Refurbishment backlog – would I be better off selling my property?
Owners who now want or have to refurbish their old property often find themselves facing challenges and high investment costs. So what should you do if the backlog of necessary refurbishments to your property is likely to cost you too much and cause you too much stress?
In the context of property, we talk of a refurbishment backlog when properties have not received the necessary refurbishment work and therefore don’t meet current technical standards. A lack of funds is a common reason for a refurbishment backlog.
Which parts of the property are affected?
When it comes to refurbishment backlogs, the most commonly affected areas of the property are the roof, flooring and building services. But these are just a few examples. The areas in need of refurbishment always depend on the state of the old building.
A property from the 1930s that has always been adapted to the latest technical standards will have less of a refurbishment backlog than one from the 1960s that hasn’t been updated in any way since it was built.
To find out exactly what needs doing to their property and whether the cost of refurbishment is worth it, owners should consult a construction specialist or architect. The possible presence of hazardous substances in the roof area might also require the services of a surveyor. A local estate agent can help you find a competent expert in your area.
What are the potential costs faced by owners?
The extent of the costs depends on the condition of the property. Even simply updating the electrics can cost up to five figures. The same goes for cellar refurbishment, roof repairs and the removal of hazardous substances. The costs of setting up the construction site and hiring experts must also be factored in.
Owners of rental properties must also be aware that a maintenance backlog makes these buildings unprofitable in the long run. The longer the refurbishment work takes, the greater the loss of rent income. Old heating systems and poor insulation drive the costs up further.
When the costs are too high
If, following the construction experts’ report, it turns out that the refurbishment costs are too high and unaffordable, or if the investment is not worth the outlay, then we advise that you consult an estate agent about potentially selling the property. This is because a demolition and new-build are also expensive. Furthermore, a demolition is not always possible without further obstacles to overcome.
Are you planning to refurbish your old property and are unsure whether it is worth the money? Then get in touch with us! We will be happy to support you.
Note
In this text, the generic masculine is used for better readability. Feminine and other gender identities are explicitly included to the extent necessary for the statement.
Legal note: This article does not constitute tax or legal advice in individual cases. Please have the facts of your specific individual case clarified by a lawyer and/or tax advisor.
