First time buyer advice

zoosh

Evening all, Ive been looking into getting my first property the past couple of months and ive just come across a nice flat.

A couple of things...
its a new build property
1 bed flat is listed at 105k, estate agent said they might take offers.
the estate agent has said that as a new build, they all require a 20% deposit?
iam currently looking at a 40 year mortgage. will probably stay in the flat for 3-4 years.
ive got a deposit of 11k myself which should rise to 20k with the help of my parents
its leasehold for 125years
service/maintenance charge is around £50-£60 each month

The big downside at the mo is the 20%, does anyone know if all new builds require a 20% deposit?

Appreciate any advice on the subject

Dom3663

Similar issue...(well the same issue actually lol)

http://forums.moneysavingexpert.com/showthread.html?t=1762013

_Andy_

Couple of things to bear in mind
1) With a 40 year mortgage you'll hardly be paying any of the balance off during those first couple of years
2) The value of a new build flat will reduce as soon as you buy it

zoosh

_Andy_ wrote: »

Couple of things to bear in mind
1) With a 40 year mortgage you'll hardly be paying any of the balance off during those first couple of years
2) The value of a new build flat will reduce as soon as you buy it

Yeah I understand your first point.

Could you explain why i will lose money on the flat as soon as I buy it?

_Andy_

Similar to buying a new car - it's value is that it's new - once you drive it off the forecourt, the amount you could get for it is less.
Newbuild flats have (generally) performed very badly. This is why lenders require a high deposit for them (which in itself should be a warning sign)

zoosh

Right ok, do all new builds require a 20% deposit?

getmore4less

zoosh wrote: »

Right ok, do all new builds require a 20% deposit?

This thread says 25%

http://forums.moneysavingexpert.com/showthread.html?t=2289287

VIGILANT22

in fact many new builds are valued at resale price........

zoosh

VIGILANT22 wrote: »

in fact many new builds are valued at resale price........

Sorry I don't quite follow? The deposit depends on what I sell the flat for when I move out?

zoosh

I can only afford a flat, so is there any dis-advantage to buying a new build over an older flat? From what ive read on here most seem to be against the new build flats.

VIGILANT22

zoosh wrote: »

Sorry I don't quite follow? The deposit depends on what I sell the flat for when I move out?

NO ...What the lender's surveyor values it at........