Buying new house - valuation from mortgage company £30,000 less that asking price

poppysarah

Ah well - keep your eyes out for a rental in the area you want and save like mad for a deposit. I'm sure wimpey will have some houses still for sale next year ... maybe even cheaper.

Conrad

Its nonsensical advice to go see a Solicitor. You have a brain and know whether or not you want to pay the price.
Im offering myself at the moment on newbuilds about 50% less than the price they were sold for to the original owners a year ago (since repo'd).

You as a buyer hold the whip hand - Id offer £45k off to allow for further market drops, and be prepared to walk away.

Incisor

stimpssl wrote: »

Ginvzt, To me it is false advertising. They are advertising a scheme to help people get on the property ladder in this rubbish climate and yet they are now penalising us for using a scheme that they promote massively. They should have a clause to say that you can apply for the scheme but you have to pay £30,000 over the top for the house but you won't get the house because you wont get a mortgage on the house. If we had a deposit we would tell them to stick it. We have even said okay we will purchase 100% of the house at the £160,000 with Wimpey paying our 5% (which they advertise also) and they have said they will only sell the house for £160,000 to someone who has a deposit. They are living in cuckoo land in the current climate.

Listen up. 75% shared ownership. There is only 1 way in which I think that it can be financed and that is that the builder sells the 25% to an investor for much less than 25%. So that means that if the financial climate means that the builder gives discounts, then with shared ownership, the investor in the 25% gets the lion's share of the discount the builder is prepared to give on the whole property. Another reason why shared ownership is to be avoided.

Treadmill

I'd pay the asking price as long as they agree to extend the period for paying back the 25% to 100 years... Thats a fair compromise

Treadmill

I'd pay the £189,000 as long as they agree to extend the period for paying back the 25% to 100 years at todays value... Thats a fair compromise. How much would 25% of the price of a house purchased 100 years ago be worth now... A tenner ?

sniperpenguin

I am not a snob or anything but my sister brought a new house a couple of years ago and has got the most awful neighbours living in the same house as them but are social housing. We are not prepared to buy a house in those circumstances.

<RANT>
You are being a "snob" basically. :mad: Social housing is essentially discounted properties made available via the council in which it is built - Often offered to those finding it hard to get on the ladder, due to lower income or those with no deposit... i.e. people like YOU. Infact, in some areas you would not even qualify due to no deposit (those councils refer to it as "effort to save")

Awful neighbours are result of their values and upbringing, not the amount of their mortgage.

<END RANT>

Wimpey have told us that because of there only being 23 plots they do not have to give any to social housing

All new builds need to have a % affordable housing. The only alternative is to effectively "buy off" the requirement by paying a sum to the local council's housing fund which is then used to offer larger discounts on other builds, so the Buyer still see's a benefit.

i hope you pay hardball to go for this £160,000 for 100% deal that others are recommending. You hold all the cards here, and your only downfall will be your desire for that house and your Hiasynth bucket-esque fear of the hunchback inhabitants you think are living in the discounted property on other plots :rolleyes:

poppysarah

If the social housing / affordable housing thing is vital though you should ask them to put it in writing that none has been built or sold for that purpose and that it's all OO.

£10 says they won't.

One bad landlord is all it takes to run down a street.

sniperpenguin

poppysarah wrote: »

If the social housing / affordable housing thing is vital though you should ask them to put it in writing that none has been built or sold for that purpose and that it's all OO.

£10 says they won't.

One bad landlord is all it takes to run down a street.

Exactly Also...

There is one apartment that is rented.

So living on a plot where somebody can just about afford a discount house is scary to you, but somebody who cant afford a place altogether is fine?

Im sorry to press this matter, but it appears that your mis-conception of "social housing" may be ruling out other potential properties (and as a result increasing your emotional attachment to this one).

Anybody can apply to be on the affordable housing scheme, regardless of circumstances. It is NOT council housing, and you are not "put" in one. There is a (v.long) list, and when some of these properties become available they are offered to the people at the top of the list (plus a few more below for cover) showing the "retail" and the "discounted" prices.

Let me give you of an example of a recent build of 42 plots and apartments on the North wales coast.

Number of "lo-cost" housing = 5 (2 bedroom shoeboxes, not even a hallway and cheap 'n nasty build)
Retail value = £129,995
"Affordable housing" pricing = between £104K and £115K depending on circumstances...
You pay all the legal fees, have to use a limited range of mortgages and because the retail is above 125K you still had to pay stamp duty!

Dont take this as hostile, but you have completely the wrong idea about affordable housing...

PropertyPro

The big developers are renowned for playing hardball when it comes to price of new properties.

There is too much of a differential between the offer price and the surveyors valuation and on that basis, I feel you need to be prepared to walk away from this deal.

My advice is to state to Wimpey that you are prepared to move forward at £160,000 for 100% ownership and you are not going to negotiate further. Offer them an incentive saying you will be ready to move as soon as the legal work is complete, but in the meantime you have decided to resume your property search.

You may find they come back to say they will accept something like £175,000, but that is the time to stand your ground and repeat that your offer of £160,000 is not negotiable.

Don't call them apart from letting them know it's £160,000 or nothing. Leave the ball firmly in their court.

They may bite the bullet and decide to go with you or you will pick up a better and safer deal in the same neighbourhood. Please don't purchase a property which the surveyor puts a lower value on.

Mark

robin_banks

The last sentance says it all, your surveyor is qualified to give an opinion on the value of the property and you are not (no offence).

So the question is why on earth are you still interested in this property?, I also note you do not have a deposit, tbh you're bonkers for even considering buying a place without a deposit at the moment.