Persimmon Home - Incentives Removed because of Devaluation

chauhja

Ive recently gone through the Homebuy Direct Scheme to purchase a property through persimmon homes. I am at the stage where the bank has sent in their surveyor, who has surveyed valued the property 10k less then the persimmon purchase price. Persimmon where going to through in carpets and vinyl for the whole house prior to the valuation, however, because of the surveyors devaluation, they are no longer giving us this incentive. Can I complain about this? They are saying they have no where in writing that this has been agreed. I am frustrated at this as I am a first time buyer and the more I get for my money now the less I will have to spend on the home. I would like to pro actively do something about this. Please advise!!!!!!!!!!!!!!!!!!!!

Thanks

VIGILANT22

Don't buy a new build.........

vickylane888

Hi,

We are just in the process of trying to purchase a property under Homebuy Direct, and the property was valued by Natwest last week at £45k below the asking price, which unsurprisingly the developer is unwilling at this stage to accept (they are claiming they will not accept any price below the asking price).

Our financial advisor is pulling together a case to challenge the valuation, ie info on other plots sold and sales in the area etc, but we still think the asking price is too high and therefore the valuation will not be changed enough for the developer to accept.

Just like you, we should be in a fairly strong position however, because unless the developer is relying on selling the properties to all cash buyers, they will face the same problem for any mortgage. So my advice would be challenge the mortgage valuation, and try and see if anyone else on the development obtained valuations too (the developer should be able to help you with this, after all they want the sale). If the valuation stays at the same level, the developer has to make the call, sell the property to you at £10k less or to a cash buyer which may be hard to find.

Alternatively you could go to another lender but this will obviously mean you incur more costs in valuation fees. Which lender did you use? I have heard that Nationwide are notorious for undevaluing new builds as they value them as second hand porperties. But Natwest and Halifax are meant to be better. If you don't mind me asking, how much was your valuation fee? We paid £595 to Natwest which seems like a lot, and of course if we can't agree on the valuation, this money will be lost.

brit1234

vickylane888 wrote: »

Our financial advisor is pulling together a case to challenge the valuation, ie info on other plots sold and sales in the area etc, but we still think the asking price is too high and therefore the valuation will not be changed enough for the developer to accept.

Just like you, we should be in a fairly strong position however, because unless the developer is relying on selling the properties to all cash buyers, they will face the same problem for any mortgage. So my advice would be challenge the mortgage valuation, and try and see if anyone else on the development obtained valuations too (the developer should be able to help you with this, after all they want the sale).

Is your finacial advisor employed by the builder?

Sorry but this website is money saving expert not being ripped off expert. There has been a decade where builders have rigged house prices causing this economic disaster which we are facing now.

You are talking about challenging a bank which lent irresponsibly in the past and now has been forced to lend responsibly at tax payers money.

Stop blaming the valuation and look at yourself and the builder first.

Personally I can't wait for this election to come and this corrupt scheme go.

TastyTeeth

brit1234 wrote: »

Is your finacial advisor employed by the builder?

Sorry but this website is money saving expert not being ripped off expert. There has been a decade where builders have rigged house prices causing this economic disaster which we are facing now.

You are talking about challenging a bank which lent irresponsibly in the past and now has been forced to lend responsibly at tax payers money.

Stop blaming the valuation and look at yourself and the builder first.

Personally I can't wait for this election to come and this corrupt scheme go.

Do you mean the HomeBuy Direct scheme?

brit1234

Yes, its designed at keeping house prices high and is funded by the public. The money runs out this year, so lets hope its not renewed when the new government looks at the true national debt.

TastyTeeth

brit1234 wrote: »

Yes, its designed at keeping house prices high and is funded by the public. The money runs out this year, so lets hope its not renewed when the new government looks at the true national debt.

Funnily enough, I was at a Persimmon development yesterday and they've removed the HomeBuy Direct scheme against their available 4-bedroom houses until after the election.

The agent was trying to say the scheme had gone on hold (a Head Office decision) and would be re-instated again after the election. I didn't quite ring true to me. There were several plots that had the scheme against it - I wondered if they were holding out to sell the plots at full price?

wymondham

brit1234 wrote: »

Yes, its designed at keeping house prices high and is funded by the public. The money runs out this year, so lets hope its not renewed when the new government looks at the true national debt.

.. so tax payers have been funding the house price rises?? :mad:

vickylane888

brit1234 wrote: »

Is your finacial advisor employed by the builder?

Sorry but this website is money saving expert not being ripped off expert. There has been a decade where builders have rigged house prices causing this economic disaster which we are facing now.


You are talking about challenging a bank which lent irresponsibly in the past and now has been forced to lend responsibly at tax payers money.

Stop blaming the valuation and look at yourself and the builder first.

Personally I can't wait for this election to come and this corrupt scheme go.

I am well aware what this website is. I was merely explaining our experiences with the property we are trying to purchase and replying to the original post regarding a valuation.

I am talking about the possibility of challenging the bank because surveyors are not always correct. You are of course entitiled to your views, but every valuation case is different and they are not always correct, what would be helpful is if you understoood what you were challenging by asking about detail rather than making outlandish posts on these websites.

My original post was not meant to initiate policitcal views on the economy or on housing schemes but merely to comment on the original issue posted. If you are unhappy with the government investing in affordable housing, I suggest you discuss this in a local political forum.

VIGILANT22

After all your ranting above........be sensible DO NOT BUY A NEW BUILD

brit1234

TastyTeeth wrote: »

Funnily enough, I was at a Persimmon development yesterday and they've removed the HomeBuy Direct scheme against their available 4-bedroom houses until after the election.

The agent was trying to say the scheme had gone on hold (a Head Office decision) and would be re-instated again after the election. I didn't quite ring true to me. There were several plots that had the scheme against it - I wondered if they were holding out to sell the plots at full price?

The housing industry has been masivly campaigning for more funds in the wake of future government public cuts. Big cuts were already put in place before the election with ending of funding for similar schemes this year and next.

http://news.bbc.co.uk/1/hi/world/8598515.stm

.. so tax payers have been funding the house price rises?? :mad:

Yes, they do it in two ways.

First like in the US they have been buying sumb prime debt from the banks through there QE program saddling the tax payer with extra debt from their dodgy lending. This debt will increase taxes and cut public services.

Secondaly the schemes such as shared ownership and shared equity are funded by the tax payer. Its well known that house prices are still massively overvalued just look at IMF figures. Now we have returned to better lending people can't afford these new builds. The buy to let market has dried up and there are only limited cash buyers left. So the only way builders can really sell properties at the moment at their overvalued cost is through schemes such as home buy. End result tax payers are funding builders to overcharge. You would of noticed the price rises in recent months, these atribute to these schemes and foriegn buyers. Due to such low transactions in other areas of the market these schemes distort national figures and show house prices rising.

So in short we the tax payer are funding higher house prices for the developers benefit and not our own.