There are plenty of compelling reasons as to why you should consider renovating a house rather than purchasing a ‘ready-to-go’ property. To begin with, renovating offers you the opportunity to create a house full of character and unique features. Secondly, if done correctly, it can provide a great return on investment.
Adversely, if you proceed without doing your homework and properly planning out the renovation project, it can prove to be a money sinkhole, leaving you dealing with financial losses and frustrations.
How to Spot Renovation Potential
When determining whether a property is worth investing in for the purposes of renovation, there are some important factors that you need to consider to find out if it has the right potential.
- The potential for renovating the property.
- The availability of space to extend, be it for a side or rear extension, or a garage, basement, or loft conversion.
- Planning permits. Consider checking out houses in your area and find out if they’ve been successful in obtaining permits for renovations similar to those you are planning.
- The location of the property.
- The amount of structural work versus surface-level work required.
- The ceiling price for properties in the area. You need to consider whether your renovations will be able to enhance the value of the property.
When looking to purchase a house to renovate, you should keep in mind that besides the work involved in the renovation, there are some hidden costs you need to factor in:
- Valuation fees
- Council tax
- Reconnection fees: Depending on the type of renovation work required, you might need to connect or re-connect the water supply. In addition, electricity will be necessary to power various tools and equipment or if you plan on staying on-site.
- Contingency fund: It is important to ensure that you have some additional cash on hand to help you deal with any unexpected expenses, which are quite common when renovating a house.
- Professional fees: There are fees for conducting surveys, planning permission and Building Regulations approval, structural engineer reports, as well as other professional fees such as tree surveys.
- Legal costs: The cost of a solicitor or conveyance will range from £500-2,000.
It is always a good idea to use a chartered surveyor when looking to buy a house to renovate as they will help identify any potential problems that can affect the sale. They will also advise where best to upgrade, such as double glazed windows Hampshire. While surveys are typically undertaken after an offer has been accepted, it is possible to set one up even before presenting an offer on the property, provided that the homeowner consents.
The surveyor will be able to provide a comprehensive report, highlighting any potentially problematic areas and help you determine the types of repairs needed and how much they might cost. With the information provided in this report, you will be able to make a more informed decision on whether to complete the transaction or start negotiations for a better deal on the property based on the findings.
If the chartered surveyor detects or suspects any of the following problematic issues, they will recommend further investigations:
- Drainage issues
- Heave or subsidence
The building report should also indicate the construction methods used in the house – these may vary if the house has been extended over time. This information will be crucial in ensuring that any new material and techniques used during the renovation project are appropriate.
Most structural problems can be resolved. While they may increase the overall costs, identifying them early in advance will help you to plan better for them.
What Fees Will I Pay When Purchasing a House to Renovate?