Mortgage for a fixer-upper?

kingQuez

I've seen an apartment I'm interested in (based on location and price), but it needs a complete refurbishment (which I ideally wanted to avoid).

My main reservation at the moment is that its got bad insulation (rating g), and has no heating system - so will need electric storage heaters installed. They're projects beyond what I'd considered doing before.

I haven't used electric storage heaters much, generally I've found them to be a bit of a pain.. I'm wondering how common they are given the price of running them, and whether it's a bad idea to consider owning something that I can't get hooked up for central heating? (Plan is to live there, but ultimately might sell or rent it depending on life circumstances).

With minimal investment the apartment is in a habitable state; was wondering if I applied for a mortgage if I'd need to factor in the cost of getting work done, or if a bank is likely to give a mortgage for a fixer-upper as it stands?

The_Conductor

I'm sorry- once I'd see the BER rating of 'G'- I'd run a mile. I don't care what price it is- it would be ridiculously expensive to heat in the winter, or cool in the summer. What on earth did the previous owner do for heating? The idea of buying a G rated property- is just bizarre in my opinion. Life is too short for living in conditions like that.

As for a separate mortgage to renovate the property- in the current climate it would be unusual for a lender to countenance a separate mortgage akin to this (not impossible- but improbable).

I'd keep looking- for something with a decent energy rating that doesn't need considerable renovation..........

kingQuez

Cheers smccarrick, I've been looking for about a year now but rarely find something that gives a balance across my hitlist (location, price, and not needing a lot of work). I've tried being flexible on location/price in some of my searches and viewings, so the "needing much work" was the latest thing I relaxed my requirements on.. just to see what options came up and force me to investigate it a bit.

I dont have enough experience (or family/friends that do) to know just how much is involved in getting something back to a good state of repair when it comes to damp/insulation etc. - So perhaps my questions were a bit naive, but your sentiment is the same as what I'd actually been thinking myself

If you were looking, what would be the cut off point for the BER rating that you'd take on?

The_Conductor

Personally- I'd not consider anything with a rating under a C.

Yes- there are remedial actions you can take to improve your G rating- install double glazing for starters, pump insulation into the walls, probably change your doors, basically look at where you're loosing the heat from, and plug the losses starting at the worst and working your way forward. With a G rating- its almost akin to living outside without any shelter whatsoever, its not quite that bad- but its not far off it.

Energy bills are probably going to go higher again in September, and they're too high already- if you had a bad winter, which wouldn't be any great surprise, you'd be up the creek.

You say there is no central heating in the property- what have adjoining properties done for heating and/or insulation? What did the previous resident of the property do? Its all well and good say- I'll install storage heaters- but you're treating a symptom, not the cause by taking this approach........

ladysarah

please do not buy an apartment with storage heaters. apart from living there and paying high bills you will find it impossible to sell on down the road. my cut off point on BER would be a d. ypu can get an insulation grant from the SEAI and that would bring your rating up a grade.

malibu4u

Everyone would like an apartment with agood BER. Most apartments are the same.
No point in spending an extra 4,000 on a car because it saves a fiver worth of petrol a week.

Cilar

I'm in the similar situation - good apartment to buy, but with a F BER rating. I got a bit worried at the beginning, but I've been renting that apartment for over 2 years and the electricity bills are not that large (180-200 euros for 2 months in winter). All heating (storage heater) and water heating is electric, so that's not that huge.

Digging a bit more, found out the BER rating does not fully reflect the actual cost for the owner. It's more reflecting the environmental impact. Electricity get a big penalty in the rating because a lot of energy is lost during the transportation between the plant and the home, compared to gas where no energy is lost (beside in the boiler). Night rate for electricity are around the same price as natural gas (with electricity being 100% efficient vs 80% for a boiler) - so that's why I suppose the heating cost are quite manageable. I also found out that putting a 2x800 mm jacket (50 euros) on the water cylinder could move the rating from F to D2...

Insulation of walls and windows does not make a huge difference in the rating from the BER report (apartment from 2000) - so the problem is not really with insulation, more with electricity being used to heat.

There is still the problem that most people misinterpret BER rating, and that would include potential buyer and renter...

ted1

ladysarah wrote: »

please do not buy an apartment with storage heaters. apart from living there and paying high bills you will find it impossible to sell on down the road. my cut off point on BER would be a d. ypu can get an insulation grant from the SEAI and that would bring your rating up a grade.

Sarah, i wouldn't agree with you. storage heaters such as the Dimplex Quantum range are the future. Granted we need TOU Schedules to come in first, but these aren't to far away.

describe the apartment. is it a converted old house, does it have wooden floors or concrete floors etc.

stripe off the plaster off the internal of the external walls, and slab it with some kingspan thermo boards, and plaster, replace the windows with modern A rated double rated windows and you'll find its much warmer.

the BER isn't a gospel.

with regards the SEAI grants they are due to run out soon enough, and to be replaced with PAYS Schemes