New Build purchase issue

Silver+apples

The problem is that nationwide will value the new house as if it is second hand. Say you move into a house that cost you 200K with the stamp duty thing you will only be able to sell it for 175k. They dont want you to move in then have to sell up and be up a creek.

The builders can wait for sombody to pay full price and getting a good discount and part ex is not easy.

I part exchanged with natwest who dont care if you end up a creek . :rolleyes:

FoxtonsRIP

Blueforever wrote: »

Also I've got a nasty feeling that I've been "had" by the developer.

indeed you have. The developer has over-valued by 20% rather than the bank having undervalued by 20%

Batchy

This is what i find amazing how we can have these discussions.

Something... (in this case the "house") is worth what someone else is willing to pay... (in this case the vendor - you was willing to pay the 220k discounted price).

The bank who lends the vendor the money for the security of the house thinks its worth 175k (100%) Vendor doesnt necessarily have the facility to borrow extra, nor make it good via extra deposit, therefore the house "isn't worth it!"

So to rephrase, the house is worth what the vendor has the ability to pay via raising finance via the bank aka mortgage, who has taken excessive risks on mortgages in the past and has itchy feet.

The Market is a mess... hope you get the money back, but be thankful you never got accepted, then lost your job then realised you still couldnt sell for 175k, and be stuck and in a financial mess. New builds at the mo seem dangerous to get involved in!