ᐅ Renovation of an Existing Property – Our Journey to a Home
Created on: 13 Jun 2019 14:38
L
LordNibbler
Since returning to Wolfsburg in 2017, we had been searching for a property. Initially, we rented to take our time finding the right house and to test the real estate agents.
Of course, properties meeting these criteria were expensive and scarcely available. The first viewings were disappointing:
Then, at the beginning of 2018, an offer came up that didn’t fully meet our criteria but was in the same neighborhood.
The house was actually larger than we needed, but the structure and architecture were excellent. Renovations were manageable (utility lines easily accessible, partly in shafts), and the leasehold was acceptable because the owners had prepaid their installments (there was a discount), so the annual fee was only 500€ (~$540). The leaseholder is the city of Wolfsburg, which by statute only raises interest rates upon resale (not during the lease term or inheritance). When purchasing the plot, the land value is calculated by the benchmark land value minus the redemption amount and with a 15% discount. In mid-2017, the offer for the land was therefore 118,000€ (~$128,000) (with today’s benchmark land value it would be about 150,000€ (~$162,000)). This was a bargain for the area and was included in the asking price according to the agent.
Still, after a second viewing with experts (not appraisers), we found enough arguments (wall crack, renovation needs) to negotiate the price down to 420,000€. The public offer was then reduced to 435,000€ (~$470,000).
A financing broker secured approval from the local savings bank (Sparkasse) for the mortgage (leasehold is a bit special here, mostly local banks are familiar). It was feasible as a 20-year full repayment loan (leasehold agreement had to be valid for at least another 10 years), with a potential buffer to save up the land price.
But there was one issue: the over-90-year-old occupant. She was looking for an apartment in a senior residence (ground floor, lake view). Every week we heard it was only a matter of days until one would become available. In the end, by mid-April, we had a reservation with ownership transfer no later than December, possibly sooner. So we committed to financing and arranged the notary appointment...
...and then a week later, there was a request for a meeting (bypassing the notary). The niece and sister explained that the reservation was declared invalid. The time pressure was too great. It wasn’t certain the apartment would be available yet. They felt the elderly woman couldn’t be expected to move into a care home. They wanted a purchase contract with more time — about a year (implicitly without a strict limit).
We only had 6 months interest-free financing extension, but could imagine a few more months. However, only with financial compensation (1,500€/month rental cost difference). The counterproposal was to buy as planned but with ownership transfer only after the occupant moves out (essentially the right to live there). This was not acceptable (due to hardship rules; in the end you own the house but cannot evict the old resident). The only outcome was an informal understanding: we remained interested, please inform us when the senior residence is arranged; if we find something else in the meantime we will get back to you. The agent (VR-Bank) was not very pleased since it had been difficult to get the three women to agree before. It wasn’t her fault; the dossier was the best prepared with all necessary documents and missing items obtained promptly.
Two weeks later there was another interested party. Moral of the story: we successfully lowered the price for others but they moved in in October 2017.
Here are some floor plans of the property as inspiration for other house planners:
The agent mentioned that in the residential area, maybe one property sells every 1–2 years. The rest are sold privately. Since we moved in, three houses have been demolished and replaced by new builds twice the size. Another is still a shell and is receiving a huge extension. None of these properties were publicly marketed...
...the search continues in the next post and how we finally found our home.
