Barratt Home Process

joee86

Hi,

My partner and I are looking to buy. We viewed a new build property on a Barratt Home development. I understand from reading other posts, that buying off plan is not very popular.

However, I am still keen to understand the process. I spoke to one of the sales advisors who advised that the last house of the type we like is now sold, however there are others on the plan which won't be built for about 12-18 months. He said that people have already started reserving these.

In that case, if we were (still havent decided) to go ahead with reserving one, how much has to be paid then? We would be using the help to buy scheme with a 5% deposit. I understand that the reservation fee is £500. However, would we have to apply for a mortgage now? I can't imagine any lenders would be too keen on keeping an offer open for 18 months. Or would it just require the 5% deposit and we approach the Help to Buy and mortgage lenders closer to the time?

Apologies if this is obvious but this would be our first house so we have no real idea about the process.

Thanks.

Lucky_Duck_2

Are they pushing for your exchange within 28 days of putting a reservation down?

joee86

I don't know. I spoke to the guy over the phone, and we are going in on Saturday to discuss further. That is why I wanted more info going in. As I wouldn't be too keen having to apply for a mortgage and get everything in order just to wait 18 months. Would be happy to pay the £500 and apply closer to the time when they can confirm a move in date.

mailmannz

I wouldn't bother mate. For less money you can get more house from an older build!

Plus that other house won't come with never ending service charges that only ever go up every year and won't have a leasehold garage so you won't have to deal with ground lease companies.

Honestly, do yourself a favour and avoid new builds like the plague!

Willis12376

We reserved a newbuild with bellway in September which is due to be ready in June.

We had to put a £500 reservation fee down in sept. and are due to exchange in December (6 months before completion).

We have a mortgage offer with Halifax which lasts until end of June. (Arranged through L&C)

I'd imagine in your case you'd not exchange for a year. So wouldn't need a mortgage in place until a month or so before.

One thing you'd need to consider is that mortgage rates are likely to rise between now and then and circumstances can change too and not all (if any) of the reservation fee will be refundable.

poppasmurf_bewdley

joee86 wrote: »

Hi,

My partner and I are looking to buy. We viewed a new build property on a Barratt Home development. I understand from reading other posts, that buying off plan is not very popular.

However, I am still keen to understand the process. I spoke to one of the sales advisors who advised that the last house of the type we like is now sold, however there are others on the plan which won't be built for about 12-18 months. He said that people have already started reserving these.

In that case, if we were (still havent decided) to go ahead with reserving one, how much has to be paid then? We would be using the help to buy scheme with a 5% deposit. I understand that the reservation fee is £500. However, would we have to apply for a mortgage now? I can't imagine any lenders would be too keen on keeping an offer open for 18 months. Or would it just require the 5% deposit and we approach the Help to Buy and mortgage lenders closer to the time?

Apologies if this is obvious but this would be our first house so we have no real idea about the process.

Thanks.

That's the oldest speel in the history of house selling.

And how much are these 'planned' new homes? Is the price guaranteed to be held until you complete?

BorisThomson

If anything about the property is particularly important to you, get it in writing. Barratt will tell you whatever you want to hear, do something completely different and deny all knowledge.

Time2go

All rservervation fee is refundable on htb if you don't proceed and max they can charge is £500

joee86

Thanks all for your replies. However, in regards to the garage being a leasehold, am I not right in believing that the government has put a stop to this?

To be honest, we need to use the HTB scheme, which can only be used on new builds, so we really don't have much choice in that regard.

I am going to write a lot of questions down and get them to reply to them in an email.

goodwithsaving

joee86 wrote: »

Thanks all for your replies. However, in regards to the garage being a leasehold, am I not right in believing that the government has put a stop to this?

To be honest, we need to use the HTB scheme, which can only be used on new builds, so we really don't have much choice in that regard.

I am going to write a lot of questions down and get them to reply to them in an email.

The government hasn't 'put a stop to it', it is more tightly regulated / due to be.

You need to consider whether the htb scheme is worth it. Only putting in 5% of your own money is a risk. What if you have no equity to pay off the loan when it starts accruing interest? Will you have enough of an income to remortgage and raise the funds to pay off the loan? Will you be able to save to pay off the loan? What if you find yourself in the position where you have to rent the property out?

I personally think help to buy has its place, but I think the government should have required 10%, not 5%. I wouldn't touch it.

If it's right for you do it. If you have questions over the above, don't.

A few friends have bought off plan and been fine, able to have interiors as they wish etc. I wouldn't do it now though, and certainly not with a minimal roperty equity which exposes me to such risk

joee86

If it isn't freehold then I won't touch it. As someone who hasn't bought before, the idea of forking out hundreds of thousands on something which isn't technically mine is not worth it. In terms on the deposit scheme, I don't have too much of an issue with it. My income is rather good, I have full confidence in paying off the loan within about 4 years, prior to the when interest is added. However, I understand the valuation may go up and therefore the loan.

But we have left this quite late, we are keen to settle down and start a family, which means I would rather get into a property sooner and pay back the loan rather than continue to save for a larger deposit.

One of the good things about waiting 18 months until I start paying a mortgage is that if I could delay paying the deposit for another 12 months, I could afford to pay 10% and borrow less off of the government.