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Showing results for tags 'refurbishment'.
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How are you guys buying by-to-let properties that need refurbing before it can achieve the expected rental income? When stress testing the deal, my broker will usually ask ‘in its current condition, what is the estimated rental income?’. If it needs a full refurb the answer would be nothing and so the lenders would refuse finance.
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Hi all, Because everyone loves a good floorplan challenge... We're looking to purchase this property as first-time buyers - the only downside is it doesn't have a bathtub! I'm looking to have one added in - either by renovating the current bathroom, or adding another bathroom. How would you add a bathtub to this floorplan? (Bonus points for some estimates on the cost as well) I've got some thoughts of my own, but will post those after others have shared... Looking forward to hearing your creative ideas!
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Hi Guys, I’m just in the process of purchasing my first property, it is a repossessed 2 bedroom flat so is in need of modernisation. I would say the flat needs a full refurb which would include a new kitchen, bathroom, redecorating, flooring and a new boiler. The surveyor said the electrics and plumbing seem to be fine but may need changing in the near future, so I was thinking to get this down whilst I’m changing everything else. I just wanted to know how much would something like this cost to be done at a good level. In my head I’ve budgeted for about £20k - £25k. Would be great to get some realistic cost from those who have done this type of work. Also if you know any good trades people that could do the job I would really appreciate it if you could forward me their details. I’m based in Croydon. I have attached the floor plan so you can get an idea of the size. You Thanks Charles
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Hi, I have seen this detached house in Gorsgoch SA40 9TE on John Francis website for auction, and I have seen this house, my question is that I haven't bought a house in Wales before are there any different rules? I know they don't have stamp duty but have a cheaper land tax but apart from that are there any restrictions? The house has a new roof and plans for a loft conversion (2 extra beds and a bathroom). Any advice? Thanks JL https://www.johnfrancis.co.uk/pages/auction_property?lid=160083
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Hi Would be grateful if anyone could recommend some good quality specialists for refurb work to be carried out. After the names of builders, roofers, plumbers, electricians and general handymen/women. Thanks in advance. -
Hi Does anyone have a recommendation for a reasonably priced wholesale spiral staircase supplier? Thanks in advance
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Hi All, Would be great if I can get some advice on the below quote: I've also attached the floor plan to add some context. In short, I've turning my flat which I'm moving out of into a BTL property, I've already converted the property to a BTL mortgage and moved the property into a limited company but it needs renovating before it can be let out to tenants. Apart from the double glazing windows which are newish 2-3 years old, everything else needs replacing as this is a very old converted victorian flat which is in need of full modernisation - No structural changes. It's probably been 15-20 years since any updates have been made to the property. I've estimated the work based on research to be around £35K-£40K including VAT with contingency of £5k-10K based size of the property and work required. I thought this was a very generous budget and was hoping to come a bit under this budget but I had a shock when I got a quote for £56K. I've put the breakdown of the quote below. From my side, the contractor is very experienced and does good work based on pictures I've seen and recommendations and I've got a good gut feeling he would do a good job and this would be the final price. However, I feel this is quite expensive based on my original expectations. I also received another quote for £36K but I feel things are missing from this quote and the cost would increase a lot. I am still waiting for other quotes but I think the question that I'm asking is: 1. Is the quote a realistic quote for the work required, if not, what be would be a fair quote? (rough estimate or range being in London, finger in the air type guess) for the size of flat and a full refurbishment required. 2. What information should I ask for to get a better understanding on the quote and to check if things are being priced up. 3. What strategy should I use to bring down the price of the quote if it's not fair. 4. Just any advice in terms of what I'm doing wrong or should start doing, would be much appreciated. Thanks again for reading or responding to this post. Floor Plan of Flat £56K Quote: £36K Quote: -
Hi All, Would be great if I can get some advice on the below quote: I've attached the floor plan below but I'm turning this flat which I'm moving out of into a BTL property, I've already converted the property to a BTL mortgage and moved the property into a limited company but it needs renovating before it can be let out to tenants. Apart from the double glazing windows which are 2-3 years old, everything else needs replacing as this is a very old converted victorian flat which is in need of full modernisation. I've estimated the work based on research to be around £35K-£40K with contingency of £5k-10K based on a full refurbishment and size of the property. I thought this was a very generous budget and was hoping to come a bit under this budget but I had a shock when I got a quote for £56K. I've put the breakdown of the quote below. From my side, the contractor is very experienced and does good work based on pictures I've seen and recommendations and I've got a good gut feeling he would do a good job and this would be the final price. However, I feel this is quite expensive based on my original expectations. I also received another quote for £36K but I feel things are missing from this quote and the cost would increase a lot, say by £10K. I am still waiting for other quotes but I think the question that I'm asking is: 1. Is the quote a realistic quote for the work required, if not, what be would be a fair quote? (rough estimate or range being in London, finger in the air type guess) 2. What information should I ask for to get a better understanding on the quote and to check if things are being priced up. 3. What strategy should I use to bring down the price of the quote if it's not fair. 4. Just any advice in terms of what I'm doing wrong or should start doing, would be much appreciated. Thanks again for reading or responding to this post. £56K Quote: £36K Quote: Floor Plan of Flat