- detached single-family house (so no semi-detached houses)
- within walking distance to the city centers of Wolfsburg, Fallersleben, or Vorsfelde
- for existing buildings, construction year from 1960 onwards, even if not renovated, as long as the structure justifies investment (otherwise you pay for poor renovations that need to be redone)
- for new builds, located in a residential area with a coherent design concept (many new developments unfortunately look like model home neighborhoods where every option from the catalog has been used, but without creating a harmonious living environment)
- a larger garden with usable space
- no leasehold (common in this area)
Of course, properties meeting these criteria were expensive and scarcely available. The first viewings were disappointing:
- 5-year-old house in a new development: walls with cracks, water stains (from the foundation slab), unoccupied, agent said normal settlement cracks (but wrong direction and too large), suspected upward ground movement due to Posidonia shale underground according to the land use plan and construction errors
- 8-year-old house in the same development: not legally divided plot (3 houses on 2 plots), agent claimed legal division (sent documents with condominium declaration), neighborhood dispute (not ideal in a condominium under self-management)
- 1950s development house: severe moisture problems in the basement including mold, agent already had an offer for exterior waterproofing (franchise concept with suction lance) which was not expensive, basement height under 1.8m (5 feet 11 inches), so not usable
- 1950s development house: sold after only 2 years (hidden defects?), superficial renovation (cosmetic upgrades but original substructure)
- several other houses that left little impression (location, layout, quality, price not suitable)
Then, at the beginning of 2018, an offer came up that didn’t fully meet our criteria but was in the same neighborhood.
- built mid-1958
- very high-quality construction and workmanship for the time
- architect-designed house (engineer) for a medical professional (MD)
- hillside location, split-level, integrated garage
- district heating with concealed convectors
- well maintained, so renovation was minimal (bathroom tiled + ceramics, new roof 2002, new windows 1995)
- well-kept garden, granite paving
- 165m² (1,776 sq ft) living space + 40m² (430 sq ft) utility space
- 905m² (9,740 sq ft) leasehold plot at a dead-end street
- 493,000 €
The house was actually larger than we needed, but the structure and architecture were excellent. Renovations were manageable (utility lines easily accessible, partly in shafts), and the leasehold was acceptable because the owners had prepaid their installments (there was a discount), so the annual fee was only 500€ (~$540). The leaseholder is the city of Wolfsburg, which by statute only raises interest rates upon resale (not during the lease term or inheritance). When purchasing the plot, the land value is calculated by the benchmark land value minus the redemption amount and with a 15% discount. In mid-2017, the offer for the land was therefore 118,000€ (~$128,000) (with today’s benchmark land value it would be about 150,000€ (~$162,000)). This was a bargain for the area and was included in the asking price according to the agent.
Still, after a second viewing with experts (not appraisers), we found enough arguments (wall crack, renovation needs) to negotiate the price down to 420,000€. The public offer was then reduced to 435,000€ (~$470,000).
A financing broker secured approval from the local savings bank (Sparkasse) for the mortgage (leasehold is a bit special here, mostly local banks are familiar). It was feasible as a 20-year full repayment loan (leasehold agreement had to be valid for at least another 10 years), with a potential buffer to save up the land price.
But there was one issue: the over-90-year-old occupant. She was looking for an apartment in a senior residence (ground floor, lake view). Every week we heard it was only a matter of days until one would become available. In the end, by mid-April, we had a reservation with ownership transfer no later than December, possibly sooner. So we committed to financing and arranged the notary appointment...
...and then a week later, there was a request for a meeting (bypassing the notary). The niece and sister explained that the reservation was declared invalid. The time pressure was too great. It wasn’t certain the apartment would be available yet. They felt the elderly woman couldn’t be expected to move into a care home. They wanted a purchase contract with more time — about a year (implicitly without a strict limit).
We only had 6 months interest-free financing extension, but could imagine a few more months. However, only with financial compensation (1,500€/month rental cost difference). The counterproposal was to buy as planned but with ownership transfer only after the occupant moves out (essentially the right to live there). This was not acceptable (due to hardship rules; in the end you own the house but cannot evict the old resident). The only outcome was an informal understanding: we remained interested, please inform us when the senior residence is arranged; if we find something else in the meantime we will get back to you. The agent (VR-Bank) was not very pleased since it had been difficult to get the three women to agree before. It wasn’t her fault; the dossier was the best prepared with all necessary documents and missing items obtained promptly.
Two weeks later there was another interested party. Moral of the story: we successfully lowered the price for others but they moved in in October 2017.
