually?
There must be many young, or even not so young, people in similar situations but only big developers can afford to buy outright.
It seems a shame as lovely historic places are then lost forever, and all the young ones can afford are new builds.

There's a Buildings at Risk register in Scotland but it isn't an estate agent for property. There are some pictureque places listed.

www.buildingsatrisk.org.uk/

Apart from location and condition of property, if they are first-time buyers they really need to look at isa savings accounts designed to add 25% to their savings pot. December sees the end of this offer so no -one considering a first time mortgage in the near future should delay their application.

The first question is: what is their skill set. To successfully do up a house on a budget the owners have to do a lot of it themselves. If they are not prepared to tackle work like fitting kitchens and bathrooms, doing plumbing, plastering and carpentry, then forget it. The second thing to do is get a through survey, if they do not have the knowledge themselves.

We are serial house renovators and the key to it all has been that DH is one of those people who understands buildings, he is a marine surveyor, and such skills are transferable and he can turn his hand to anything. He has rewired two houses , one to French regulations, one to British and had them inspected and passed by professionals with out alteration, He has fitted at least 6 kitchens, done bathrooms, knocked walls down, built walls etc etc. I am totally cack handed so I am the navvy and decorator, garden clearer and replanter.

Match your project to your skills, There are a lot of perfectly decent houses for sale that have been lived in for 30-40 years by the same person, probably an executor's sale, where there is little wrong with the house structurally, roof and walls are good electric wiring fine, even central heating OK but the decor is tired and old-fashioned and the kitchen and bathroom need a refit and the garden needs weeding. Houses like this can be lived in quite satisfactorily while the house is gradually renovated as time and money permit and are good starter projects.

I suspect that this is the kind of property your DD and SiL should be looking for Grammaretto

Buildings-at-risk, are definitely for the experienced. They are usually Listed Buildings, with all the complications of complying with Conservation rules etc. They will also be very difficult to mortgage. A decent standard tired looking house should be mortgagable. A Building Society on occasion will put conditions on it. We once had to rewire the house within 6 months and have a woodwork survey, but DS bought a flat in a modern well maintained block, where the internal condition was dreadful (think elderly man sitting in it for 10 years chain smoking and never opening a window, or doing much cleaning) with our mortgage problems. It took three weeks to scrub, clean and paint, a new kitchen and bathroom were fitted in months plus new storage radiators. The value increased by 50%. Total cost in current terms, comfortably under £10,000

At risk register shows a disused church in Galashiels!
Good location!

Thank you MOnica for your insights and for advice. I will definitely take that with me and pass it on, and the 25% isa savings offer mcem thanks.

1 Location

2 Get a survey done first before purchasing

3 Do the usual searches - what is in the countryside now could be surrounded by a housing estate or worse before you realise

4 Be careful if it is listed as trying to get permission for renovations could be agonisingly slow or totally refused.

DH and I have renovated two houses, I was the general labourer and he has the skills; when we have had extra building work done eg extensions, he has sub-contracted it oit as he knew exactly what was to be done.
He is still itching for another project, ie building from scratch but I think we are too old now!

Before getting wooed by clever photographs etc. The first thing to look at is the location and the floor plan.

A house that can be easily extended is always preferable.
Look to see if neighbours have extended or gone up in to roof space, if so this has set a precedent and planning is hard to refuse.
A house can be extended on building regs if it is within a percentage of the existing footprint.

Adding a garage, bedroom or conservatory can really add value and make a home more practical.

I would advise to look for a property that is dated but ok to move straight in to.
Work can be done with due thought over a period of time.

Neighbours!! I once was ready to purchase a property to let in a market town close to my home.
I went to the local police station and asked the desk sergeant about the street.
He told me there was a notorious family two doors down who were serious trouble. I appreciate this would not happen now but local knowledge is so useful.

we did similar at their age, husband was a structural engineer who was also on the rise at work with all the responsibilities that entailed. We had 2 children under 4 and the property was 1750 rural and isolated. Don`t underestimate the stress of it all, the fact that every precious family moment was taken up by essential renovation. We did not look to upgrade, just to bring to a good living standard.

