De valuation in selling a new build?

Chattabob

Hi All,


I purchased a new build almost a year ago now with a 5% deposit with help to buy, I paid roughly 7-10K less than my neighbours did at the time although, the prices of the same new builds have come down a little closer to what I paid for mine now.


My Question is how much are you likely to lose on this new build? None of these properties are being sold second hand so its hard to gauge based on that. the first set of houses built on this site (different build, layout) are being sold for pretty much the same amount as they are being sold as new builds with no modifications extensions ect...as well as apartments. Is it better to rent until the house value possibly increases a little? is it even likely to increase and is it worth keeping hold of with the back of your mind worrying about financial stuff if someone decides to move out and it has a gap with me having to make the mortgage payments?




My girlfriend and I have decided this will not be our family home for when we decide to have a family and will move closer to her family, my girlfriend has no mortgage so it would be possible for her to get her own mortgage to take the pressure off HAVING to sell our current home which leaves us with options


I purchased the house with a 5% deposit and was told by the mortgage advisor that I pay this back either within 5 years interest free or when I sell (Which I understand)... If I sell I pay back the 5% on what the house sells for and not what I paid for it. I cannot seem to find the answer to this though. do I pay back 5% of the sale price and not the purchase price?


I tend to hugely overthink things so I have some other questions on top of this....




I have £15k savings... now... Do I pay a lump sum off my mortgage and hope I don't lose it within the re sale of the house and reduce interest payments? Hold it in a savings account and put it towards our next home? pay off a chunk of my help to buy?? Are there any other options you would throw into this?


The only dept. I now have is my mortgage so I also have extra money (wages) I can put towards things now I've paid off all the pointless things you are forced to pay out for when you buy a house as well as buying things for the house. Where should I put this extra money?


Thanks all in advance

ellie27

Not too sure what you are asking, but I bought brand new build end 2007 for £179k and now would be lucky to sell for £159k. Friend also bought brand new in 2007 for £125k, sold 2013 for £102. I dont know many folk in my area who have bought brand new and got back what they paid.

Thrugelmir

chattabob wrote: »

I have £15k savings... now... Do I pay a lump sum off my mortgage and hope I don't lose it within the re sale of the house and reduce interest payments? Hold it in a savings account and put it towards our next home? pay off a chunk of my help to buy?? Are there any other options you would throw into this?

Retain some money as an emergency fund. If the rate of interest on the mortgage is higher than you are earning on your savings. Then overpay the mortgage. Whatever happens you'll need to settle the mortgage when selling the property.

BitterAndTwisted

Why are you thinking of selling a new-build when you only purchased the property a year ago? Even if the place held its value you'd be down the survey, conveyancing and removal costs, with yet another lot to pay when you buy another place. That's one of the reasons people move so rarely

By the time you and your partner decide you're ready to start a family and need to move, it could be five years from now. Maybe longer.

ethank

ellie27 wrote: »

Not too sure what you are asking, but I bought brand new build end 2007 for £179k and now would be lucky to sell for £159k. Friend also bought brand new in 2007 for £125k, sold 2013 for £102. I dont know many folk in my area who have bought brand new and got back what they paid.

Don't think this was at all related to it being a new build. You bought at the peak of the market and 2008 - the credit crunch happened!

Leo2020

A link that you might find useful: http://www.helptobuy.org.uk/home

In regards to paying the loan. It is 5% of the current market value, if that is less than what you paid then the government get less back than they lent you however you can't sell it for less than the market value. So it it is worth £220k when you decide to sell but you accept an offer of £215k then HTB won't release the charge on the property.

kingstreet

Presumably, you put down a 5% deposit and had a 20% equity loan from the Government?

If that's the case, you will need to pay back the 20%, as the 5% deposit is your equity in your home, along with what you've paid off the mortgage and any profit from the growth of the value of the property, if any.

You can repay it voluntarily in upto two 10% chunks, or in one 20% chunk but repayment is based on the property value at the time of repayment, not what you paid at the outset.

Therefore you can repay more, or less, than what you originally borrowed in £.

The loan is interest free for five years, with payments of interest or "fees" starting in year six at 1.75% of the loan amount.

http://www.helptobuy.org.uk/docs/default-source/default-document-library/help-to-buy-equity-loan-buyers-guide.pdf?sfvrsn=4

Post-sales HTB Agent;-

http://www.myfirsthome.org.uk/