Trying to buy a house in this area is near impossible

[the-e-dealer]

yes they are often quite good.

[PokerTime]

Jeremy Wrote:

-------------------------------------------------------

> I'm sure the IMF will be delighted to have EDF

> endorsement.

Indeed :D

[Sazzle30]

HI

I was wondering if anyone can help as a FTB I have no clue.

We had a full survey done on our potential property and the electrics needed looking at. We had this done and the place needs to be rewired. I wanted to go back to to the vendor to ask that the sale price be reduce so that it covers the rewiring however i have been told that if there is a change in the sale price we will need to get a new mortgage offer? Is this true? We thought the mortgage offer would stay the same and we can use the 'spare' funds for the re-wiring.

I don't really want to get a new mortgage offer as I am with Abbey and they took over 6 weeks to produce the first one! I can't get the vendor to pay as 1. He doesn't think there is anythign wrong with the property as he's never had any trouble (despite the report) 2. He's moving to Australia as soon as we complete.

We are already paying ?400k for a property I don't really want ot swallow this additional cost as we have have no extra money.

Any info from seasoned homebuyers would be most helpful

thanks

[the-e-dealer]

I never bothered to tell the BS on the occasions when I got a price change dont think the BS is too bothered they've valued the place and agreed you are good for the money.

[DuncanW]

Who has told you that you will need a new offer? If it's the agent or the vendor they're not really best placed to tell you that, so you should ask Abbey if that's the case.

I don't see why you would need a new offer. A valuation report has been completed by a lender approved surveyor and that is the figure that they are lending against surely, not the price you agree to pay the vendor.

Tread carefully either way. Vendors in the current market will feel that they are in position of strength and won't be inclined to reduce the price at a late stage in the sale. All survey reports tend to be quite pessimistic to avoid comeback. Is the current wiring a hazard or just in need of updating?

Good luck!

[Mick Mac]

Mortgage - I can see that the lender may want to have the same deposit:loan ratio as they agreed at the time of approving the mortgage and this could change if there was a significant change on the sale price (ie you keep the mortgage the same but you reduce your own funds by the amount of the price reduction).

But for a small change in price I wouldn't have thought you would need to tell them.

As for asking for a price reduction you could do it but you risk losing the property if the vendor thinks you are going to be a difficult customer and he thinks he can get the house under offer again at the same price quickly with another buyer.

[Sue]

House in Ulverscroft Road:

Sold for ?630,000 on 24th Feb 2014

Was in need of "improvement". Improved.

Now on the market for ?975,000 (sic).

http://www.zoopla.co.uk/for-sale/details/33255606

Would like to say someone is having a laugh, but sadly they probably aren't.

Lovely astroturf in the back garden, by the looks of it.

ETA: And the lock on the front door has been put on crooked :))

[Jeremy]

You don't need a new mortgage offer. The bank needn't be any the wiser, the "official" purchase price should remain the same. Your solicitor should arrange for transfer of funds and for the amount to be deducted from your final settlement.

[Jacqui5254]

I agree with Sue.

Unless the house details say 'newly rewired' I think you sometimes have to take a property as is.

How about asking the vendor to go halves and this financial arrangement can be factored in by your solicitor to take place at completion?

Then you don't have to go down the 'reducing the offer' route, the vendor might feel more inclined to say yes, and you have a contribution to improving your property which, in return, will increase in value for YOU to benefit?

The vendor might be seen to be in a position of strength but he might not want his emigration plans spoiled by a such a sum of money.

[Jeremy]

Sue Wrote:

-------------------------------------------------------

> House in Ulverscroft Road:

>

> Sold for ?630,000 on 24th Feb 2014

>

> Was in need of "improvement". Improved.

>

> Now on the market for ?975,000 (sic).

>

> http://www.zoopla.co.uk/for-sale/details/33255606

Loft conversion + cheap and cheerful refurb... 90K? 345K gross profit... woah.

Do developers have to pay stamp duty AND income tax?

[Loz]

Jeremy Wrote:

-------------------------------------------------------

> Do developers have to pay stamp duty AND income tax?

Since the latest budget they have to pay stamp duty if they bought it as a company.

They would also pay corp tax on profits. Plus, unless they bought it privately and lived in it, they would also pay CGT.

[Jeremy]

Sorry yeah I meant CGT and income tax. Seems like on hell of a profit regardless. Still... easy to make money in a rising market.

[Mustard]

It's also on the market to rent for ?2700 pcm.

[Carrie]

If the price of a property changes then the lenders do need to be informed - if the change in price does not push the mortgage over their accepted loan to value ratio then they would probably not change the amount that they were lending you but they are likely to issue a new mortgage offer showing the reduced price. No solicitor would agree to proceed with a reduced purchase price without telling the lender! Abbey would normally get a reduced offer out to you within a week.

The other way round it is to get an allowance from the seller to cover the cost of the works (i.e you pay over less on completion but the purchase price on the documents remains the same) but this would also need to be declared to the lender and unfortunately, in my experience, Abbey normally refuse to agree to allowances so in your case you would need to try to get a price reduction if the Seller was willing to negotiate.

[Sazzle30]

Thanks everyone

I was advised by my broker and solicitor that we would need to inform the lender but as both have been shocking in their services I wanted to see what others had experienced.