Here are some floor plans of the property as inspiration for other house planners:
The agent mentioned that in the residential area, maybe one property sells every 1–2 years. The rest are sold privately. Since we moved in, three houses have been demolished and replaced by new builds twice the size. Another is still a shell and is receiving a huge extension. None of these properties were publicly marketed...
...the search continues in the next post and how we finally found our home.
LordNibbler27 Nov 2019 10:23Now a look into the basement, original condition. There are 5 rooms: hallway, "heating room," fireplace room (with storage corner), laundry room, sauna room.
In the hallway, on the wall, we find the old meter cabinet/fuse box. There is a new staircase from around 2010. The cabinets on the left in the picture were beyond saving after 2.5 years without proper heating or ventilation.
Well, better than nothing, but this has to go first:
(All classic neutral wiring, black-gray and possibly red. No real equipotential bonding or dedicated grounding.)
Metal housing with sharp edges, which is bad for the insulation:
Fireplace room, authentically with wooden ceiling, curtains, and an added brick wall creating a storage area:
The storage room behind the wall was made "livable." Laminate flooring, drywall on the walls, and ceiling panels. Not a good idea for the vulnerable wall behind.
A small heating room. District heating comes in here, connected directly to the radiators at 10 bar and 100°C (212°F) without a heat exchanger.
The water connection is also hidden there:
In the hallway, on the wall, we find the old meter cabinet/fuse box. There is a new staircase from around 2010. The cabinets on the left in the picture were beyond saving after 2.5 years without proper heating or ventilation.
Well, better than nothing, but this has to go first:
(All classic neutral wiring, black-gray and possibly red. No real equipotential bonding or dedicated grounding.)
Metal housing with sharp edges, which is bad for the insulation:
Fireplace room, authentically with wooden ceiling, curtains, and an added brick wall creating a storage area:
The storage room behind the wall was made "livable." Laminate flooring, drywall on the walls, and ceiling panels. Not a good idea for the vulnerable wall behind.
A small heating room. District heating comes in here, connected directly to the radiators at 10 bar and 100°C (212°F) without a heat exchanger.
The water connection is also hidden there:
LordNibbler27 Nov 2019 10:26Tamstar schrieb:
Hmm… isn’t that the bathroom down here on the bottom left? This was a house we initially planned to buy, but the seller backed out. The floor plan is included purely for reference, as it is a good example of a split-level house.
You can find the floor plan for our current house in this post, where I’m looking for ideas for a future extension.
LordNibbler27 Nov 2019 10:57A laundry room, tiled up to the ceiling. In the back left corner, there is slight water ingress during rain (through the grout).
Sauna room: to the left of the sauna is a seating basin used as a Kneipp basin. There is also a sink from the original 1960 kitchen with a boiler, and just outside the picture to the left, a door with stairs leading to the garden. The sauna (built in 1968) was disconnected, only the light works. Inside there is storage for spare tiles and natural stones.
(Note the wooden ceiling – all slotted screws, a challenge when dismantling)
The objective: New water pipes must somehow be routed from the utility room to the laundry room. The path through the corridor is unsuitable. Therefore, the route goes through the chimney room and sauna room. Everything in the way must be removed (ceiling paneling, sauna, fireplace brick wall in the chimney room). The tiles on the wall are also problematic as pipes need to be installed there and removing tiles later is difficult. Since the sauna room is to be converted into a workshop, tiles there are not necessary, and in the laundry room a plastered wall is sufficient.
