Prefab construction

[JPM]

Hi I'm looking at buying a new BTL which is an ex council property of prefab construction.

What do I need to consider in relation to prefab? And risks/issues I should be aware of?

Cheers

James

[1600e]

Concrete or....?

[JPM]

Timber frame mid terrace with brick partition in between each house.

[SouthernDave]

My experience with council houses of modern construction is that they are rubbish. Cheaply built and I doubt will last very long.

[nukecad]

When somone says 'prefab' many of us think post ww2 1950's or 60's concrete construction, most were bungalows.

Many if those still exist and in decent condition, but of course as they were never meant to last so long there can be issues with the paperwork when it comes to sales.

Is this what we are talking about here?

[gnvqsos]

Many cannot be mortgaged-non standard construction.

[JPM]

According to valuation its a 1975 build, but the valuation just says external walls are brick/part clad yet the seller advised its prefab and the EPC references the timber frame.

[jpucng62]

What is the EPC - needs to be well insulated to get to a C.

[gnvqsos]

Do not bother unless you have cash.

[JPM]

Epc C.
But that expires 2023 so could potentially drop

[dp17]

Sounds more like an early timber frame build. I bough a new house (traditional build) in the mid 80's on a mixed build site which had timber frame builds too they were modular kits. i.e. the frames went up in very quickly. When I was there did hear a few had problems with damp where the timber frames had not been installed correctly, So rot could be a problem to be aware of. Other than that if the price is right and as you say its a EPC of a C, it may drop, but even the newest houses, nearby to us, on a local development are only a EPC B.

[JPM]

It's a good yield at around 7.5% on a £90k purchase so feels like a great opportunity just never bought non-standard construction so worried about potential costs (but there are risks with all btl) and moreover exit strategy. With intention to own for at least 15 years prior to a phased sale of assets through retirement.

[royw]

You may find it difficult to sell. It's unlikely that anyone who can pay cash will want to live in it, a homebuyer may not be able to get a mortgage and future LLs may be thin on the ground.

[nukecad]

There are prefabs - and then there are prefabs.

Huf Haus are prefabs, (well they call them modualr build), pretty expensive ones.
Nobody would regard them as in anyway sub-standard, the quality is better than most timber frame housing, but trying to get a mortgage to buy a Huf Haus is still problematical because they are not 'standard/traditional construction'.

Of course that's just therisk averse lenders being stuck in their ways, it's not that long since that timber framed builds had problems and restrictions with mortgages, because they were 'of non-traditional' construction. Now they are the norm.

[jpucng62]

Epc C.
But that expires 2023 so could potentially drop

A 10 year old EPC can drop 10 points without anything changing. Probably worth doing a new one if you are serious about buying it.