We've just signed a contract on a house with a 50+ year old boiler and 50 year old underground oil tank. The house currently uses oil heat as a backup to the heat pump. The seller says he has to manually flip the switch on the boiler to turn the oil heat on when it gets to 32 degrees.
The oil tank inspection found a suspected petroleum release (borderline oil contamination and about 1 inch of water in the tank.) The company who inspected the tank is now required to report this to the Department of Environmental Quality who may require the seller to remove the oil tank from service.
The house inspector says the heating system should be rewired so it doesn't require manual intervention to switch to oil heat when it gets cold, and the boiler should be serviced. ($200) The house has 150 amp service with a couple of what he called "double taps" in the electrical panel - said he questioned whether 150 amps was enough. On inspection, they also found cracks and moisture damage in the furnace flue liner, failing parged morter within the smoke chamber. He basically said the furnace flue needed to be relined and pipe replaced ($2,000 plus for repairs/permits/etc.)
What would you recommend repairing all of this and replacing the underground tank with an above ground tank? Or just taking it all out of service and using heat strips or gas as backup. The house already has two gas fireplaces.