Barratt homes and part exchange?!

sarah1711

Hi I was wondering if anyone had any advice

We brought our current two bed house for 82,000 four years ago and with the property slump its worth about 75,000 which is what we owe on our mortgage. We now have three children and one is disabled so need to move for more space for him.

There is a new barratt development near us and they look lovely, the have a four bed house with everything we need, downstairs wc and dining room, its up for 146,000 How does a part exchange work?
Do we need a deposit? We don't have that sort of savings from everything we need with our little boy. We have no major debts and are upto date with all payments with everything.
Do mortgage companies take benefits such as tax credits, dla and carer's allowance for income?

Thanks for any advice x

paulashek

we have just part exchanged with barrett and moved into our new home in may. Our experience was fantastic from the moment we reseved till now. Any problem with the house the site manager has always been on had to sort. You will need a deposit to move along with all your lawyers fees. You also have to pay a £500 retention fee for your part exchanged property which is returned to you after they check the property hasnt been torn apart

sarah1711

How much was your deposit? Going to go down to the sale office tomorrow, just want to have as much info beforehand. x

littlesparkles

There is a new buy scheme around at the minute for new builds and I think you only need a 5% deposit for that. Other normal mortgages need 10% or more for new builds. I am about to buy a new build. I have done an easy move scheme with Taylor Wimpey rather than part ex as the part ex valuation was ridiculously low. Instead TW instructed an estate agent and we sold in around 4 weeks for a tiny bit less than we paid back in 2006. We think this is pretty good in the current market as another flat (same as ours and in our block) sold for 10k less than this in only January. TW are paying agent fees, stamp duty, removal costs, lawyer fee and 5% deposit. Barratt might offer something similar if part ex doesn't work out.

sarah1711

thanks for all your advice, going to see what they can offer me, hopefully we can get a good deal:D

cpoir

How's it going Sarah? We have been dealing with Barratts since the end of June now and it has been a complete disaster. We signed a part exchange deal and paid the £500 deal and days before the surveyor was due to come they pulled out on us and changed their mind claiming it was too big cash deal They've now offered us a far inferior deal potentially putting our monthly mortgage payments up by about £100. Now waiting for a new mortgage approval with a lesser deposit. So fed up with it all! We also have friends who are doing a part exchange with them and their completion date has changed 3 times now due to problems with the valuation on the new house :eek:

Don't think you qualify for the New Buy Scheme if you are doing a part exchange.

hobble_237

Look closely at the terms and conditions and ignore anything said under the part exchange section of their website. We were told by the sales person that they were giving us a verbal offer of £***** and we handed over a cheque for £500 deposit to "reserve" our property, so according to their website we were "safe and secure in the knowledge that both our sale and purchase are secure!

They sent two valuers to come and value our property and then two days later said they were refusing the part exchange. I called up the office in Edinburgh. I was told that the terms and conditions stated that they didn't have to give us an offer. When I said I had been given a verbal offer I was told that we weren't given an offer just an indictment of how much they would give us for their property. When I said that I had reserved the property I was told that we hadn't (so I don't know what the cheque was for).



She also stated that the terms and conditions state that they reserve the right to refuse a part exchange. I told her that it read to me as if that would happen when we first inquired and that this was very misleading.

Barrattsareajoke

I hope this helps someone to not make the mistake we did

We looked reserved a property and Barratt agreed to p/ex our property NOTE all paperwork stated sold as seen. Estates Agents valued our p/ex (£15000 below market rate as Barratt asked for a Fire Sale price, we have spoken to the agents you see) and wanted to market it straight way (we held them back ). We engaged a Solicitor recommended by Barratt,they completed all the contract paperwork before we had a mortgage or even a valuation of the Barratt property.
And then, Barratt sent a Surveyor to our property "just to check it wasnt falling down" and behold 3 days later pulled out of the deal - they just didnt like it! , we found out when the recommended solicitor EMAILED us !!!!
So because of this the Solicitor wants paying nearly £500 though I constantly told them to wait for the surveys! We have lost a mortgage arrangement fee of £500 and now 10days later have not had the reservation fee refunded on top of time spent and furniture brought.
So buyer beware, this is not a scheme to help you. if Barratt cant make a ton of money out of your house then forget it. Worse still since this event they have uncommunitive and frankly rude. We are about to take legal action, the silver lining that they dont know - is that my best friend is a Barrister in chambers !

musickitten1

Would be interested to know if anyone has had black ceramic floor tiles layed in their new barratts home and had any problems as I have had them chipped and repainted and they need doing again only a few months of living there really dont want them painted every few weeks not sure if Ive made the wrong decision paying extra for them, Any response appreciated. Thanks