new house buy - a few questions

deefadog

1) We are hopefully moving to our second home, which is a new build. Is there anything different about buying a new home than a used one (so to speak) in relation to surveys, fees etc?

2)Also extra costs, ie stamp duty, solicitors fees etc comes in at around £7000, is there a way we can tag these on to our mortgage, or is it better to get a personal loan for these (as we can't save that much in the time).

3)Also we need to put down a deposit, which is £23,700 - can we get some sort of mortgage bridging loan for this?

Thanks

JennyW_2

I'm sure others will come along more qualified that me to answer but to question 2 - I'd assume the £7K fees will come out of your property equity?

question 3 - again the deposit would come out of your equity?

distilled

The only survey you'll need is a valuation for mortgage purposes, which is the cheapest. Negotiate a smaller deposit with the builder which shouldn't be a problem, but you will need to pay a deposit of some kind. Just make it an affordable amount so you don't have to borrow. Explain to the builder that the deposit would be from the equity in your current home. PM me if you get a negative response.
Good Luck

bunking_off

deefadog wrote:

1) We are hopefully moving to our second home, which is a new build. Is there anything different about buying a new home than a used one (so to speak) in relation to surveys, fees etc?

Very much depends on your lender. At worst, you'll only need a valuation survey (although there may be merit, after approx 23 months, in splashing out for a full survey to pick up any outstanding snags). At best, you may well find that your lender is happy with the builder's price list (Virgin One, my lender, didn't require a survey at all).

deefadog wrote:

2)Also extra costs, ie stamp duty, solicitors fees etc comes in at around £7000, is there a way we can tag these on to our mortgage, or is it better to get a personal loan for these (as we can't save that much in the time).

Assuming you haven't cut a deal with the builder to pay these, the norm is for them to be added to the mortgage. I suppose it is possible to get a personal loan - you'd pay a higher APR but I guess the trade-off is that a loan would be payable over a shorter period hence less paid overall. I've never come across anyone who didn't just add it to their mortgage.

deefadog wrote:

3)Also we need to put down a deposit, which is £23,700 - can we get some sort of mortgage bridging loan for this?

Ouch. How does the timing on exchange for the purchase of the new build compare with exchange on the sale of your existing property? You're in a no-win situation either way on this

....if they're aligned you've got a risk in that you're committed to the move date on your existing property but what if the new-build won't be ready on time (see this thread)
...if you're exchanging on the new build before you've exchanged on your own place, there's the risk that you might not have sold your place before completion on the new build. A common way around this is to organise a part-ex on your existing place, whereby if you don't sell your house on time, the builder takes it....problem is not usually at full market value. Obviously this isn't a go-er if you're downsizing.

Hey-ho. In any case, if the former, then the norm is that the deposit paid by your buyers ripples through to form your deposit to the builder. If the latter, then yes, you will have to find some other way of getting hold of £23k. This could be a bridging loan, could be an other unsecured loan, or I guess could simply be £23k added to your existing mortgage. If you've got the equity and a friendly lender, adding to your mortgage is probably cheapest.

deefadog

Thanks for the detailed reply! Yes it's a large deposit to find

That's good news on the extra fees to be added, this is what i was hoping for.

We are hoping on a part ex deal, not sure what we will get yet as the roof is not on and they will only get the ball rolling on this at this time, i guess a part ex is the very last thing they want to do, but if they are desperate they will offer this!

we will be getting alot of valuations our selves, so we are armed with a haggle, but for the sake of 5k, all the stress and hassle will be taken away, which will suit us as we have a young child!

I'll start a new thread on the part ex, i think

Thanks