Good idea to pay 10% deposit for loft conversion (40k) using credit card? - HotUKDeals
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Good idea to pay 10% deposit for loft conversion (40k) using credit card?

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I have signed an order form with a loft company for a dormer loft conversion costing 40k. The company does have a deposit protection scheme, which will protect the deposit prior to the commencement of… Read More
TheRatedSeller Avatar
9m, 4w agoPosted 9 months, 4 weeks ago
I have signed an order form with a loft company for a dormer loft conversion costing 40k. The company does have a deposit protection scheme, which will protect the deposit prior to the commencement of the contract for up to 25% of the contract value. (They also have a Insurance Backed Guarantee IF the company ceases to trade). I have a credit card with HSBC and think that it would be better to use my credit card for the first couple of payments £10,000 as after this the basics of the construction will be complete and I would have a better understanding of the company.

However, I checked the s75 law which states that purchases between £100 and £30,000 are covered. Would I still be eligible for this since the payment that will paid using the credit card is only £10,000 however the total cost is above the top figure.

I also will be checking the company for an CCJ.

Would you recommend doing anything else and would using a CC be the best idea?
TheRatedSeller Avatar
9m, 4w agoPosted 9 months, 4 weeks ago
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#1
40k loft conversion!

What are you having it converted to? The Taj Mahal?:D
#2
If I was paying such a large amount, I would prefer to pay from an American express card as they have better protection. Have you considered one of these? They also have very good customer service in case anything does go wrong
#3
I love how you first port of call about spending 40k is HUKD and not a legal expert on this subject.
banned#4
Think you have to pay any deposit in one payment.

But who am I? No lawyer for sure
#5
haritori
I love how you first port of call about spending 40k is HUKD and not a legal expert on this subject.
Don't pretend this is a new thing and never seen on HUKD before X)
#6
haritori
I love how you first port of call about spending 40k is HUKD and not a legal expert on this subject.


Ha love it ;)

Edited By: westy125 on Aug 27, 2016 22:00: error
#7
haritori
I love how you first port of call about spending 40k is HUKD and not a legal expert on this subject.


independent free advice ....correct advice I'm unsure X)
#8
ashmac
haritori
I love how you first port of call about spending 40k is HUKD and not a legal expert on this subject.
independent free advice ....correct advice I'm unsure X)
Most advice on here I'd trust for a 4 pack of beans - but for a £40k loft conversion - do be serious oO
#9
Sometimes its best to ask people who have gone through the process for advice. 40k is the average for a dormer loft conversion in London. Not sure why some people feel that it is overpriced. Apologise if there was any mistake in the details, however the deposit is £4000 and not £10000. I was just trying to say that I wanted to pay the deposit and subsequent payments using credit card. Im not sure whether a legal expert is required because even though it is a large amount of money, many people have their loft converted paying out similar sort of cash. But thanks anyway and hope more people can help :)
#10
Mutley is the guy you want to ask. The resident millionaire knows how to look after his money :)
banned#11
moneysavingkitten
Mutley is the guy you want to ask. The resident millionaire knows how to look after his money :)

Please ignore this comment.
#12
http://www.relatably.com/m/img/show-off-memes/55653411.jpg
#13
£40k my God, can you sub me £2.000 just to move from mine and pay for removal van and decorate another place!
what size house are you having done! friend had theirs done into a bedroom costing less than £3.000 without furnishings but again do suppose depends on the area, I'd rather be safe and go ask a pro or ask Martin Lewis
#14
I have had various quotes and theres not much variation. The cheapest was 36k and the most expensive was 39k. Its a 3 bed terraced house in London. Not very large, but worth it considering house prices are very high in this area right now.
#15
If you use the card for part payment, as long as it is over £100, then yes you will be covered. :)
#16
Hi

Which company are they? Planning to get a loft conversion done in next few years. Living in London too, £40k seems what I would expect
#17
TheRatedSeller
Sometimes its best to ask people who have gone through the process for advice. 40k is the average for a dormer loft conversion in London. Not sure why some people feel that it is overpriced. Apologise if there was any mistake in the details, however the deposit is £4000 and not £10000. I was just trying to say that I wanted to pay the deposit and subsequent payments using credit card. Im not sure whether a legal expert is required because even though it is a large amount of money, many people have their loft converted paying out similar sort of cash. But thanks anyway and hope more people can help :)

As someone who is going to go through this process myself soon. How many payments and what length of time do you expect the 40k to be paid over?

