New build, 10th floor, 15% deposit. Help !

georgecostanza_2

kingstreet wrote: »

So, it's a newbuild but you're not buying from the builder?

How long has it been in current ownership?

Like most new builds around here they are all sold before the building is complete, in fact there is one building in Stratford that is all sold before it has come out of the ground yet .

And there is nobody living there yet, first flats not finished until end of march.

kingstreet

Ok. Does the builder have any sales executives in the building, or in a nearby site office?

If so, you could ask them about the availability of mortgages on the development.

georgecostanza_2

kingstreet wrote: »

Ok. Does the builder have any sales executives in the building, or in a nearby site office?

If so, you could ask them about the availability of mortgages on the development.

I was always under the impression that mortgages had to be made available to the original purchaser, and not subsequent buyers?

olly300

georgecostanza wrote: »

I was always under the impression that mortgages had to be made available to the original purchaser, and not subsequent buyers?

We are all offering suggestions to help you.

The more people you talk to who know about the actual block of flats the more likely you are to find out a provider who will lend to you.

I suggest instead of questioning everyone on here you start talking in person to people who actually live in the flats, are selling the flats or have built the flats.

Wh05apk

I think Woolwich might do this, subject to valuers comments, although like Kingstreet, I am confused, is the property built, or are you buying off-plan?

ACG

Its not that you cant get a mortgage, you just cant get a mortgage on that property.

Take a step back, when it comes to selling do you want the hassle of not being able to sell it?

egoode

Out of curiosity and kind of related to the OP's question why won't lenders provide mortgages to high rise flats? I would have thought with the amount of housing required in london and lack of land, high rise flats are going to become more and more common. I'm from Australia originally and know we don't have this issue at all with mortgages, is it just a UK thing?

georgecostanza_2

olly300 wrote: »

We are all offering suggestions to help you.

The more people you talk to who know about the actual block of flats the more likely you are to find out a provider who will lend to you.

I suggest instead of questioning everyone on here you start talking in person to people who actually live in the flats, are selling the flats or have built the flats.

Dont quite get this attitude ? As I have already stated there is nobody living there yet to go and ask , sadly.

I am buying off someone who I would guess is a speculator . There are at least 4 flats in the building which are up for sale on the second hand market, so to speak

Leon_W

I'm with ACG on this. As you are now aware, getting a mortgage for this property is not as straightforward as you thought and this is never going to change, not in the forseeable anyway. Say you did manage to find a mortgage and a few years down the line wanted to sell and move on ? Who, realistically, would want to buy it ?

Add in the fact it might be owned by a "speculator" who may not have owned it 6 months, and it's a new build, and it's on the 10th floor, and you have a small deposit then it all adds up to a great big NO in my book.

Just as an aside. Mortgage lenders also tend to have exposure limits, say 30% of a development. If a lender is up to their maximum, this could potentially leave a property cash buyers only, even if it is otherwise mortgageable.

georgecostanza_2

Leon_W wrote: »

I'm with ACG on this. As you are now aware, getting a mortgage for this property is not as straightforward as you thought and this is never going to change, not in the forseeable anyway. Say you did manage to find a mortgage and a few years down the line wanted to sell and move on ? Who, realistically, would want to buy it ?

Add in the fact it might be owned by a "speculator" who may not have owned it 6 months, and it's a new build, and it's on the 10th floor, and you have a small deposit then it all adds up to a great big NO in my book.

Just as an aside. Mortgage lenders also tend to have exposure limits, say 30% of a development. If a lender is up to their maximum, this could potentially leave a property cash buyers only, even if it is otherwise mortgageable.

Given how quickly these developments sell, I would say it could sell again quickly . Otherwise how could anyone buy a place in canary wharf ? My current place is 9 floors up in an 18 storey steel and glass building. However RBS are no longer interested in such properties.

Think we have to cash in some savings and go to 20 % sadly.