What to do with a very dilapidated, inherited house

M

mir2001

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Hi
I inherited a totally run down house. Estimates of the cost of fixing it up range from 80-150K. It's not in a location I can move to and I don't have the money to do it up anyway. It's a 3 storey 4 bedroom house dating from the late 19th century. Even at a 55K selling price I haven't been able to get any takers. The few that have been interested were refused a loan on that type of property by the banks.
Insurance on the house is currently running at 800 a year and I will probably have to pay some kind of second home tax on it. People have suggested I just board it up and wait for the market to improve but I'm not sure how that would work given that it's a terrace house and I imagine if it continues to disintegrate it could damage the houses next to it. I'm worried that I might be liable for any damage caused to those houses. Because of all this I am tempted to sell at an even lower price. I was hoping to get more from the sale as I have a pretty substantial mortgage on my own house. So I suppose the question is do I sell at a tiny price or do I try to hold out until the market picks up a bit? And if I do the latter, will I be liable for damage?

I would love to hear from anyone else who has experience of such a situation or knows about my liability? Any advice would be greatly appreciated.
Thanks
 
On what basis was the 55k selling price set?

Look at it from the point of view of the buyer: Do you really think you can do up a "totally run down house" for 80k?

Let's assume the upper range of estimates.....if it could cost 150k to do it up, and add the 55k selling price, are the finished houses next door actually selling for at least 205k?
 
-this is based on my experience of buying 200 year old 4 storey building in crap condition but low price in Dublin 1 twenty years ago.

- yes, you may be responsible for damages caused to adjoining building.

- If Dangerous Buildings officer from Council sees that building ( most likely if a neighbour reports it) you will be obliged to spend much money following his recommendations. "Dangerous" does not only mean it'll collapse - any perceived possibility such as a brick, tile or window pane coming loose in a storm or even a danger to tresspassers (crazy I know) would make the council official issue recommendations.

- Insurance ? You actually have an insurance company willing to insure a run-down deserted building ? I 'm amazed and suspect that they don't know it's condition or that its deserted.

You don't say where it is - if it is in a rentable area maybe it's worth boarding up -once the stability of the building has been determined. I doubt you'll get insurance.
Maybe in 10 years or so it'll be worth converting into 3 apts (which is what i did plus shop at bottom).

But ,frankly, unless it's in a great location, the best thing for someone with no cash would appear to get rid of it for whatever you can take.
There is a tiny chance you may find a builder willing to take it on and split the profits with you - you may end up with a small apartment.
 
Hi
Thanks for all the replies.
I don't think it is going to collapse although holding onto it might result in such a condition. I'm afraid I don't know enough about how fast an empty house deteriorates really. My aunt was living it until this time last year and I imagine you could patch it up for around 50k to make it viable to rent but I imagine a buyer would want to do a more complete job.
The price was initially set at 80k but the estate agent suggested that price recently and as I am anxious to get it sorted out I agreed. Other houses in the area that are in the same state of disrepair are selling for just above that price. Another thing putting people off is that it is a listed house which I have only been made aware of recently. It's located in the centre of Dundalk, literally 2 minutes from the main street.
The insurance company are aware of all the facts.
 
1. Sell your sole domicile and move into it and do it up.

2. Gift it to a person who will get use from it, to An Taisce or to the State.

Looking at it soberly -

- its currently brings you in no income
- it represents a nett loss of €800 per annum
- it will cost too much to refurbish to either sell or let
- you may be stuck with the upkeep of it if its a listed building
- if you get served with a derelict sites notice significant additional costs may arise.

"Use it or lose it".

Or gift it.
 
What a coincidence - I've been trying to sell my property in Dundalk centre for ages after renting it for ten years. But I'm having no luck so am going back to renting.
I've been monitoring Dundalk city centre prices for the years.

Dundalk property prices are going down and down. No sales.
I dont know what your auctioneer is telling you but to whom do they think it would sell ? Familes are not moving into midDundalk. For little more than 100k a family can get quite nice places with gardens in suburbs or by the sea.

It may rent for ca. 800 a month if in reasonable condition if you were kucky to find 4 people wishing to share ,or maybe a Social Welfare family. (many tenants in midDundalk are social welfare).

Maybe a builder who could convert it into 3 apartments -depending on P.P. -would be interested, but not at 55k.

Maybe you should pop into the Town hall in Crowe Street and ask about the councils guaranteed rent scheme and see if there is any demand for bigger houses from social welfare. Unfortunately the Council insist on quite high standards - a good BER rating ,electricians reports etc

Sorry to sound pessimsitic -but I'd be amazed if you could get rid of it in the coming dead four months for over 50 grand, if at all.
 
Try to sell at one of those auctions e.g Allsop, but be prepared to let it go at a low price.
 
Hi
Once again, thanks very much to everyone who has taken the time to reply.
The link to the house is http://www.daft.ie/searchsale.daft?id=570896
However it only has an outside image.
I did accept an offer of 45K but the person offering didn't follow through.
As somebody without a pot of money to invest in this property I am anxious not to end up losing money. I cannot move into it as I would have to uproot my son which wouldn't be fair.
I know there is no way social welfare would approve this property. It's all a bit sad for my aunt as I'm sure she thought she was doing me a massive favour by leaving this to me.
 
As it is not selling for 55k, and you dont wish/cant invest to fix it up for a profit.

I think you have two options remaining.

Gift it to someone else to make it thier problem(have them pay the fees for transfer etc). I say you would find a builder easily to take it for free! :D

Or drop the price dramatically and stick up some silly large signin the garden saying "Incredible Value - Only 35k! NO MORTGAGE FOR YOUR HOME!"

If you can drum up some article in any paper i say it would move faster.
Basically accepting that you will take a large hit on profit, but it would be 35k cash your inheriting rather than a pain in your wallet!
 
Ad says sale agreed so get that changed. Then put it up and open it for offers and accept what you can. You might have to pay tax on anything over a certain amount as the amount you can inherit from an aunt is not huge.
 
To be honest from the outside it doesnt look too bad at all? I bought a terraced house that had not been lived in for over a year a good few years ago and it really wasnt liveable at all.

I spent approx 30K doing it up with no structural changes. Have you had an engineers report done on the structure and foundations of the building? If they are all sound then It should not cost 80-150K to get it to a liveable and sellable standard.

Are you any way DIY inclined? Perhaps you could do some basic work on it yourself? That might help get it sold
 
Hi, I haven't looked at this for a few weeks now so I missed the last few posts. Unfortunately I have very little spare time outside of work and family so the DIY route isn't really an option. It is marked as sale agreed as since I put up this post some guy put an offer in of 45K and I took it. Rustbucket you may be correct about the costs of doing it up but I have no knowledge of this area and this was the estimate given by the estate agent and a cousin of mine. It may well be that the poor interior looks worse than it really is. I did show some photos to a friend of mine who has done up a house or two and she reckoned it could be done up for less. But as I said I do not have the time or money to put into this kind of project. Many thanks to everyone who took the time to give advice on this, M
 
Have you managed to sell this property? If not, I may be interested.I would PM but am not sure how to..
 
Seems like a no brainer to me.
You inherited it so it didn't cost you anything.
You don't have the time or the money to fix it up.
It is costing you money to keep it.
You aren't happy with the price you may get - by the time the property market recovers this house will probably be 8-10 years older and therefore more dilapidated.
Sell it for whatever you can, knock it off your own mortgage and thank your aunt for what she left you.
 
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