Homebuy scheme property buyers, did you negotiate with the housing association?

jinglebell

I have been very interested in the property under NEWBUILD HOMEBUY. All I need to ask is :

Can I negotiate the price with the housing association people? Or do I have to pay whatever the asking price is?

AMILLIONDOLLARS

You could try!. But it will depend whether the valuation comes in lower than the asking price. In the middle of negotiations myself so can't say too much at the moment.

AMD

cattie

You can't normally negotiate prices on these schemes but if the valuation comes in under asking price then you have nothing to lose by trying.

Chris2685

All the ones I have seen have been waaay too over-priced, made affordable only by the fact that you can actually borrow the amount for the 40% (or whatever) equity, and don't need to be approved by a bank for the 60% rent...

icpstu

I would be interested to know this too, we are in the middle of trying to buy a Newbuild Homebuy however our mortgage Lender (Leeds) have valued the property at £15,000 less than what the Housing Association want for it. I don't think we are in a position to negotiate, the HA are giving us the impression that we were lucky to be first on the list for the house and we'd need to make up the difference ourselves.

AMILLIONDOLLARS

Chris2685 wrote: »

All the ones I have seen have been waaay too over-priced, made affordable only by the fact that you can actually borrow the amount for the 40% (or whatever) equity, and don't need to be approved by a bank for the 60% rent...

May not need to be approved for the Rent, but you certainly do need to be for the mortgage part, this will be a sticking point, as I know from experience. Valuation came in under asking price, at present in negotiations about this, we hope to know by the end of this week whether they will go with new valuation or not.

AMD

icpstu

AMILLIONDOLLARS wrote: »

May may not need to be approved for the Rent, but you certainly do need to be for the mortgage part, this will be a sticking point, as I know from experience. Valuation came in under asking price, at present in negotiations about this, we hope to know by the end of this week whether they will go with new valuation or not.

AMD

Sounds like an identical position to us,I hope it goes ok for you. I have been told by Leeds to find properties in the area that are similar and sold in past 6 months for around the same price as what we need to get the house, also trying to get the valuation from Association to see if Bank will accept this.

AMILLIONDOLLARS

icpstu wrote: »

I would be interested to know this too, we are in the middle of trying to buy a Newbuild Homebuy however our mortgage Lender (Leeds) have valued the property at £15,000 less than what the Housing Association want for it. I don't think we are in a position to negotiate, the HA are giving us the impression that we were lucky to be first on the list for the house and we'd need to make up the difference ourselves.

The Leeds did this to us too!! See above. The remit of a HA is to provide affordable housing. If you start off with negative equity, what's the point in taking up their offer. Go back to them with the valuation, they will need to provide comparables properties that have completed with their asking price. The ball is back in their court.

AMD

AMILLIONDOLLARS

icpstu wrote: »

Sounds like an identical position to us,I hope it goes ok for you. I have been told by Leeds to find properties in the area that are similar and sold in past 6 months for around the same price as what we need to get the house, also trying to get the valuation from Association to see if Bank will accept this.

You shouldn't need to prove anything, it's down to the HA and their Surveyors.

AMD

BexInLondon

Chris2685 wrote: »

All the ones I have seen have been waaay too over-priced, made affordable only by the fact that you can actually borrow the amount for the 40% (or whatever) equity, and don't need to be approved by a bank for the 60% rent...

Er... you do need to be approved by the bank for the rent actually! We bought a 25% share recently, and had to prove both to the HA and to our lender (Nationwide) that we could afford the combination of mortgage repayment, rent and service charge and still have enough left to live. Others I know who have bought shares (all in London admittedly) have had to prove same.