We never had time or money to go out, there were many worries about tradesmen, those that we could afford. Building control was a worry. Exercise and recreation went out the window and result was that my husband became ill, all that stress plus all the stress of having to do those business things that need to be done if you have ambition. Ok we were young but isolation was also too much, having to drive everywhere. We sold at no profit and moved to find a standard of living that we could afford. We put it behind us but that stress was truly dreadful.

Yes, it is a consideration when you have young children, not just putting everyone's lives on hold and having no money to spare for their recreation but the dust and dirt etc too, and living in a building site if the renovations are extensive.

We had to do that, bit by bit, when our DC were small because it was all we could afford but I'm not sure I would have done it had there been a alternative.

I do wish it was easier for the young, fit, idealistic young ones to be able to finance their dreams.

So many really ugly (* personal opinion) new houses have shot up recently in our county and it seems almost criminal that the developers have no problem getting permission for these, in the greenbelt and on fresh green fields and in the main with no thought for the environmental impact. They all have garages so expect car ownership and there is no infrastructure such as schools, shops, doctors etc. It makes me angry. And they are very expensive which will lumber a young family with the need to be in thole to a large mortgage for ever.

That's very true crafty and Callistemon and we did a fair amount ourselves at first so know what it's like to live up a ladder..
Our DC want a forever home to live in and bring up their children in, they aren't looking to make a profit.

I think the best advice here is to find a shabby, older but not historic house which just requires redecoration and tlc. ooh and do it quickly before the isa offer runs out.

Do you know of any??

It's all new housing going up around here, both private and social housing.
Unfortunately nowhere near the Scottish Borders, sorry.

Mine's rather shabby

Callistemon

I think Martin Lewis is set to discuss above-mentioned isa at 8 tonight.

thanks I will pass this on. mcem.

She has found a bungalow, (on-line) with a horrid concreted garden but nice outlook; old person's decor but cheap. and very near a lovely primary school. It's been on the market ages.

The perfect first project. Do your DD and SiL have the skills and determination to do the project? It is hard work and can take much longer than planned.

Our DD has done it twice. DS and DiL wouldn't do it if you paid them. Yes, I said DS bought a run down flat, but he went off to India for three months while we did it up!! To be fair he helped DH get the living room carpet up and take it to the tip.

I don't know if they will go for this one but they are seriously looking.
Your DS was lucky to have such DP!!

Well if they have children they need to be near a school. People living in areas so remote that the house prices are low tend to have to drive all the time to get the kids to school - and as they get older, drive again in the evening to get them to their social events. So the hassle and cost of that needs calculating too.

I think a common issue is that people often under estimate the amount of work actually involved. So, if they do decide to restore, make sure they go in with their eyes wide open.

A run down property is usually more trouble than it is worth and will cost much more than they thought or can afford to repair.

They need to go along to their bank and find out what price range they should be looking at, whether they can get a mortgage and on what terms. Two young people, both presumably with good incomes and a young family certainly don't need the hassle of a do-it-yourself home, unless they absolutely love living in dust, dry rot and rubble.

IMO location is not everything - the running costs, rates and taxes on the property plus the interest on their mortgage are the things they should be looking at.

Renovated 3 properties over the years plus two for AC. You need to be realistic about what your skillsets are as inevitably what look like a little job turns into something a bit bigger and costlier. If your DD would be living in the property when the work goes on she will need to be fairly robust accepting mess, sometimes no electricity water etc. Delivery costs if materials can also be high in rural areas. And, the cost is always higher than expected. A full structural survey is essential if the property is in poor condition. You mention 2 GC, they will certainly add stress to a full conversion. The Borders has lots of property for sale and well below the average price, know of someone who gave up trying to sell after a year and rented out her house. Perhaps your DD needs to widen her search for location though do appreciate distance from towns etc can be an issue. Hope she finds her dream home.