Thinking of buying and renovating an empty property?
How can I trace the owner of an empty property?
- neighbours or local shopkeepers may know who owns the property. This method costs nothing and can often yield valuable information
- you can carry out a search with HM Land Registry (opens new window) for a small fee
- if there has been a planning application made for the property then details of this will be lodged with Planning.
How do I get a mortgage for an empty property?
It can sometimes be difficult to get a mortgage for an empty property, as many people need to borrow more money for the combined costs of purchase and renovation than the property is actually worth in its ruinous state. From a lender's point of view, this is high risk, because if you default on payments the property is not worth enough for them to recover the loan if they repossess the property. However, some companies do sometimes offer mortgage products particularly suited to renovating empty properties. For further advice speak to a mortgage broker who should be able to assist.
Interest free loans
Landlord loan
The Welsh Assembly Government Scheme offers loans to empty property owners on an interest free basis - up to a maximum of £25,000 per property (or up to £250,000 for multiple units in one building). The fee for administering this loan is £1,000 and it is subject to credit checks. For more information contact the Urban Renewals team on 01792 635330 or e-mail urbanrenewals@swansea.gov.uk
Owner occupier loan
This loan is available to empty property owners where they intend to live at the property themselves for the duration of the loan. An owner can borrow up to £25,000 per dwelling, which is interest free. The loan is repayable in monthly instalments and the loan needs repaying in full prior to the scheme ending in 2029. The fee for this loan is £500, which can be added to the loan amount.
Loan to value ratio cannot exceed 80%
Further information on these schemes is available at Welsh Government owner-occupier loans
Energy efficiency grants and advice
For advice and information on energy efficiency grants available to you please contact the Energy Saving Trust on 0800 512012 or contact www.energysavingtrust.org.uk (opens new window) they can check whether you would be eligible for any grant aid eg for home insulation.
Further information on energy efficient loans can be found at Make your home more energy efficient
Obtaining planning permission
Planning permission is required if you intend changing the use of the property i.e. from a shop to a flat/house, from a house to a number of bed-sits/flats etc. Planning permission is also required if you intend extending the property as part of your redevelopment or wish to alter the property in any major way. It is always best to check with Planning Planning and building control prior to starting work as they can offer you advice and have literature available that offers further information.
Commissioning an architect or draftsman to act as your agent will also help to ensure your planning application progresses more smoothly as they will be aware of regulations and restrictions on building.
It is worthwhile considering using the Pre-planning and planning advice service as this allows you the opportunity to seek advice from Panning prior to submitting a formal application.
Finding a reputable builder
When commissioning a builder to carry out any renovation work it is worthwhile considering the following points:
- Paying extra for a detailed survey report as this will show you exactly what work is required to bring the property up to standard.
- Aim to get at least 3 quotes in writing.
- If possible, get recommendations from friends or colleagues. This is always preferable as if they have had a good experience with a builder then the chances are you will.
- Ask for addresses of properties where the builder has carried out work, this way you can 'drive-by' these properties to view their workmanship.
- Make sure that you make it clear to the builder exactly what work is required, and at what stage they can expect to get interim payments and for how much. Drafting a schedule of works helps to detail exactly what work is required and to what standard.
- Some websites are able to recommend a reputable builder - TrustMark (opens new window) is a Government endorsed quality scheme covering work a consumer chooses to have carried out in or around their home. When a consumer uses a Trustmark Registered Business, they know they are engaging an organisation, which has been vetted to meet required standards, and has made a considerable commitment to good customer service, technical competence and trading practices.
Reduced VAT rates for owners/ developers renovating an empty property
In an attempt to encourage the reoccupation of empty properties, the Government has introduced relief on VAT. This includes
- a reduction in VAT to 5% on the cost of renovating single house dwellings that have been empty for longer than 2 years
- zero rating the sale of renovated buildings that have not been used for residential purposes for at least 10 years.