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Re-mortgage loan or personal funds for renovation
ayns posted a topic in General property discussion
Hi, We have a buy to let that has been performing relatively well and with the exception of a few bits here and there we have done nothing to the house since we purchased it 14 years ago. We have about 70 worth of equity in the house and the according to the building society we have the ability to draw out 24k based on ltv / rental income. Question is, do I re-mortgage and take the 10k out of the house for refurb via mortgage but obviously incur big interest cost over the remainder of the term (15 years), or do I use my own money or a personal loan (10k would cost me £700 in interest over 5 years) and still have the option to re-mortgage the house in the near future to capitalise on any buying / refurb opportunities that come available in the next 12-24 months . Obviously trying to map out the property cycle is hard at the moment - do I just undertake the refurb and accept the increase in rent for a few years and wait for an adjustment in the market to buy? Obviously re-mortgaging when the market is flying (now) is great as you can pull out more money, if the market crashed I maybe couldn't rely on pulling money out to invest elsewhere as obviously the value of mine would have gone down so I would miss the opportunity. So confusing!! Any help on the above or a different point of view would be great ! Thanks -
Hello All, I have a question with regards to a Flat that I have just bought and I want to carry out a full refurb of the property as it is a bit dated and I want to make it more to my taste. The property is on an upper ground floor level of a Victorian conversion with 1 flat below me and 3 others above me. The legal structure is as follows: 1. This is a share of freehold property 2. A management company has been put in place by the Freehold company to manage the building 3. There is a lease between the management company and the freehold company for which I am effectively a "tenant" and have to adhere by the terms of the lease between the two parties The refurbishment plan I have for the property includes changing of the floors, installing underground heating, getting rid of a non-structural wall between the living room and the kitchen in order to create an open plan living space and will take about 2 months to complete. From reading the lease, it clearly states that I do not need any permission from the management company to carry out any decorative works, however, if there are any structural alterations to the property, including flooring and pipes, I have to inform the management company of the works. The exact wording from the lease is below. Not to erect maintain or make any structural alterations in or additions or improvements to or cut maim alter or injure any of the walls or floor or ceiling beams or slabs or alter the external appearance of the Demised Premises or any part thereof or to any conduits pipes wires cables or ducts or remove any of the Landlord's fixtures but so that the landlord's consent shall not be unreasonably withheld to any non structural alternations. My questions are as follows: 1. I am not carrying out any structural alternations to the property as I am removing a decorative wall and removing flooring that is laid on top of the actual floors of the property (which are owned by the landlord). Does the management company have the right to refuse for me to carry out the refurbishment as per the terms of my lease? 2. Other than being a good neighbour and informing the other residents of the building that I am carrying out works, is there a legal obligation on me to do so? Thank you all very much! Hussein
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My long term girlfriend and I have been looking for a route onto the housing ladder. My girlfriend’s Dad owns a commercial premises on which he runs a profitable laundrette from. He also owns the freehold to the first floor which has separate access and is currently being run as a 3 bedroom HMO. Long story short, the property is well suited for a loft conversion / extension, next door have already done this a few years ago. My girlfriend’s Dad has agreed to “gift” us ownership of the proposed 2nd self contained flat should we fund the works. The works would comprise a small ground floor extension to the business coupled with a light refurbishment, first floor reconfiguration within the existing footprint and a second floor loft conversion. The first floor is currently very dated and a complete refurbishment with a better layout would increase the rental income massively. By day I am a QS and comfortable with the planning and construction aspects of the project. The construction works will cost in the region of £100k-£130k depending of scope and final specification. My girlfriend and I plan to raise the capital from a family member who will release some equity in one of their properties. We will then repay them at full cost plus additional interest. Up until now, it all seems fairly straightforward, however this is where it gets a little complicated. The approximate financials of the project: All in construction costs (including fees): £130,000 Cost of borrowing (from family member): +/- £7,000 This next part is on my to do list in the coming week, I have been meaning to take the plans to a few estate agents and see if they will do a desktop valuation of the proposed plans. At this stage, all I can do is compared to the current market. This property is based in Teddington, London, comparable 1 bedroom flats, just across the road are selling for £330,000 (these are about 15m2 smaller than our proposed flat). To show the feasibility of the projects financials I will assume a final appraised value of £250,000, which is way under what I anticipate the value to be (anyone who