The wiring does need to be done, certain things are dangerous - the cooker and shower extractor fan are wired into the mains without the necessary safety precautions.

I asked about receiving the cost of the repairs from the seller but that is classed as a gift so the lender would want them money laundered. It's all so much hassle but without getting a reduction we can't afford to do the wiring and if we don't get the wiring done then there is a risk to us and any claim we might need to make under our insurance.

I wish we had never started this

[LD929]

My guess is that renovations on that house were a lot less than ?90k. Here is the state of it before, and frankly, it doesn't look like in that bad shape... maybe looks are deceiving though:

http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=28463325&sale=999139&country=england

[Otta]

What number is that house on Ulverscroft? Jusat wondering where abouts it is.

[Otta]

I just had a look at my area on zoopla, and even here in Penge, 3 bed terraces are on the market for ?600k+

[egoode]

Sazzle30 Wrote:

-------------------------------------------------------

>

> The wiring does need to be done, certain things

> are dangerous - the cooker and shower extractor

> fan are wired into the mains without the necessary

> safety precautions.

>

> I asked about receiving the cost of the repairs

> from the seller but that is classed as a gift so

> the lender would want them money laundered. It's

> all so much hassle but without getting a reduction

> we can't afford to do the wiring and if we don't

> get the wiring done then there is a risk to us and

> any claim we might need to make under our

> insurance.

> I wish we had never started this

Every place you look at is going to have something that needs to be done in it and none of them will be completely perfect (even new builds). What you need to decide is if you can either live with it until you have the money to do it, do some of the work yourself to reduce costs, or walk away.

I'm not surprised the vendor is not willing to drop the price as he could probably get more now than you offered and not everyone will bother to get an electrical survey so is unlikely to cause another sale to fall through.

For a rewire depending on the size of the property it can range from ?3-5k and it's mainly the labour costs you are paying for the best way to reduce this is to actually do the most time consuming task yourself which is putting in the new wires and then just get an electrician to hook everything up. Have a look online it's not particularly hard to do and will save you a lot of money on the rewire.

[Sue]

Otta Wrote:

-------------------------------------------------------

> What number is that house on Ulverscroft? Jusat

> wondering where abouts it is.

xxxxxxx

Sorry, can't be arsed to walk down the road and look at the moment :))

It's at the North Cross Road end on the left hand side as you come from North Cross Road, a few houses down.

It currently has a Winkworth "for sale" board outside and scaffolding.

It used to have a TV in the living room which appeared to take up most of the room :))

You can now see the (apparently) astroturfed garden through the window. Not that I'm nosy at all :))

[Sue]

Jeremy Wrote:

-------------------------------------------------------

> Sue Wrote:

> --------------------------------------------------

> -----

> > House in Ulverscroft Road:

> >

> > Sold for ?630,000 on 24th Feb 2014

> >

> > Was in need of "improvement". Improved.

> >

> > Now on the market for ?975,000 (sic).

> >

> >

> http://www.zoopla.co.uk/for-sale/details/33255606

>

> Loft conversion + cheap and cheerful refurb...

> 90K? 345K gross profit... woah.

>

> Do developers have to pay stamp duty AND income

> tax?

xxxxxx

To the best of my knowledge (as told by an estate agent) it had previously been divided up in a strange way to have five (I think) bedrooms.

It now apparently has four.

I don't think there's been a loft conversion but I may be completely wrong as there has certainly been scaffolding up.

Somebody's certainly made a quick and massive profit - assuming of course they get ?975k for it, which seems absolutely ridiculous to me - loft extension or not, these are small terraced houses with tiny back gardens and virtually no front gardens at all.

[Sue]

LD929 Wrote:

-------------------------------------------------------

> My guess is that renovations on that house were a

> lot less than ?90k. Here is the state of it

> before, and frankly, it doesn't look like in that

> bad shape... maybe looks are deceiving though:

>

> http://www.rightmove.co.uk/house-prices/detailMatc

> hing.html?prop=28463325&sale=999139&country=englan

> d

xxxxxxxxx

I don't think that is the same house.

ETA: Oh sorry, it does seem to have the massive telly. I was looking at the house on the left of the picture, it is the one on the right which used to have a blue door.

[Loz]

Mustard Wrote:

-------------------------------------------------------

> It's also on the market to rent for ?2700 pcm.

That is a gross yield of 3.5% on a value of ?975K. Who'd enter the BTL market at the moment?

[Sue]

LD929 Wrote:

-------------------------------------------------------

> My guess is that renovations on that house were a

> lot less than ?90k. Here is the state of it

> before, and frankly, it doesn't look like in that

> bad shape... maybe looks are deceiving though:

>

> http://www.rightmove.co.uk/house-prices/detailMatc

> hing.html?prop=28463325&sale=999139&country=englan

> d

xxxxxxxx

Yeh sorry, when I said in need of improvement I was referring to what an estate agent had told me about the previous apparently weird configuration of bedrooms.

[Sue]

Loz Wrote:

-------------------------------------------------------

> Mustard Wrote:

> --------------------------------------------------

> -----

> > It's also on the market to rent for ?2700 pcm.

>

> That is a gross yield of 3.5% on a value of ?975K.

> Who'd enter the BTL market at the moment?

xxxxxxx

But the present owners didn't pay ?975k for it?

Though maths isn't my strong point :)