QlriPower
2015-07-21 17:43:03
- #1
Hello,
I am new here because I have a complex concern and would like to get some advice.
A brief background: I am into classic cars, otherwise a first-class do-it-yourselfer, I once trained as an electronics technician, but now I work in quality management and need something with a lot of space.
I came across this commercial property:
Just over 1000m² of floor space, an old residential house, about 100 years old, solid construction, but has been maintained repeatedly. It was converted into an office at some point. Next to it, about 60 years ago, two small halls were added, which together have about 300m², and above one of the halls there is a large open-plan office. Living space would be about 350m² in total. Altogether, the building has over 1000m² of space plus 2 double garages with storage sheds above them and more.
The location is also very good for me, so all in all and due to the possibilities, it is almost perfect!
But there are drawbacks: it is insanely large, as will be the heating costs. The energy refurbishment could run into six figures. New windows also need to be installed. The plan here is to wait the first year and see what the bottom line really is. The heating is oil, by the way.
And then decide how to proceed. Insulation of the attic is planned immediately because there is none at the moment.
What still needs to be done: one of the toilets must be converted into a bathroom and one of the offices must become a kitchen.
Oh yes, since it is currently used commercially: a change of use to partial residential should not be a problem, as there are residential houses all around. The halls are currently leased to commercial enterprises.
I have already viewed the property with an expert, his valuation came to €155,000. The seller wants €200,000. The plot is in the "unplanned inner area," where residential space is calculated at €180 and commercial at €50 per m². So the expert calculated 1/3 commercial to arrive at this price. If everything were calculated as residential space, the plot would be worth €183,000. According to the expert, the buildings on it are worth almost nothing because it is difficult to find a buyer who is looking for such a thing. No one wants to take on such a huge apartment with the need for refurbishment, and proper commercial use is also not possible downstairs since it is now in the middle of a residential area.
So this would have to be argued over; the value will probably be between €155k and €180k.
And now comes the big BUT: it used to be a small machine factory until around 1980. After that, it was used for other purposes (food). In 1993/94 an investigation was carried out and it was found that there are contaminated sites in the soil. To be precise, chlorinated hydrocarbons. Unfortunately, I don’t have a detailed report. It was only mentioned briefly in a comprehensive report on the adjacent hall (which used to belong to the property but has since been sold), which had the same problem and was then remediated by soil air extraction. The environmental agency was also involved there. The remediation of "my" part was postponed. An excerpt from the environmental agency also states that "my" property has status "B" and the soil must be tested and possibly replaced upon demolition of the building.
Of course, this nasty contamination now reduces the value of the property. I cannot get more information, the seller does not want to commission a new expert report because it is too expensive for him. Or he has something to hide. But I can’t buy a pig in a poke; I want to know exactly what the situation is.
I definitely do not want to demolish the thing; I won’t find such a perfectly suitable property for me again so quickly. I will offer the seller to cover the costs of the expert report if the purchase happens. Let’s see if he agrees.
What are your inputs on the topic of contaminated sites? How would you proceed further?
I have already been explained how these reduce the value of the plot; it is calculated based on the planned remaining useful life and remediation costs.
I am new here because I have a complex concern and would like to get some advice.
A brief background: I am into classic cars, otherwise a first-class do-it-yourselfer, I once trained as an electronics technician, but now I work in quality management and need something with a lot of space.
I came across this commercial property:
Just over 1000m² of floor space, an old residential house, about 100 years old, solid construction, but has been maintained repeatedly. It was converted into an office at some point. Next to it, about 60 years ago, two small halls were added, which together have about 300m², and above one of the halls there is a large open-plan office. Living space would be about 350m² in total. Altogether, the building has over 1000m² of space plus 2 double garages with storage sheds above them and more.
The location is also very good for me, so all in all and due to the possibilities, it is almost perfect!
But there are drawbacks: it is insanely large, as will be the heating costs. The energy refurbishment could run into six figures. New windows also need to be installed. The plan here is to wait the first year and see what the bottom line really is. The heating is oil, by the way.
And then decide how to proceed. Insulation of the attic is planned immediately because there is none at the moment.
What still needs to be done: one of the toilets must be converted into a bathroom and one of the offices must become a kitchen.
Oh yes, since it is currently used commercially: a change of use to partial residential should not be a problem, as there are residential houses all around. The halls are currently leased to commercial enterprises.
I have already viewed the property with an expert, his valuation came to €155,000. The seller wants €200,000. The plot is in the "unplanned inner area," where residential space is calculated at €180 and commercial at €50 per m². So the expert calculated 1/3 commercial to arrive at this price. If everything were calculated as residential space, the plot would be worth €183,000. According to the expert, the buildings on it are worth almost nothing because it is difficult to find a buyer who is looking for such a thing. No one wants to take on such a huge apartment with the need for refurbishment, and proper commercial use is also not possible downstairs since it is now in the middle of a residential area.
So this would have to be argued over; the value will probably be between €155k and €180k.
And now comes the big BUT: it used to be a small machine factory until around 1980. After that, it was used for other purposes (food). In 1993/94 an investigation was carried out and it was found that there are contaminated sites in the soil. To be precise, chlorinated hydrocarbons. Unfortunately, I don’t have a detailed report. It was only mentioned briefly in a comprehensive report on the adjacent hall (which used to belong to the property but has since been sold), which had the same problem and was then remediated by soil air extraction. The environmental agency was also involved there. The remediation of "my" part was postponed. An excerpt from the environmental agency also states that "my" property has status "B" and the soil must be tested and possibly replaced upon demolition of the building.
Of course, this nasty contamination now reduces the value of the property. I cannot get more information, the seller does not want to commission a new expert report because it is too expensive for him. Or he has something to hide. But I can’t buy a pig in a poke; I want to know exactly what the situation is.
I definitely do not want to demolish the thing; I won’t find such a perfectly suitable property for me again so quickly. I will offer the seller to cover the costs of the expert report if the purchase happens. Let’s see if he agrees.
What are your inputs on the topic of contaminated sites? How would you proceed further?
I have already been explained how these reduce the value of the plot; it is calculated based on the planned remaining useful life and remediation costs.