Thinking of buying and renovating an empty property?
How can I trace the owner of an empty property?
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Neighbours or local shopkeepers may know who owns the property. This
method costs nothing and can often yield valuable information.
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You can carry out a search through the District Land Registry for a small fee.
The HM Land Registry for the Swansea area is based in Ty Cwm Tawe Park,
Phoenix Way, Llansamlet. Telephone: 01792 355000.
http://www.landregistry.gov.uk/
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If there has been a planning application made for the property then details of
this will be lodged with the Planning Department. This information is held on
the City & County of Swansea website www.swansea.gov.uk/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 isn’t worth enough for
them to recover the loan if they repossess the property. However there are some
companies that do sometimes offer mortgage products particularly suited to
renovating empty properties. There are some listed below:
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The Ecology Building Society - www.ecology.co.uk
Buildstore - www.buildstore.co.uk
The Co-operative Bank
Norwich and Peterborough Building Society.
Grant Assistance:
The City & County of Swansea currently have a grant available for renovation of
empty properties under the Grants for Nominations scheme. You may be eligible for
a grant of up to £5,000 or 75% of eligible costs, whichever is lower. The Council
requires the property to be let via a preferred Social Letting Agent for a period of not
less than 1 year from the date of grant certification.
The property must be 10 years old or more, be empty for more than 2 years and
priority will be given to dwellings in areas of housing need (as identified by the
Council). For further information on this please contact the Urban Renewals team on
01792 635335 or email [email protected]
Houses into Homes - Interest Free Loans:
A Welsh Assemble Government Scheme offers loans available on an interest free
basis - up to a maximum of £25,000 per property (or £150,000 fir multiple units in
one building). For more information on this contact the Urban Renewals team on
01792 635335 or e-mail [email protected]
Energy Efficiency Grants:
For advice and information on Energy Efficiency Grants available to you please
contact the Energy Saving Trust on 0800 512012 or
contact http://www.energysavingtrust.org.uk/
They can check whether you would be eligible for any grant aid e.g. for home
insulation.
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 the Planning Department 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 that you’re
planning application progresses more smoothly as they will be aware of regulations
and restrictions on building. Visit the City & County of Swansea Planning website for
more information www.swansea.gov.uk/planning.
Finding a reputable builder:
When commissioning a builder to carry out any renovation work it’s worth while
considering the following points:
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Paying extra for a detailed survey report as this will show you exactly what
work is required to bring the property up to standard.
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Aim to get at least 3 quotes in writing.
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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!
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Ask for addresses of properties where the builder has carried out work; this
way you can ‘drive-by’ these properties to view their workmanship.
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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.
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Some websites are able to recommend a reputable builder – try the
Federation of Master Builders www.fmb.org.uk which has a link entitled “find
a builder”. By inputting your postcode it lists local builders to that area that are
licensed with their organisation. They can also be contacted on Tel: 0207
2427 583.
Reduced VAT rates for owner/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 2 years;
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Zero rating the sale of renovated buildings that have not been used for
residential purposes for at least 10 years.
Refer to the fact sheet ‘Empty Property VAT exemptions’ for further information.