I expect mine will cost similar if not a little more, so was initially planning on splitting the work into phases over 3 years to make it affordable (assumed as standard it was a pay the lot in one lump sort of thing).

To answer your question: Why not ask for the invoice to be split into 2 at 20k so your credit card would then cover each? Maybe structure for one invoice, and interior / fittings for the other?

Edited By: delusion on Aug 28, 2016 08:49
#18
delusion
TheRatedSeller
Sometimes its best to ask people who have gone through the process for advice. 40k is the average for a dormer loft conversion in London. Not sure why some people feel that it is overpriced. Apologise if there was any mistake in the details, however the deposit is £4000 and not £10000. I was just trying to say that I wanted to pay the deposit and subsequent payments using credit card. Im not sure whether a legal expert is required because even though it is a large amount of money, many people have their loft converted paying out similar sort of cash. But thanks anyway and hope more people can help :)

As someone who is going to go through this process myself soon. How many payments and what length of time do you expect the 40k to be paid over?

I expect mine will cost similar if not a little more, so was initially planning on splitting the work into phases over 3 years to make it affordable (assumed as standard it was a pay the lot in one lump sort of thing).

To answer your question: Why not ask for the invoice to be split into 2 at 20k so your credit card would then cover each? Maybe structure for one invoice, and interior / fittings for the other?


Hi Delusion. The 40k will be paid over around 8 payments (first is deposit and last is when building control sign it off). The whole process will take around 8 weeks. I am not sure if the company would be willing to split the invoice, however I can certainly ask. However I do not wish to pay all of the payments using a credit card. Just the deposit (and possibly next couple payments) so that I can get an understanding of the quality of work.
#19
Owning properties in london, i am fully aware of how expensive building works are. Always cost an arm and a leg. But that is not even the major concern, the major concern is to get someone to do a good job and finish it within a reasonable timescale.

If you have received three quotes around the 40k mark, then it sounds like that is the correct price. Google the company for reviews. Google their email address and phone number to see if anything comes up.

Allowing you to spread the payments over 8 installments sounds very reasonable. Make sure that there is a clear marker of when each installment is made. For example, there is no point paying the 4th installment when not much work has been done, even though the work has started.

I would agree a schedule of work with time for completion to mark the 8 payments. You already have the deposit and final payment defined but you need to have agreement in writing about the other payments if you do not already have them.

Timescale agreed in writing is very important for a big project like this and payments should be pegged to the timescale so it gives the builder incentives to complete works to get his money, else he just lets work slip.

Paying the deposit with a credit card is a good idea as it gives you protection if they don't start the work and do a runner with the £4k. The credit card protection stops there as I doubt it will cover disputes of workmanship and timescale for completion once the work starts. That will have to dealt with through the courts, which is why you need everything agreed in writing in case you end up in court and have to prove events.
#20
I'd pop it on a credit card that gives Cashback, but make sure you pay it off at the end of the month.

Enjoy the extra space!
#21
fagash5
£40k my God, can you sub me £2.000 just to move from mine and pay for removal van and decorate another place!
what size house are you having done! friend had theirs done into a bedroom costing less than £3.000 without furnishings but again do suppose depends on the area, I'd rather be safe and go ask a pro or ask Martin Lewis
I smell bs. No way would anyone get a dormer loft conversion done for £3k
#22
sickly sweet
I'd pop it on a credit card that gives Cashback, but make sure you pay it off at the end of the month.
Enjoy the extra space!

I did this once when i bought a house. I took out a credit card that gave 4% cashback during the first three months. I spent £24k on it within the three months to renovate the property and ended up with £960 of cashback. Well cushty :3

Cashback credit cards aren't readily available these days, but still around with current account incentives.
#23
mutley1
Owning properties in london, i am fully aware of how expensive building works are. Always cost an arm and a leg. But that is not even the major concern, the major concern is to get someone to do a good job and finish it within a reasonable timescale.

