Mtg offer rcv'd!| Prop Rsv'd | ukmonkey (a FTB)'s house buying help thread...

ukmonkey

Just got the KFI for the mortgage - repayments are £745 per month for the first 3 years, and then £800 per month after that.

eye-watering to say the least.

ukmonkey

Just spoken to my broker again, RBs do a 2yr tracker rate, which would bring it down to about £660 over 35 yrs. He's not sure whether they do 40yrs or not, but if they do, it'd be about £620-£630ish. There isn't the 1% cashback on this though, but the money that we'd save would give us the same as the cashback, even just after 1 year!

ukmonkey

I've just spoken to Lisa (the on-site sales rep) and asked if (forgetting about the £3k + £500 towards legal fees) they'd give us 10% cashback and pay all our legal fees.

She spoke with her director and has told me that they can't offer anymore than they already have as they "be giving them away" and they haven't had top give anymore to sell the other houses.

I told her that I'd have a word with my other half, but that we probably won't be able to go ahead.

I've just called her back and left a message asking if they'd go to £5k cashback plus £500.00 towards our legal fees.

I'll keep you posted.

I think "gutted" is the appropriate word here!

ukmonkey

And.....


£3000 cashback and £500 towards our fees is all they can offer.

Just need to speak to the g/f now but I think we'll still go for it. The mortgage repayments will be decent, so although we'll not be able to furnish all the house at once, we can do it bit by bit, which to me is more fun anyway!

Jorgan_2

If you were to go for the builders offer of 10% cashback, remember the contract price would be for the full amount so stamp duty & your mortgage etc would be payable on that figure.

ukmonkey

Jorgan, I don't understand??

The price of the house is £126,995

They are giving us £3,000 cashback and £500 towards our legal fees.

Are you saying that we won't see that money?

Jorgan_2

You will see the money, don't panic, the contract price that the property will be sold at will be the asking price, your solicitor will receive the money on completion & forward it to you. Builders do it this way so they are not seen to be lowering the value of their properties. Also they don't upset people who have already moved in & paid the asking price, then go onto see the rest of the development beig sold at reduced prices.

Unless the property is in a stamp duty exempt area, you need to try & negotiate the purchase price to £125k, or less, to avoid paying stamp duty.

ukmonkey

So Jorgan (I thought I'd already asked this, but obviously not!)

The mortgage company give the solicitor the money
He gives the developers £123,495 (i.e the asking price of £126,995 minus £3000 minus £500)
The solicitor takes his fees from the remainder
We get whatever is left.

Is that correct?

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also, when we put an offer in, what wording do we use?

"We agree to purchase XXXXXXXX (address), subject to contract and subject to XXXX (developers) gicing £XXXXX / XX% cashback + XXXXXXX (any other incentives)".

???????????

Is there anything we need to be careful about when we sign...?

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When do we instruct our solicitor?

The mortgage application will be going to the lender in the next week or so, we're going to pay the developers their £500 non-refundable reservation fee at the weekend, when do we need to get the solicitor to start doing his thing?


I appreciate your help on this!

Jorgan_2

Basically yes, thats how it happens. Check the small print on anything you sign, if in doubt about anything ask the sales girl to explain it to you, if still not happy/unsure about the answer, ask more questions.

You don't have to put anything in writing when you offer, the sales girl will have a form to fill in. Make sure the form has everything on it that you want.

I would instruct the solicitor on Monday morning if you sign on over the weekend. Take your solicitor's details with you when signing.

Whats the stamp duty situation?

ukmonkey

i have instructed the solicitor just now.

She is going to send me the relevent paperwork for us to complete and return next week.

The property is stamp duty exempt, as it is below £150k. This area is a regeneration area (presumably a "coalfields regeneration" area).

What details of the solicitors will the developers need? Just name of practice and their address?