knows the areas, will know 1 bedroom flats rarely appear for less than £300,000). Total spend: £137,000 Final appraised value: £250,000+ We would then mortgage the flat after 6 months at the appraised value of £250,000 +/-, using a 60% LTV mortgage. Meaning we would maintain 40% equity (approx £100,000) and release 60% (approx £150,000). This £150,000 will be used to repay our total spend to the family member. Should the appraised value be more and we manage to release more equity, this will be used to begin our property portfolio under the ‘buy, refurbish, refinance’ model. We are currently facing two areas we need some advice on. Question 1: My girlfriend’s Dad owns the property in question as a second home. Once the works are complete, we need to figure out the best way to transfer ownership (the new lease hold) of the second floor flat from my girlfriend’s dad to us! I understand we could be facing capital gains tax and I know there can be issues when gifting a property. I am looking for any tax experts who may be able to recommend the best way to go about this handover? Question 2: As mentioned previously the existing property comprises of a commercial space on the ground floor and HMO on the first floor. The proposed second floor flat which we plan to own and mortgage will be above both the commercial space and HMO. I am aware that when it comes to getting a mortgage on a property above commercial space you are faced with far fewer mortgage options. This is why in the calculations above, I have opted for a 60%LTV mortgage as my gut feeling is this would open up more mortgage options, if we can get a lower LTV, we would probably go for it. My concern is that for whatever reason we may not be able to get a mortgage at all on the second floor flat. Can anyone see a reason why this would be the case? If so, who would be the expert to consult, I am assuming a mortgage broker?
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Hi I am looking to avoid reinventing the wheel and benefiting from your experience if possible. Does anyone have an assessment form they use to make sure they're consider all aspects of potential works required on a purchase? If you have anything like this and would be happy to be share, I'd appreciate hearing from you. Thanks Nicola -
Hello, My name is Michael and I am based in London. I have previously done a couple of deals in Spain and Eastern Europe and now would like to focus on the UK market. I am a software developer turned into entrepreneur over the years. I am looking for a long-term partner (with a track record, good references and with some cash to invest) in the Manchester area to join forces with. I would like to start investing in the real estate market by acquiring houses in a poor condition, refurbishing them and then selling them as soon as possible. Rentals do not attract me. My participation to the business would be just cash. We would draft a deal that's efficient for both parties. If you can recommend me someone, please do. I appreciate your help! Thank you!-
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So before COVID 19 I had some ideas floating around in my head. I am a home owner and will be mortgage free in in a few months. My property was valued at 200k its a small 2 bed end terrace bungalow with some space at side for a extension of around 6x4m. My currently line of work brings in around 20k to 25k after tax. I'm self employed. I have been in my current trade 28 years. I would like to get into property, being single I don't mind living in a place I could refurbish. Maybe I could rent my place after improvements? Any ideas welcome considering the current state we are all in. Thanks
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Good afternoon all, With all that is/or isn't happening during lock down I'd like to offer some free help. I'm a self employed project controls engineer which involves detailed project management plans and reporting. This involves building logic based gantt charts, critical paths, manning graphs, cost reports etc. Basically I like planning software and excel far too much! If your current systems would require a second opinion I'm happy to help? I can provide some advice / templates that could improve your current setup. Give me a shout and we can discuss. Stay safe, Chris
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Hi I am from Reading and currently going through the Goliath Sourcing Academy training. I have learned alot about property over the last month. I am in the process of putting together my goals formally. My end goal is to build a buy to let portfolio with the aim of earning atleast 7,000pcm after tax. My chosen strategy is BRRR or BR and flip. However I do not have enough capital to source. So my strategy will be to Co source deals with a deal sourcer, use that money to start my own deal sourcing business, use the money from the business to implement my strategy. Therefore if anyone if anyone is happy to assist me even look over some of the deals I have have to point me to the right direction, I would really appreciate it. Thanks all Yvette
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Please can someone help! I am in the process of buying my first property through my new ltd company. My guess is it will complete in 6 weeks or so. It is a 3 bed property that will be a single let. The property is perfectly habitable now and could easily be rented out as it is, however I want to do a fairly big refurb. E.g. replacing the kitchen and bathroom, new carpets, redecorate etc. This will mostly be a like-for-like refurb and I don't think the majority of it will count as a capital expense. If I do this work before I first put tenants in, am I right in understanding that I cannot claim this work as an expense as it involves getting the property ready to be let. However if I put tenants in first, then when they leave I decide to do the refurb, I now could claim this as an expense as the "rental business" would have already started. Have I got that right? My big question is... *What is the minimum period of time I would have to have a tenant in my property before I could class any replacement refurb work as a revenue expense?* If I rent the property out on a 1 week AST, then do a big refurb, clearly this will turn some heads with HMRC. So what is the magic number? 1 month? 6 months? I hope I can get some wise responses on this. Many thanks!
