Persimmon Homes

smnb08

just out of interest which development are you looking at?
i have been looking at lily gardens.
just being nosey lol!

Muhasib

mbga9pgf wrote: »

You are of course right, but they do generally tie in with the tax year. Go to companyhouse website for full details.

As to your negative equity, you are obviously a VI.

They DONT cover the loss. What would stop a HB purchaser selling the home to a mate for a drastically reduced price and splitting the difference if this was the case? They may lose the small porttion of thier loan, but I would suggest this is offset by the rediculous markup on newbuild property. If your negative equity is greater than the loan from the builder, guess what, you are in negative equity and still have to cough up.

Much better to have lower house prices instead of silly schemes that are propping up prices unneccessarily.

Why would I be a VI if I draw your attention to a fact you have omitted to persuade the OP otherwise?

As for company year ends tying in with the tax year end, I'm afraid you're incorrect - for example in the housebuilding sector Barratt, Bellway Berkeley, Persimmon and Redrow all have financial year ends which are different to the tax year end.


I agree that it would be better to have lower house prices but that doesn't mean that these government schemes can't help some people even if the accepted view is that they were intended primarily to bail out the developers and generate good publicity for the government.

mbga9pgf

You stated that the OP would be covered for any amount of Negative Equity. Which blatantly isnt the case. If persimmon know they are selling the property for X ammount over what the market rate is, why do they have to worry about the piddly little "loan" amount they have to fork out if prices fall significantly?

bexfizz

smnb08 wrote: »

just out of interest which development are you looking at?
i have been looking at lily gardens.
just being nosey lol!

We've been looking at the Varsity site. We were going to look at Lily Gardens though, decided it was a little too far from our workplaces though.

sgh1976

My experience of Persimmon Homes

Staff on the site - superb. Each and every sales rep (been 3 during the process so far) have always been helpful.
Staff at Offices in Wolverhampton - Utterly useless and trying to get answers from them is nigh on impossible and they don't keep their word with regards to keeping in touch or returning calls, I've always had to chase them.

Muhasib

mbga9pgf wrote: »

You stated that the OP would be covered for any amount of Negative Equity. Which blatantly isnt the case. If persimmon know they are selling the property for X ammount over what the market rate is, why do they have to worry about the piddly little "loan" amount they have to fork out if prices fall significantly?

If they are selling for x amount over the market rate then the mortgage lender's valuation surveyor would raise that in his report and recently they have been a lot more conservative in the basis of their valuations.

You mention 'significantly' - what is your % expectation for the fall in residential property? It seems to be a key issue for you.

mbga9pgf

muhasib wrote: »

If they are selling for x amount over the market rate then the mortgage lender's valuation surveyor would raise that in his report and recently they have been a lot more conservative in the basis of their valuations.

You mention 'significantly' - what is your % expectation for the fall in residential property? It seems to be a key issue for you.

They have been, hence why they havent been selling too many FTB properties without equity from a family member.
25-30% average fall from here over the next election term. London I reckon will get hit for around another 15%, T'up north and in areas of high public sector employment closer to 40%. Areas where tourism is popular (cotswolds) will rise.

Northern Ireland is already off 35%.

Muhasib

mbga9pgf wrote: »

25-30% average over the next election term. London will get hit for around another 15%, T'up north and in areas of high public sector employment closer to 40%.

Northern Ireland is already off 35%.

Interesting - is this nominal or inflation adjusted falls?

mbga9pgf

Nominal. Where do you expect to get the wage rises from over the next 5 years to cause persistent demand side inflation from? IF everyone is paying significantly more through VAT and increased commodity costs, where is the money coming from to service a mortgage?

smnb08

bexfizz wrote: »

We've been looking at the Varsity site. We were going to look at Lily Gardens though, decided it was a little too far from our workplaces though.

i live about half way between the two developments and ended up looking at lily gardens as they seem to be cheaper than varsity.