Bloor homes - Part exchange? Sell? How do we negotiate?

Moory60

Help please!!!

My Boyfriend and I are looking to secure a property on a new development by Bloor homes. We have a flat to sell for about 135k and the property we are looking to buy is 200k. We have about 20k equity but realistically need 15% deposit as we can't afford the mortgage repayments on a 10% deposit.

Bloor homes offer a 5% gifted deposit, they also offer part exchange, and several other incentives...

They wont accept a reservation on the property we want until we have sold our flat and we don't want to miss out - or go through the hassel of putting our property on the market and maybe still not getting the house we want.

Has anyone got experience of part exchanging their homes? Can you part x and negotiate extras such as 5% deposit / carpets / reduced price etc?

Thanks for your help!

DVardysShadow

Moory60 wrote: »

My Boyfriend and I are looking to secure a property on a new development by Bloor homes. We have a flat to sell for about 135k and the property we are looking to buy is 200k. We have about 20k equity but realistically need 15% deposit as we can't afford the mortgage repayments on a 10% deposit.

Bloor homes offer a 5% gifted deposit, they also offer part exchange, and several other incentives...

5% gifted will not help you. Just take it as an invitation to offer 5% less. If you can't afford the mortgage at 90% LTV, then you are not ready to buy even at 85% LTV. You need to factor in a margin for increased mortgage rates

Moory60

"5% gifted will not help you. Just take it as an invitation to offer 5% less. If you can't afford the mortgage at 90% LTV, then you are not ready to buy even at 85% LTV. You need to factor in a margin for increased mortgage rates"

We are looking at getting a fixed rate mortgage - the monthly payments are about £150pcm more with 90% ltv, which we could manage on but not afford to " live" as well! the 85% ltv would be affordable for us.

DVardysShadow

Moory60 wrote: »

"5% gifted will not help you. Just take it as an invitation to offer 5% less. If you can't afford the mortgage at 90% LTV, then you are not ready to buy even at 85% LTV. You need to factor in a margin for increased mortgage rates"

We are looking at getting a fixed rate mortgage - the monthly payments are about £150pcm more with 90% ltv, which we could manage on but not afford to " live" as well! the 85% ltv would be affordable for us.

Depends how long you can get a fix for. But gifted deposit will not get you to 85% LTV.

Milliewilly

I've recently looked into Part Ex and all the major house builders offer the same thing - its not a part - ex like part ex-ing your car.

They put your house up for sale (after you've given them a deposit for the new build) at a price THEY decide (you have to agree to go through with the 'part ex') and if your house hasn't sold in a number of weeks you can have your deposit back and a copy of your hip to use again.

So, in reality you could save on EA fees but will have to sell at a knockdown price and get nothing off the new build.

Raggie

All I would say is that at least one national builder does do a "full" part ex..

ie: your house + more money = new house

I think milliwilly has not found the right company yet.

My experiance is that both the price for your house and the price of the new build are both negotiable.

tb1105

we have had hassle whilst trying to bargain with bloors, buying a 2 bed from a plan for full asking price, they wont carpet AND pay stamp, they are being very stubborn. Since telling them we can only do it if they do that I have heard lots of stories about bloors houses being undervalued or not ready on time causing lots of threats to sue due to non completion... be careful!!

Milliewilly

Raggie wrote: »

All I would say is that at least one national builder does do a "full" part ex..

ie: your house + more money = new house

I think milliwilly has not found the right company yet.

My experiance is that both the price for your house and the price of the new build are both negotiable.

Which one is it?

terrierlady

Milliewilly wrote: »

I've recently looked into Part Ex and all the major house builders offer the same thing - its not a part - ex like part ex-ing your car.

They put your house up for sale (after you've given them a deposit for the new build) at a price THEY decide (you have to agree to go through with the 'part ex') and if your house hasn't sold in a number of weeks you can have your deposit back and a copy of your hip to use again.

So, in reality you could save on EA fees but will have to sell at a knockdown price and get nothing off the new build.

not so,
you are talking easy mover or market mover not part exchange, for part exchange you have to be moving up by at least 25/30% depends on builder and you stay in yours till the new house is ready, its normally freehold property we take not leasehold for part exchange value is normally 92% of valuation

Milliewilly

terrierlady wrote: »

not so,
you are talking easy mover or market mover not part exchange, for part exchange you have to be moving up by at least 25/30% depends on builder and you stay in yours till the new house is ready, its normally freehold property we take not leasehold for part exchange value is normally 92% of valuation

Which companies terms are those?


The developers I have looked at with the exception of Barratt / Bloor who aren't building anywhere near me anyway are advertising 'Part Exchange' when you look into the T&C's they are as I have already described. No mention of 'easy mover' or 'market mover' terminology.

http://www.charleschurch.com/xtrapages/partexchange-09.htm

David Wilson won't take houses over £250K

PJackson_2

I've never part ex-d but my Mum and Stepdad did several years ago - have you actually got a valuation from Bloor for your flat? It will certainly not be taken off your hands a EA market value - probably around 90% of the valuation. This could mean you have even less deposit. FWIW, my Mum didn't do express mover - as someone else mentioned here - the builder did actually buy the house from Mum as in the case you are hoping for - the builder was Barratts but they are a nightmare and wouldn't touch them with a bargepole tbh. We've bought from Bellway in the past and while some of their workmanship was terrible, after some wrangling, on the whole everything was fine!

Also, have you factored in that most mortgage lenders are now valuing new builds (in partic) at less than the builder's selling price i.e. meaning you may not even be able to get a LTV of 85% on it. I'd be very careful if I were you, if you are looking that close to the edge on what you can actually afford then I think with the possibility of the above issues you may find, in actual fact you can't afford it all all

I don't mean to sound negative - hope you get there but this forum is full of people who put a deposit down on a new build to then find their lender won't give them the mortgage they actually need to buy it!! I'm not actually sure how you'd find that out though without engaging a lender's mortgage valuation??