HomeBuy Direct

Jillifish

Hi

Has anyone used the HomeBuy direct scheme on a new build?

We are looking at a development in Leeds and we have the 5% deposit and and they have said 'legal fees'will be £750.

1. What other costs will be involved?

2. Is it possible to contest the asking price on the house?

Any help/advice much appreciated!

Thanks

will__2

Hi Jill,

I'm currently in the process of buying a house through the New Build HomeBuy scheme, which is pretty similar to HomeBuy Direct (there are so many similar, similarly-named schemes that I've given up keeping track).

The estimate for legal fees sounds about right. I've asked around a few firms in Kent (google Conveyancing Leeds for some closer to you) and had quotes between £700 and £1200, but most are around the £800 mark. It's difficult to fully understand where it all goes because every solicitor you ask has a different way of explaining it, with different words or phrases meaning (presumably) the same thing.

1. I still haven't got my head around all the associated costs completely, but here are some things you'll need to factor in:

- Stamp duty. Maybe. Some people tell me I don't have to pay it, others tell me I have to pay a percentage of it, in line with the percentage of the house I'm buying. We shall see.

- Survey. Three options: "Valuation", "Home buyer's report", "Full (structural) survey". For a new build, the consensus seems to be that there's little to be gained by getting anything more than a valuation, and certainly almost no point in a full survey.

- Mortgage lender's fee. Different for each lender, and for each mortgage product. Some allow you to add it onto the mortgage, others want it paid up front.

- Removal costs. Professional or the cost of hiring a van, and diesel, and pizzas for your mates who help you.

I'm allowing about £2,500 for all of the above.

2. When I started looking at properties 18 months ago, a lot of builders were open to negotiation but I don't think that's the case any more. With the limited pot of money set aside for HomeBuy, it tends to go pretty quickly and if you don't have it, somebody else probably will.

Finally, if you can increase your deposit, do so. Bigger deposit = lower interest rate. Read about LTV (Loan-To-Value ratio). The magic thresholds for lower interest rates seem to be 90% and 75% for most lenders.

Good luck!

Muhasib

Is it Granary Wharf?

Jillifish

no its a Bellway homes development in Gipton..still not sure about that area!!

Are they doing the same thing on Granary Wharf?