FTB dilemma- Cattle Market!

LWils

Myself and my husband are first time buyers, we have been renting for 5 years and have a pretty low deposit of £10,000. We have reserved a new build property paying £500 and agreeing a price of £163000, as the developer offered 5% deposit paid.

The house is at a premium compared to the same style house in other positions of the development, as it has a view of countryside/river. We were told by sales staff that the area behind would never be built on as it is a floodplain. After reserving the house my hubby checked planning, and found a local council plan detailing the area directly behind the house designated to be developed into a cattle market! :eek: This would really impact upon the view, and I think would make the house difficult to sell on in the future.

The plan has been in place for 10 years, and so far not acted upon but the council confirms that it is still active. There is currently a cattle market elsewhere in the town, which is earmarked for housing development, only if the cattle market is relocated to the land directly behind our house first! There is no time line for when this will happen, but it is only a matter of time.

We went back to the developer with the plans (which they denied previous knowledge of) and they are not willing to negotiate the price further. We are considering walking away.

As we have a low deposit, we would find it difficult to buy on open market outside of the new build developers offering 5% deposit. Although I have seen that some 95% mortgages are available.

My dilemma is do we
1) continue with the purchase, and just hope that the cattle market does not get built anytime soon.
2) pull out of the sale and carry on renting with the aim to save a bigger deposit so we can buy somewhere else.

amblondon

Put it another way: Do you want to risk £160k on hoping that the cattle market doesn't get built?

That's even if a mortgage company thinks the house is worth anywhere near that much once the valuer discovers the plans.

Tixy

I wouldn't want to live there.

Can you not find another property either from this builder or another that would help with deposit paid? If this same builder are there any other plots on the development you would consider? maybe he'd even let your £500 deposit be transferred to another of his plots or developments somewhere else?

If you can't find anything you like and that you can afford to buy now, then yes I'd continue to rent and try to save a bigger deposit.

DannyboyMidlands

Walk away. Even if the cattle market doesn't get built then something else could in future. It's a good thing that you found this out not a bad thing.

sugarwalsh

I would walk away - there was aguy onhere just yesterday who had been told there would never be a development on the field behind his house. Lo and behold there are now plans for 300! He was now having real trouble selling his property.

Carry on saving and get somewhere with a larger deposit. Better stuck paying rent than with a house you have lost money on and can't sell.

Megan

LWils

Thanks. I did think about going for one of the other houses on the development, but they felt kind of claustrophobic compared to this one, as they had houses at the end of the garden rather than open space.
I think that the best idea is to walk away, would mean losing half of £500 reservation fee, but yes if we went ahead could lose a lot more on value of the house. And I really can't think of much worse things than a cattle market to be built at the end of the garden!

Richard_Webster

You have checked that your chosen mortgage lender has no problems with the builder "paying" the deposit?

Very often they reduce the value by the amount of this incentive and work out their percentage lending on the reduced figure. So this kind scheme only works if your lender will accept it - and they shouldn't - builders need to learn not to be so greedy and price properties properly.

bodmil

I'd be off like a shot. If a new development has been built (yours) and a cattle market has permission, it seems entirely possibly that another construction could be permitted (another development). Flood plain or not, a flood wall won't dent their profit much. I'd rather rent forever than buy the wrong house.

vickyj

Cattle markets are crazily noisy places due to the mass of HGV traffic and the errr well ... cows ! not to mention really smelly. I would walk now and take the time to save a bit more. £500 is very little compared to what the house will loose if you have a muddy smelly cattle market on your doorstep.

LWils

Richard- Yes we sought an independent financial advisor who confirmed that only one mortgage provider does this sort of mortgage- Santander- and our mortgage has been approved.

twodogsandacat

Only you can make the decision about whether this is the right mooooove for you.