1. Know your budget. Aside from the cost of the property itself, allow £1,500-£2,000 psqm for renovation or redevelopment. Repairing a 'wreck' can cost more than knocking it down and new-build, simply because you don't know what's going to happen when you start pulling down walls or digging foundations, so allow 15-20% contingency.
More information on costing works.
2. Get a proper survey. A property at auction may be offered with a survey, but make sure you know what level of survey and order your own if you're serious about bidding.
More information on surveys.
3. Know the site. Look at the Property Register which lists pathways, access rights, shared drives and rights of way, and the registered title plan which shows the boundaries - compare these with what you can see in reality. Look at the Charges Register to see if there are any restrictive covenants that might limit your use of the property, and check for Tree Preservation Orders which could affect your build plans.
More information on land/property registry.
4. Look for bargains at auction. But know your budget (see 1). Order a copy of the auction catalogue and make sure you visit the property you're interested in. Have the finances in place - you'll usually be expected to pay 10% deposit on the day and the balance within 28 days.
More information on buying at auctions.
5. Visit the property. Obvious, but surprising how many people will buy a faraway 'bargain' based on just the sales brochure. If you don't know what you're looking out for, take along a builder or structural surveyor with experience in renovating similar properties.
More information on contracting builders.
6. Sort out your mortgage early. Even if you're not sure whether you'll need one - the likelihood is you'll go over your initial budget simply because there are always surprises in a renovation project. Many mortgage companies offer a self-build mortgage or a renovation mortgage - most as 'tracker' mortgages which means money is released in stages as works are completed, so you will need money up-front.
More information on renovation mortgages.
7. Know your restrictions. Does it have outline or full planning permission? If it doesn't have any permissions in place, have you spoken to the local planning office to get an idea of what they might accept? Does it have listed building restrictions? Is it in a conservation area?
More information on restoring listed buildings.
Also - The Society for the Protection of Ancient Buildings
8. Hire an architect. Tempting (or necessary) though it may be to design it all yourself, hiring the right architect will save you money in the long run - both in getting your plans agreed and in helping you make your budget stretch further. A RIBA-registered architect will have at least seven years experience working as architects, or use a CIAT-registered architectural technologist if the technical aspects of the project matter more to you.
9. Be VAT-savvy. For new-build properties and conversion of a non-residential property (eg a barn, a water pumping station..) you can claim back the VAT you pay (except on professional fees), which at the current 20% rate, is a mighty saving. You can also claim the VAT back on renovating properties which have been vacant for 10 or more years, while renovation work on properties empty for two years or more pay a reduced rate of 5%.
More information on VAT on building works
10. Plan your energy use. The cost of energy isn't going to come down and most consumer analysts believe we pay more than we should do for gas electricity - something Ofgen is looking at. If you don't plan energy-efficiency into your renovation/rebuild project you might as well fill a binbag with tenners and give it a burial at sea.
