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HELP! New Build Home Incentives
mravjani
Posts: 1 Newbie
We have done a full reservation with Per Simmon Homes for a new build property which is at the roof stage and likely to be ready for possession by Jan-Feb 2017. We have negotiated with the builders for incentives in the region of £7500 plus stamp duty (£13000-this is our second home).
We are aware that the mortgage lenders need to know about these incentives (we are looking to go with HSBC and we want to disclose as well) We have heard that incentives upto 5% of total price of property are acceptable in normal situations to lenders. But ours slightly goes over like 7-8%.
We are trying to understand that how will the lenders take this into account?
1)will they deduct the value of the incentives from the total purchase price? In that case we might have to fork out more deposit??
2) or will the builder agree to reduce the purchase price by the amount of the incentive so we can still pay the deposit we want and go ahead with the purchase.
Can anyone with a similar situation or anyone who has the knowledge on this type of transaction help please?
We are aware that the mortgage lenders need to know about these incentives (we are looking to go with HSBC and we want to disclose as well) We have heard that incentives upto 5% of total price of property are acceptable in normal situations to lenders. But ours slightly goes over like 7-8%.
We are trying to understand that how will the lenders take this into account?
1)will they deduct the value of the incentives from the total purchase price? In that case we might have to fork out more deposit??
2) or will the builder agree to reduce the purchase price by the amount of the incentive so we can still pay the deposit we want and go ahead with the purchase.
Can anyone with a similar situation or anyone who has the knowledge on this type of transaction help please?
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