Step 1: Storage corner in the chimney room:
A musty room. The drywall appears to be problematic, so everything was removed on the day of handover:
(December 15, 2018)
Yes, the wall suffered damage (same viewpoint facing the other direction):
(December 16, 2018)
The passage is in the wrong place for the planned pipe route, so it was already widened and the wooden ceiling removed as well:
(December 19, 2018)
At the same time, the old water supply to the kitchen/bathroom/laundry room was shut off in the corridor and a construction water tap installed:
Drillings from the chimney room to the sauna room, alignment of the new supply route:
"Freeing" the wall and wastewater pipe in the laundry room from the tiles:
(December 20, 2018)
Sauna room: to the left of the sauna is a seating basin used as a Kneipp basin. There is also a sink from the original 1960 kitchen with a boiler, and just outside the picture to the left, a door with stairs leading to the garden. The sauna (built in 1968) was disconnected, only the light works. Inside there is storage for spare tiles and natural stones.
(Note the wooden ceiling – all slotted screws, a challenge when dismantling)
The objective: New water pipes must somehow be routed from the utility room to the laundry room. The path through the corridor is unsuitable. Therefore, the route goes through the chimney room and sauna room. Everything in the way must be removed (ceiling paneling, sauna, fireplace brick wall in the chimney room). The tiles on the wall are also problematic as pipes need to be installed there and removing tiles later is difficult. Since the sauna room is to be converted into a workshop, tiles there are not necessary, and in the laundry room a plastered wall is sufficient.
Step 1: Storage corner in the chimney room:
A musty room. The drywall appears to be problematic, so everything was removed on the day of handover:
Yes, the wall suffered damage (same viewpoint facing the other direction):
The passage is in the wrong place for the planned pipe route, so it was already widened and the wooden ceiling removed as well:
At the same time, the old water supply to the kitchen/bathroom/laundry room was shut off in the corridor and a construction water tap installed:
Drillings from the chimney room to the sauna room, alignment of the new supply route:
"Freeing" the wall and wastewater pipe in the laundry room from the tiles:
LordNibbler27 Nov 2019 11:51Thanks to the momentum and weight of a 6kg (13lb) hammer, the downpipes on both sides of the laundry room are history.
(25.12.2018)
The damp corner is cleared of tiles for further inspection:
(26.12.2018)
(The cause and a fairly simple solution will be discussed later under "Small issues that take a lot of time at the outdoor areas")
If you’re installing a pipe, you need a core drill:
With a water-cooled pressure tank for the fullest drilling experience.
Holes drilled, basement turned into a rubble field:
Laundry room without tiles, but with thick-bed mortar remnants:
Sauna dismantled (and wood ceiling removed):
(05.01.2019)
Found a buyer to pick up the sauna stove via classifieds.
Obtained a disposal confirmation from the city for unknown insulation materials and two asbestos panels to ensure proper disposal, each for a flat fee of 9€ (approximately 10 USD).
Away with the Kneipp corner and tiles in the sauna room:
(10.01.2019)
Fittingly, a note for free scrap collection was in the mailbox. No problem, I don’t want basement waste in my car trunk and the bathtub is gone:
Also gone is the partition wall in the fireplace room. Neatly sorted by construction debris and aerated concrete (hazardous waste!):
Next, the walls need to be worked on in order to lay pipes.
The damp corner is cleared of tiles for further inspection:
(The cause and a fairly simple solution will be discussed later under "Small issues that take a lot of time at the outdoor areas")
If you’re installing a pipe, you need a core drill:
With a water-cooled pressure tank for the fullest drilling experience.
Holes drilled, basement turned into a rubble field:
Laundry room without tiles, but with thick-bed mortar remnants:
Sauna dismantled (and wood ceiling removed):
Found a buyer to pick up the sauna stove via classifieds.
Obtained a disposal confirmation from the city for unknown insulation materials and two asbestos panels to ensure proper disposal, each for a flat fee of 9€ (approximately 10 USD).
Away with the Kneipp corner and tiles in the sauna room:
Fittingly, a note for free scrap collection was in the mailbox. No problem, I don’t want basement waste in my car trunk and the bathtub is gone:
Also gone is the partition wall in the fireplace room. Neatly sorted by construction debris and aerated concrete (hazardous waste!):
Next, the walls need to be worked on in order to lay pipes.
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