Barratt try to do what the Government can't!

ginvzt

I agree with you on the wording!!!! They are trying to put as many tricks as they can!

Btw, who can guarantee that they will still be around in 3 years time?...

WTF?_2

Nikkster wrote: »

When I first saw the advert in the newspaper this morning I read it as they would give you back 15% of the drop in price - wonder if they've chosen their wording to be as unclear as possible on the offchance anyone might be interested?

Nah - they're just trying anything that they can to prop up asking/selling prices.

Hardly very useful to would-be buyers, just lower the damn price to something sensible Barratt!


I think it's starting to sink in that the market will only recover when prices are at a level that buyers feel comfortable with.

Delaying that happening by desperately propping up prices using whatever means helps no-one - not buyers, not sellers, not agents, not people whose jobs depend on the market.

Nikkster

Bet they have a whole raft of tricks up their sleeve! They're probably going to have to use them all too...

GDB2222

Terms of the offer (so as to save unnecessary speculation) are:

3 Year Price Guarantee
Buy one of our homes by taking advantage of the 3 year price guarantee offer and you can protect yourself against a fall in the housing market of up to 15% for the first 3 years of ownership.*
Offer available on selected plots only, subject to availability. Offer available on completions on or before 19/12/08. Remaining 15% deferred loan is payable on the sale or transfer of the property or any time up to 10 years from completion. See www.barratthomes.co.uk for full terms and conditions..
1. Offer cannot be used in conjunction with any other Barratt Homes offer other than £1,000 voucher and the Barratt Shared Equity deal offer to delay payment of 15% of the value of your new home for up to 10 years.
2. Offer only available on selected plots up to a maximum purchase value of £300,000.
3. Barratt Homes will reimburse a drop in value up to a maximum of 15% of the original net purchase price at the date of original legal completion if you complete on the future sale within 3 years from the date of legal completion.
4. Valuations of any future sale price for the purposes of this offer will be based on Regional House Price Indexes (see www.landregistry.gov.uk for details of current house price index) and may be subject to a specific valuation by an independent valuer appointed by Barratt. All decisions by Barratt’s independent valuer on the future value of your property are final.
5. In the event that a property has suffered anything more than the reasonable amount of wear and tear associated with living in a new build house for up to three years, or the property has been deliberately devalued in any way, Barratt reserves the right to withhold that amount of any shortfall attributed to this dilapidation as may be determined by an independent valuer.
6. This offer is not available for buy to let properties.
7. No shortfall payment will be made for sales completing within the first 6 months of ownership from the date of legal completion of your purchase.
8. If you buy a home with your own deposit and mortgage (not on a Shared Equity basis), any shortfall in the value of the property at the time of sale will be credited to the person or persons named on the deeds to the property, within 28 days of completion.
9. If you buy a home on a Shared Equity deal, that portion of the outstanding loan at the time of completion up to 15% will be written off by Barratt.
10. Where there is any conflict between the terms and conditions of a shared equity offer and this offer (if taken in conjunction with one another), the terms and conditions of this offer will prevail.
11. You must notify Barratt in writing of any intention to sell to take advantage of this offer in any future sale. Please provide copies of all valuations to Barratt finance director at the registered office of BDW Trading Limited immediately upon receipt to claim any shortfall if you are advised by your agent that the property is likely to achieve less than the original purchase price.
12. This offer lapses following the first sale or transfer of the property following legal completion of your Barratt purchase and is non-transferable to future purchasers of the property.
13. Barratt is only liable for any shortfall where the shortfall arises from a genuine transaction at an arms length and not to transfers between friends or family members. Vendors may be asked to sign a confirmation at the time of sale stating that the sale is a bona fide transaction at an arms length and that there has been no transaction at an undervalue.
14. A seller should obtain the best price available for their property on the open market. Failure to do so may result in a refusal to pay all or part of the shortfall claimed by the seller at the time of sale. Legal completion of your purchase must be by 19 December 2008.
15. This offer becomes null and void in the event of personal insolvency or repossession of the property by the Mortgage Holder.
16. Barratt reserves the right to terminate this offer for anyone found to be in breach of these terms and conditions and to refuse to pay or take proceedings to reclaim any amount already paid out by way of a shortfall in the event of dishonesty on the part of the purchaser.
17. Failure to notify the person set out at clause 11 in writing with the formal provision [in the form of written confirmation from your estate agent] of all valuations within 7 days of placing your property on the market may result in this offer being withdrawn. In any event, if you do not agree the value of any drop in sale price with Barratt before legal completion, Barratt will not be liable for any portion of that drop which has not been agreed. This applies to the whole amount in the event that you fail to notify Barratt of your intention to sell and provide valuations before legal completion.
18. In the event of a dispute over the valuation, the value of any drop will be calculated on the basis of the valuation of the independent RICS valuer appointed by Barratt.
19. Barratt will only provide payment for any shortfall upon compliance with these terms and conditions and receipt of a formal letter from your solicitor confirming legal completion has taken place.

WTF?_2

I wouldn't feel at all 'protected' after reading that.

Sounds like a load of rubbish that could be refused for any number of reasons. That's if Barratt still exist in three years.....

wymondham

It's a bit like the legal bit on software packages (you know where you click 'accept') - basically means they can do what they like and you have no redress...

Guy_Montag

So no additional discounts available, only available on the worst plots. Maximum of £45k back based on valuation by Barrat appointed surveyor. If Barrat do not feel you got a fair price tehy will not pay up.

Only got 30 months to take advantage of the offer - what's the typical market to completion time these days? If you go bankrupt, you're stuffed too.

mewbie_2

14. A seller should obtain the best price available for their property on the open market. Failure to do so may result in a refusal to pay all or part of the shortfall claimed by the seller at the time of sale. Legal completion of your purchase must be by 19 December 2008

So if you can't sell it on the market there is no protection at all.

Bf109

Hahaha!

14. A seller should obtain the best price available for their property on the open market. Failure to do so may result in a refusal to pay all or part of the shortfall claimed by the seller at the time of sale. Legal completion of your purchase must be by 19 December 2008.

In other words, if Barrat dont think you got a good enough price, they aint payin!


Not to mention 18. In the event of a dispute, one of our people will provide the correct valuation!

GDB2222

Yes, put at its simplest, it stinks!