If you have received three quotes around the 40k mark, then it sounds like that is the correct price. Google the company for reviews. Google their email address and phone number to see if anything comes up.

Allowing you to spread the payments over 8 installments sounds very reasonable. Make sure that there is a clear marker of when each installment is made. For example, there is no point paying the 4th installment when not much work has been done, even though the work has started.

I would agree a schedule of work with time for completion to mark the 8 payments. You already have the deposit and final payment defined but you need to have agreement in writing about the other payments if you do not already have them.

Timescale agreed in writing is very important for a big project like this and payments should be pegged to the timescale so it gives the builder incentives to complete works to get his money, else he just lets work slip.

Paying the deposit with a credit card is a good idea as it gives you protection if they don't start the work and do a runner with the £4k. The credit card protection stops there as I doubt it will cover disputes of workmanship and timescale for completion once the work starts. That will have to dealt with through the courts, which is why you need everything agreed in writing in case you end up in court and have to prove events.




Hi Mutley. Thanks for the depth of detail. As you have stated, finding quality tradesmen is a nightmare because there is always some negative reviews. The company is Absolute Lofts and they have really good reviews on Google. However, it is really easy to create fake reviews using different accounts. But surely 30+ good reviews is too excessive and most of them should be real, right? Also I have had a thorough look on Forums where they have a mixed reviews. But nearly all of builders that I have had a look at, have good/bad feedback. The positive is that they have an office and apparently have alot of past and present clients (I will obviously ask for references). They have given me a schedule of 8 payments including details of what will be done using those payments such as delivery of materials, dormer construction and the exact amount that should be paid. Also once construction work has started, I will be taking photos with each payment. I have asked whether they accept credit cards and will be looking to pay using a CC. Do you have any other advice that would give me extra help in court (god forbid) if a dispute/problem occurs?
#24
chocci
fagash5
£40k my God, can you sub me £2.000 just to move from mine and pay for removal van and decorate another place!
what size house are you having done! friend had theirs done into a bedroom costing less than £3.000 without furnishings but again do suppose depends on the area, I'd rather be safe and go ask a pro or ask Martin Lewis
I smell bs. No way would anyone get a dormer loft conversion done for £3k

Agree. To renovate a loft extension at a stretch, but never for actually building one. The materials alone will be probably cost more than this!
#25
mutley1
sickly sweet
I'd pop it on a credit card that gives Cashback, but make sure you pay it off at the end of the month.
Enjoy the extra space!
I did this once when i bought a house. I took out a credit card that gave 4% cashback during the first three months. I spent £24k on it within the three months to renovate the property and ended up with £960 of cashback. Well cushty :3
Cashback credit cards aren't readily available these days, but still around with current account incentives.
Amex do 5% cashback for first 3 months
#26
sickly sweet
I'd pop it on a credit card that gives Cashback, but make sure you pay it off at the end of the month.

Enjoy the extra space!


Will definitely have a look at this :) Which credit card bank would be recommended for best consumer service in a dispute with a service (s75)?
#27
TheRatedSeller
mutley1
Owning properties in london, i am fully aware of how expensive building works are. Always cost an arm and a leg. But that is not even the major concern, the major concern is to get someone to do a good job and finish it within a reasonable timescale.

If you have received three quotes around the 40k mark, then it sounds like that is the correct price. Google the company for reviews. Google their email address and phone number to see if anything comes up.

Allowing you to spread the payments over 8 installments sounds very reasonable. Make sure that there is a clear marker of when each installment is made. For example, there is no point paying the 4th installment when not much work has been done, even though the work has started.

I would agree a schedule of work with time for completion to mark the 8 payments. You already have the deposit and final payment defined but you need to have agreement in writing about the other payments if you do not already have them.

Timescale agreed in writing is very important for a big project like this and payments should be pegged to the timescale so it gives the builder incentives to complete works to get his money, else he just lets work slip.

