First-time buyer- advice on home report

[jayyy]

Hi All, 

I am looking to purchase my first property as I managed to save some money during the lockdown. 

The plan is to buy one in a distressed condition, do the non-skillful work myself and hire tradesmen to do the rest. 

I have a question on a particular subject- will I come across any issues with the mortgage application process if in Survey section of the Home Report there are sections with 3s? Eg. the Dampness & Roofing sections both have 3s. I have attached a screenshot of both sections. 

Also in terms of costs to repair the roof and the - obviously it can never be a 100% accurate figure without being on sight but does anyone in the group have an estimate of the figures?

If that would be an issue, does anyone have any ideas how I can circumvane this?

Many Thanks

Georgi 

[Julia Urquhart]

Mortgage shouldn't be a problem - although I will defer to specialists here - unless the valuation comes up with a very different figure to the buying price. The Home Buyers report is for you - the mortgage company just want a valuation.

I would recommend getting a quote for the works before you buy. You can then possibly use this as a negotiating tool in the purchase price.

If you need to replace timbers your costs will be a lot higher than if you just need some repairing. The report is too sketchy to put a price on but a new roof will cost £6-10k maybe?

I would suggest that this particular house may not be an ideal FTB as damp & roof repairs can be very costly. Sometimes the smart move is to walk away.

Good luck

[wadiihindu]

Great idea. This method of reselling real estate is called the "brrrrr method." My father has been reselling real estate for many years, and as far as I know, he is doing well now. There will be a lot of costs, so you need to be prepared for that. As far as I know, when my father was working in Sydney, he used to go to this company for roof repairs: https://carportaustralia.com.au/insulated-roof-panels/. He said this company is very good and it is a pleasure to deal with them. Try to choose only good and proven companies, because your reputation in the future will depend on it.

[stevewalker]

As a first time landlord, if the property is not ready to let you may have difficulty getting a mortgage.

It will depend on your ability to service the void period and valuers comments plus general profile of the application.

There are two video on this link which explain bridging loans typically used for BRRR's

https://www.promisemoney.co.uk/85-ltv-refurbishment-bridging-video-follow/

one is available for first time buyers

It might give options if the mortgage doesn't work out

 

good luck

Steve Walker

[Lilla D]

Hi Jay,

You mention "Home Report" and Julia assumed that you meant "Homebuyer Survey" instead. The two are very different things.

The Home Report is used in Scotland and lenders do use it instead of their own valuation, so if there's any problem mentioned in it, the lender will pick up on it. We had recently quite a few lenders, who imposed a partial or full retention until the damp issues were sorted out...

The Homebuyer Survey is used in England and Wales to learn more about the property beyond what the lender's basic valuation report would show (if the lender even shares a copy of it). This survey can be arranged by you independently from the mortgage application and, indeed, it's not shared with the lender, so has no impact on the mortgage.

Which one do you have?

 

[teo_realestateagent_com]

 As a first-time home buyer you should really do your research first.  The mortgage shouldn’t be a problem and getting a quote for the repairs will help you negotiate the purchase price.