FTB new build in London

KarlWalsh

Morning all,

We're interested in a new build by developer Berkely, and there's a chance we may take advantage of the Help to Buy equity loan scheme (if eligible). But I'm really unsure about the whole process around negotiating and actually applying for a mortgage so I have a few questions.

1. At what point do negotiations start? I realise this looks like a stupid question, but having not been through the process I just can't picture when/how/with who.
   
   
2. After reservation Berkely give 21 days to complete. What is completion in this case? Full payment of the property price? some sort of deposit? proof of a mortgage offer? None of the above?
   
   
3. Do Berkely need to know we might be taking advantage of the h2b equity loan scheme? Seems less in our favor if they do in-terms of negotiating the house price
   
   
4. Finally, I was considering offering about about 90% of the full £435k asking price. What's the margin for negotiating in the current London property market? The quality of the flat seems higher than a Barratt flat we viewed recently and will be viewing again today, but at the same time £435 seems very high for a 2-bed flat, only 820sqft and facing North-East. It is a 7th floor pent-house that should let in a-lot of light and it does have a decent sized balcony sweeping one side of the flat.

So many questions, brain to little to digest everything

kingstreet

1. When you visit the builder, they will explain the build timescale and the pricing and you take it from there with negotiations.

2. Builders usually give 28 days from reservation to exchange contracts, not to complete. Completion is the point the full purchase monies and the keys change hands and that can't happen until the build is finished.

3. Yes. As discussed in your thread on M&E.

4. Price negotiation depends on a number of things, such as the point in the development, the builder's half-year, or year end and it will have a basic price it cannot go below and will be able to offer incentives, regardless of HTB. However, if the market is buoyant in the area, it may not feel it has to do so...

I_have_spoken

Prices in London are going up 7% Far from getting a discount, you may be in a race to offer over the asking against peeps who are cash buyers.

KarlWalsh

kingstreet wrote: »

..

Awesome help again, thanks! :beer:

KarlWalsh

I_have_spoken wrote: »

Prices in London are going up 7% Far from getting a discount, you may be in a race to offer over the asking against peeps who are cash buyers.

That's certainly possible, some of the flats are still available 2.5 months since our last viewing so there may be some room for negotiating.

Since the plot we're interested in is a penthouse in London and of a seemingly good quality finish (judging by other flats in the the development) I'm not pinning all my hopes on such a discount, but still... 435 seems inflated.

Ironically h2b is probably pricing us out of the market :T

browneyedbazzi

I lived in a Berkeley flat and I have to say the design, build quality and the quality of the finish was far superior to any other new build I've lived in/seen. It had A rated appliances, brilliant insulation (we almost never needed the heating on and there certainly weren't any drafts), high quality kitchen units/worktops, good quality flooring and the communal areas of the building and grounds were beautiful and kept spotless. The price may seem a bit inflated, but comparing it to a Barratt place is like comparing apples and oranges.

KarlWalsh

browneyedbazzi wrote: »

I lived in a Berkeley flat and I have to say the design, build quality and the quality of the finish was far superior to any other new build I've lived in/seen. It had A rated appliances, brilliant insulation (we almost never needed the heating on and there certainly weren't any drafts), high quality kitchen units/worktops, good quality flooring and the communal areas of the building and grounds were beautiful and kept spotless. The price may seem a bit inflated, but comparing it to a Barratt place is like comparing apples and oranges.

Brilliant, it's hard to find experiences of someone already living in the development. I'm glad the quality lives up to appearances.

Agree about the apples/oranges, the Kidbrooke place was miles apart from the Lewisham Barratt home.

If you don't mind me asking... What were the extras beyond the asking price, i.e flooring etc? Any surprises after purchase that I should watch out for?

ethank

Berkeley do aim for the upmarket market.

browneyedbazzi

KarlWalsh wrote: »

Brilliant, it's hard to find experiences of someone already living in the development. I'm glad the quality lives up to appearances.

Agree about the apples/oranges, the Kidbrooke place was miles apart from the Lewisham Barratt home.

If you don't mind me asking... What were the extras beyond the asking price, i.e flooring etc? Any surprises after purchase that I should watch out for?

Sorry for the delayed reply - the flat I lived in was rented so I don't know what was standard and what was negotiated as 'extra' except that dishwashers were an extra (the flat had space/plumbing for the dishwasher but the appliance wasn't provided) and a shower in the main bathroom was extra as well (we didn't have one, the only shower was in the en-suite). From what the letting agent said I believe that having built in wardrobes in the second bedroom were also extra.

The development I lived in was billed as a flagship 'green' development so all the appliances were top rated (induction hob, electric fan oven, fridge/freezer, combi-boiler, extraction system) and the insulation/windows were excellent as well - I don't know if all of their developments are done to the same standard on the green side. We were so impressed with the rented flat that we seriously considered buying one of the town houses on the development until I was offered a job a couple of hours away.

One other thing - if you are security conscious - I've never seen locks/doors as good as the ones on the Berkeley flat. It felt like Fort Knox and I never worried about the place being broken in to.

verulamium

My partner owns a Berkerley (sold under the St James Homes label) flat in Deptford, Lewisham which she currently lets out. The build quality and material quality is very good - certainly better than many other big developer properties we have visited. The kitchen styling is not to my taste personally, but it everything else was good. The service charge is astronomical though and they can jump unexpectedly. This happened twice when they decided to build an on-site gym and introduce concierge services!

Most of the fittings were included. The floors weren't but she negotiated them to be included in the sale. She also knocked 6% off the price but that was in 2010 when the market was down.

I've read of many positive things about Kidbrooke 'Village' redevelopment. Many former tenants of the old Ferrier estate who took up on the offer to move back in were happy with the build quality.