Paying the deposit with a credit card is a good idea as it gives you protection if they don't start the work and do a runner with the £4k. The credit card protection stops there as I doubt it will cover disputes of workmanship and timescale for completion once the work starts. That will have to dealt with through the courts, which is why you need everything agreed in writing in case you end up in court and have to prove events.



Hi Mutley. Thanks for the depth of detail. As you have stated, finding quality tradesmen is a nightmare because there is always some negative reviews. The company is Absolute Lofts and they have really good reviews on Google. However, it is really easy to create fake reviews using different accounts. But surely 30+ good reviews is too excessive and most of them should be real, right? Also I have had a thorough look on Forums where they have a mixed reviews. But nearly all of builders that I have had a look at, have good/bad feedback. The positive is that they have an office and apparently have alot of past and present clients (I will obviously ask for references). They have given me a schedule of 8 payments including details of what will be done using those payments such as delivery of materials, dormer construction and the exact amount that should be paid. Also once construction work has started, I will be taking photos with each payment. I have asked whether they accept credit cards and will be looking to pay using a CC. Do you have any other advice that would give me extra help in court (god forbid) if a dispute/problem occurs?

At the end of the day, you have to rely on gut instinct, as to the tradesman you choose. For large jobs, I always choose the person that I felt most trust in, after all the searches and quotes.

The company allowing you to pay in installments with clear definition of works sounds organised and professional. Just make sure you keep a record of conversations and agreements in writing, so if you have discussed anything on the phone, email to confirm the points discussed so you have a written record of what had been said.

More than likely, you will be fine. But in the unlikely event that you have to go down the court route, you will need to show everything in writing as proof.

Once i have chosen a tradesman to work for me, i always do my best to get on his right side and work with him. It is a team effort and not just you employing him. Give him as much help as you can to make things easy for him. If he feels you are going out of your way to be nice to him and make his work easy, then he will be more inclined to go that extra mile to get the work done.
#28
chocci
mutley1
sickly sweet
I'd pop it on a credit card that gives Cashback, but make sure you pay it off at the end of the month.
Enjoy the extra space!
I did this once when i bought a house. I took out a credit card that gave 4% cashback during the first three months. I spent £24k on it within the three months to renovate the property and ended up with £960 of cashback. Well cushty :3
Cashback credit cards aren't readily available these days, but still around with current account incentives.
Amex do 5% cashback for first 3 months

I had a capital one cashback card. Amex is not accepted every where and i find their credit limit is low initially so the ceiling on the cashback is capped by the low credit limit.

When i has the amex, it also had a £200 cashback limit on the year. I was lucky with the capital one card as that gave me high credit limit and had no cap on total cashback that can be claimed in the year.
#29
dereklogan7
If you use the card for part payment, as long as it is over £100, then yes you will be covered. :)


As far as I'm aware this is correct. Ignore the nonsense posted by others. What you need to do costs what it does...
#30
I would ensure that something is put in writing by the Company as to what happens when they overstep the timescale. It makes them stay more on time than blaming everything under the sun for when the project is 10 months late!! What compensation they will offer you for all the extra hassle you will have to endure. If its winter months and building it could really damage your property as wont be water tight. If your still living there that will make it really horrible to endure. Make sure details of keeping the place water tight every evening are in the contract - many have not and lived to regret it. A % off the price for any inconvenience cause to you for extra damage caused or delayed finishing times would help a lot and a statement that all materials will be of a good standard.
#31
googley2
I would ensure that something is put in writing by the Company as to what happens when they overstep the timescale. It makes them stay more on time than blaming everything under the sun for when the project is 10 months late!! What compensation they will offer you for all the extra hassle you will have to endure. If its winter months and building it could really damage your property as wont be water tight. If your still living there that will make it really horrible to endure. Make sure details of keeping the place water tight every evening are in the contract - many have not and lived to regret it. A % off the price for any inconvenience cause to you for extra damage caused or delayed finishing times would help a lot and a statement that all materials will be of a good standard.


They are giving me £500 for every week it runs over the 12 week agreed timescale. However this does not include periods where work is stopped due to weather. I was thinking about getting a tin hat where they lay metal sheets on scaffolding above the roof. this prevent rain/snow coming into the roof. They however want £1800 for this.

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