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Taylor Wimpey Low Cost New Build

tessy_t
Posts: 91 Forumite

Hi,
I’m looking at a low cost new build in a popular area in the south of England. The house is marketed as low cost and I’m told this is a
developer scheme and not a government one. I can’t find much about this online and have been trying to work out what the catch is.
The house is sold at 20% below market value, to presumably help get people on the housing ladder, however I kept having some doubts that there must be something in it for the builder and I’m wondering whether anyone has any experience of this scheme with Taylor Wimpey?
Im told the low cost condition will be written in the deeds and the house will always be sold at 20% less than market value. The owner will always get 100% of what they put in.
By the way, I have read lots of threads regarding build quality and customer service, for this thread I am just asking about the low cost option:)
Thanks
I’m looking at a low cost new build in a popular area in the south of England. The house is marketed as low cost and I’m told this is a
developer scheme and not a government one. I can’t find much about this online and have been trying to work out what the catch is.
The house is sold at 20% below market value, to presumably help get people on the housing ladder, however I kept having some doubts that there must be something in it for the builder and I’m wondering whether anyone has any experience of this scheme with Taylor Wimpey?
Im told the low cost condition will be written in the deeds and the house will always be sold at 20% less than market value. The owner will always get 100% of what they put in.
By the way, I have read lots of threads regarding build quality and customer service, for this thread I am just asking about the low cost option:)
Thanks
0
Comments
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Hi,
I’m looking at a low cost new build in a popular area in the south of England. The house is marketed as low cost and I’m told this is a
developer scheme and not a government one. I can’t find much about this online and have been trying to work out what the catch is.
The house is sold at 20% below market value, to presumably help get people on the housing ladder, however I kept having some doubts that there must be something in it for the builder and I’m wondering whether anyone has any experience of this scheme with Taylor Wimpey?
Im told the low cost condition will be written in the deeds and the house will always be sold at 20% less than market value. The owner will always get 100% of what they put in.
By the way, I have read lots of threads regarding build quality and customer service, for this thread I am just asking about the low cost option:)
Thanks
Not necessarily true. If the market drops, you could lose.An answer isn't spam just because you don't like it......0 -
Odds on that a number of "low cost" properties such as this were a prerequisite for planning for the development as a whole.
So was there "something in it" for the developer? Absolutely. They wouldn't get to sell any properties at all without having to do some on this scheme.
And, as diggingdude says, you can still lose.
Basically, if the property would be £250k "full price", you're paying £200k.
If the full price would have gone up £50k, your value goes up £40k.
If the full price would have gone down £50k... your value also goes down £40k.0 -
If you would have to sell at 20% below market value, what if your area never rises, do you have to sell at a 20% loss?0
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I would only lose as much as anyone else on the property market, so yes if prices go down so would my property value. I would still own and me mortgaged for 100% of the house it would just be valued at 20% less than market value. I’m also thinking that possibly the house price which has been quoted is overinflated and that may be the catch. I’m just hoping someone will have some experience of this scheme with Taylor Wimpey?0
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diggingdude wrote: »Not necessarily true. If the market drops, you could lose.
Yes you’re right, what I meant was that I would own 100% but that the house would always sell for 20% less0 -
I’m looking at a low cost new build in a popular area in the south of England. The house is marketed as low cost and I’m told this is a
developer scheme and not a government one.
Do you mean this? : https://www.taylorwimpey.co.uk/buying-with-us/special-offers/starter-homes
That sounds very much like it's the government's "Starter Home Initiative".
See: https://england.shelter.org.uk/legal/home_ownership/sharedlow-cost_home_ownership/shared_and_low-cost_home_ownership_schemes/starter_home_initiative0 -
If you would have to sell at 20% below market value, what if your area never rises, do you have to sell at a 20% loss?
They don't pay full price and nor do future buyers.
If there was no market rise they would sell for what they paid.Officially in a clique of idiots0 -
RedFraggle wrote: »You've missed that they are buying at 80% of market value.
They don't pay full price and nor do future buyers.
If there was no market rise they would sell for what they paid.
If it really is the government's Starter Home Initiative, it doesn't work like that.
Here's one developer's description of it:- If you decide to sell the property within the first 3 years of the purchase date, you will need to repay the Local Authority the full amount of the discount.
- If you sell the property after 3 years but before 5 years, you will need to repay the Local Authority 50% of the discount.
- The property must be occupied by the qualified first time buyer a their sole home and cannot be rented out.
WHAT HAPPENS AFTER 5 YEARS?- Congratulations, the savings are now yours.
- On the fifth anniversary of the completion date, you can now sell the property and ‘yes’ the 20% saving will be yours plus any increase in value the property has gained during the 5 year period of ownership.
Link: https://www.pennyfarthinghomes.co.uk/starter-home-initiative/0
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