Please help - advice urgently needed

Shadowplay_2

Hi, we really need some advice.

I’ll give a brief outline of the situation:

We have found a new build two bedroom flat (persimmon homes) for sale at £168,000. Persimmons have offered the following deal on the property:

They pay - the 5% deposit, stamp duty, solicitor’s fees, fitted carpets, all appliances and a free upgraded kitchen. We pay just a £250 deposit.

Now we are aware that they have over valued the property to recoup some of the above but we love the flat and felt the deal was right for us.

I visited an independent mortgage adviser and secured a mortgage in principal from Nationwide (6.23% fixed for 2 years) dependant on valuation survey.

Today I received a call from Nationwide (our IMA is currently on holiday) basically saying that their independent valuation came to just £150,000 – and so they will not be offering us a mortgage.

So what do we do?

I visited Persimmon homes and told them the situation and they said ‘oh you are the first buyer that this has happened too’ and gave us the details for their mortgage adviser (who has secured the mortgages for the other 12 flats which have already been sold).

I feel that we should ask for at least £5,000 off the purchase price or pull out (based on acquiring a similar fixed rate as Nationwide offered from their IMAer).

Any advice would be greatly appreciated

S.

James_Power

The only option you have is try and renegotiate with the seller and reach a compromise.

Did the lender say the property is worth £150,000 and we wont lend you the money, or they will only lend on £150,000.

If you’ve been told that your ok for the money but the property doesn’t value up, it might be worth you trying to get the money though another MA and another lender, it might cost you a few quid, the only other option you have is to find the missing £18,000 out of your own pocket. – I highly recommend that you don’t get an unsecured loan to make up the difference

Mr_helpful

They are probably taking the goodies as a discount and then lending in relation to the discounted price. you want someone that accepts gifted deposits or in this case a buildres deposit

wymondham

You have to ask yourself if you want to pay £18,000 more than it's worth to have the 'freebies' and the builders cut. Only you can decide, but I'd doubt the builder will negotiate. I'd personally be wary about using a mortgage advisor recommended by the builder - find one for yourself if you can.

Also look further ahead - how long do you intend to stay there as you'll probably initially make a loss if you will sell in the short term on this sort of deal...

poppy10_2

Whatever you do, don't use the mortgage advisor reccommended by the builder - talk about a conflict of interest!

The proeprty is overvalues, stand your ground and get a much bigger discount or threaten to walk away. The builder may lie and say you are the only person this has happened to, or that there are other people who are interested in the same property - don't believe them.

Jonbvn

With all the goodies they seem to be offering, I bet you think it is almost too good to be true. Let you into a secret. It is!

Basically, what they have offered as extras, is well below (the price-the correct valuation-their reasonable profit).

Builders do not offer such deals when they can sell property easily. It probably seems attractive today, but in a year or two you would regret buying this flat. AVOID!