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Hi everyone, My question is as it says in the title really... does anyone have any recommendations for companies that they've worked with in Northamptonshire who can manage end to end refurbs? I'm in the process of buying a 2 bed terraced house that needs a full refurb (gas needs connecting, damp dealing with, central heating putting in, new bathroom, new kitchen etc. etc.) so am looking to get some quotes and choose a contractor in the next month or so. Thanks in advance! -
Hi Everyone, I am brand new to the world of property investment but have been involved in construction all my adult life. I run a Refurbishment/Renovation business in the South East. My goal now is to start a portfolio that will allow me to have more free time. I am keen to learn and eager to succeed but would greatly appreciate any help or advice on offer for someone new to the game. My strategy would be to buy BTL's that require some renovation so I can add value and keep the cash flowing. I am self employed and so is my Fiance although we have equity in our current property our employment status has limited our lenders. I would love to hear if anyone has had a similar situation or any advice on getting started. Thanks in advance. Scott
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Hi Hubbers, Out of interest I am just wondering if anyone would use a project manager to advice and assist you in your property investment. For things such as refurbishments and flips. I have offered up free advice and support on here before and I am very keen to help others, however I have had little response. Is this because people feel they can do all of that work themselves, it would be too costly etc?? It would be interesting to know your thoughts. Just for full disclosure I am a project manager in the day job which is why I am so interested. I want to offer people free project management advice with an option of a paid service for long term help. At a much cheaper rate than a 'consultancy' setup. Would this be of interest to people? Thanks! Ben -
Hi Everyone, So I have viewed & want to purchase a large house near me, it was previously used as a halfway house for under 25's run by a charity. As such it was set up with 6 bedsits, each with kitchenettes & two shared baths rooms, one on each floor. There is also one more bedsit, that used to be the office that again has a kitchenette & its own bathroom. It has a fire alarm installed already, and each bedsit has its own consumer unit. Really it just needs a bit of TLC and decorating to get it back to scratch. My question is, should I keep it the same setup OR do I change it to four 1 bedroom flats? I am clued up on what would be required of me if I kept it as a bedsit HMO, however, I am confused about what the building would be classed as If I changed them into four 1 bedroom flats? Would it still be classed as HMO as each "flat" would be a Unit? I have attached a picture of the floor plan below. Really appreciate any help, Doug -
Dear Hubbers, My partner and I have just acquired a big project... three, actually. They are semi-detached Victorian properties divided into between 4 and 6 flats each. They require a total refurbishment. Anyone know of a reliable builder team that could manage to do all 3 properties at once to relatively strict timelines? We do need quality fit and finish as we intend to hold on to the properties indefinitely. Thanks in advance! CD
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Hi everyone, My name is Rob and it would be great if you can offer some advice on my proposed joint venture. I have attached an investor pack that summarises the joint venture and at this point just provides a brief overview. What would be great is if you can critique the proposed offer using your experiences? e.g. does it sound interesting? plausible? Any advice would be greatly appreciated. Many thanks, Rob McCarthy
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Hi I am going to need to work with a builder in the Lancaster area to help update and modify some of my new student let properties over the next few months. Any recommendations out there? Cheers Job
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I would be very interested in talking to anyone who has experience of flipping properties around the Guildford area (10 mile radius). As per Rob’s suggestion, I’m happy to buy lunch for anyone with experience who would be happy to talk about their successes! Thanks, Charlotte
