FTB questions

kkloon

Hi fellow MSE...

I am a FTB who intends to get on the property ladder this year. Have been looking at a few flats that are within my price range, which is approx 160 - 180k.

I have visited a Barratt development, New South Quarter in Croydon and are very interested in one of those flat. The asking price was about 180k and I have put in an offer of approx 164k. What do you guys think?

Do you guys think I should pay for someone to snag the properties throughout? I do think I will get my own solicitors rather than using theirs to prevent a "one sided" unfair contract exchange.

Is there any fellow MSE here who are NSQ Croydon's resident? Perhaps we could speak in private?

Thanks.

kkloon

The developer has now came back with an offer of 171k, but with a condition the following condition:

a) use their independent solicitor
b) use their independent mortgage advisor
c) legally complete in one month

I am not sure if there are any catch in this, anyone can advise please?

david29dpo

a. no. b. worth a try but watch for the heavy sell. c. fine but make a lower offer.

Leory

as a rule you shouldnt be using the developers/EA solicitors or mortgage advisor - not beneficial to you really.

still put in a lower price.

are you buying off plan or are they completed?

Eric1

a. no
b. no, but the choice may be limited anyway
c. what happens if you don't?

chris.lewis

a) I think your missing the fact that they have recommended an independent solicitors. This normally means they have good links with the developers solicitors for fast communication, and they also know that the developers expect to exchange within a month. Both me and my GF have used the "recommended" solicitors on our new build flats and both have been fine.

b) You don't have to use their mortgage advisor, he/she just needs to do a financial assessment on you to make sure you can afford the property, but again it does make it easier to use the one they recommend. Just make sure you tell him he is working for you not them, and not to share information with the developer without your permission.

c)I was told exactly the same when buying my new build, the legal completion within a month is fine a bit quick but fine if you have good solicitors.

kaych

a) we just bought a new build flat from Barratts too and have used their recommended solicitor (they contributed £500 to the solicitor cost if we use them). We have no problem with the solicitors, i don't think they were working for the benefit of the barratts. We valued the flat to be lower than the sale price. We emailed our solicitor and they passed the message on, and Barratts reduced the price etc. I didn't feel they were working for Barratts at all. They were just doing their job normally I think...

b) not sure about this, as didn't really use a mortgage advisor at the end, just went straight to the bank.

c) a month to complete is quite short isn't it? with us it took the bank some time to value the flat and we had to go backward and forward with the price as we were trying to get more of the sale price off after the valuation etc.

DVardysShadow

kkloon wrote: »

The developer has now came back with an offer of 171k, but with a condition the following condition:

a) use their independent solicitor
b) use their independent mortgage advisor
c) legally complete in one month

I am not sure if there are any catch in this, anyone can advise please?

Would not do a) or b) - although some people have good experiences, there is too much conflict of interest. No doubt lots of pressure will be applied, but in your position, it would be a deal breaker for me. It is not shared ownership is it? If it is, then you would be mad to use the developers solicitor. And does the flat actually exist at this moment?

I think there may be a deal to be struck at 171 without their requirements. But do have a think about the whole problem of negative equity. Do you have a decent deposit [15% absolute min]? You call it the 'property ladder' but some seem to land on a 'property snake'

kkloon

I am trying to buy through Barratt Head Start scheme which means they lend me 15% of the property price, interest free for 10 years. I would not really call it "shared ownership" as you do not pay rent on it. It is more to Homebuy Direct kind of scheme.

I think I should use my own independent solicitors, mortgage advisor wise...might use theirs.

It is a completed flat, which I even went into for a viewing, which is why they want to legally complete in a month.

Castleman

Property ladder or property snake? Only time will tell!

Doesn't really matter as long as you're looking for somewhere to live, not somewhere to turn a quick profit.

kkloon

Guys,

I did a quick calculation of my possible spending for the home if I take it up (mortgage, council tax and service charge), it will take up about 43.43% of my nett take home salary. Any comments on this? What is your % of nett salary spent for those above only?