barratt dream start - new build

nickb_2581

hope i can get some advice on the following situation:-

im looking at buying a 2 bed apartment new build on a barratt development reason being ive invested a large sum in a business venture recently but still want to get on the ladder. barratt offer a financial package called "dream start" whereby u only pay 75% of the asking price, the remaining 25% is payed by barratt and held for upto 10 years before it needs to be payed back. they also pay legal fees, stamp duty, kitchen appliances, carpets. theres also no deposit other than a £500 commitment fee.

ive been approved on the mortgage front provisionally so im ready to start negotiations but im not sure on wher emy angle should come from as they offer so much surely there isnt much room for manouvre in terms of price etc. has anyone got experience of this deal or negotiation in general to give me some points to hit the sales rep with??

there asking £124K for a 120yr lease hold but also wanting to charge me £67 p/month maintence fee and £18 p/month ground rent both of which id be looking to waiver.

many thanks

nick

BettiePage

Simple answer? Don't do it!

mystic_trev

nickb_2581 wrote: »

barratt offer a financial package called "dream start" whereby u only pay 75% of the asking price, the remaining 25% is payed by barratt and held for upto 10 years before it needs to be payed back.

I would suggest it's a dream start for Barratts! Newbuild Appartment - I'd want at least a 25% discount and NOT have to pay it back!

nickb_2581

yes i no new build/barratts etc etc is not ideal BUT i wouldnt be able to get a 2 bed apartment for just over 90K (what the 75% would be) in the area im looking at and im tight for deposit size cash but im not in a position where i can really wait so this seems the best option for my circumstances.

lynnexxxo

I'm interested on the terms Barratt will make you will pay back the other 25% within the next 10 years?

Maybe I'm missing something but surely a mortgage over 25 years for 90K plus having to pay another 32k to barrett over 10 years is going to work out more expensive than a straight 124k mortgage.

lynnexxxo

Also, if barratt reduced there preice by 4k then no stamp duty would be payable!

nickb_2581

lynnexxxo wrote: »

I'm interested on the terms Barratt will make you will pay back the other 25% within the next 10 years?

Maybe I'm missing something but surely a mortgage over 25 years for 90K plus having to pay another 32k to barrett over 10 years is going to work out more expensive than a straight 124k mortgage.

there is no interest payable on the 25% for the 10yrs. its repayable when u sell the home or within 10yrs in part or full.

if its payable when selling the house they take 25% of the property's sale price.

yes over the long term its more expensive to split the mortgage up as u say but im looking over the next 2 yrs rather than 10yrs.

RoxieW

Hi nick - you'll get a lot of people knocking new builds and barrett (gonna be worst hit by price drop etc) but if YOU like it and you think you can make your home there then dont be put off. Just think carefully as with any house.

We live in a new build at minute (5 yrs old) and we've never had any problems and love our house. We're also planning to move to a new build. I like them, they're all shiny and new - so sue me! Its down to personal preference at the end of the day and what you want to live in.

When I showed my friend the house we want to buy she turned up her nose and said 'oh, i'm not a fan of new builds - they have no character'. I had to bite my tongue from saying - so you would n't swap your crumbling 2 bed terrace that you're having to completely gut to get livable for a brand new 4 bed, 4 bath house. Obv I didn't cos thats not being a nice friend but she didn't hesitate to pass judgement on my choice.

Anyway, to answer your question - if you want to negotiate then go for it. Whats the worst that can happen? I think you're in a good position, buying at the moment with everything ready to go. If for some reason the cant/wont negotiate then you'll have to decide whether you think its worth what you are paying for it.

Good luck

BettiePage

Aren't mortgage lenders funny about white goods/carpets etc nowadays as they know that the REAL price of the house is actually less? IYSWIM?

m00m00

your location says Nottingham, is that's where you are looking to purchase an 'apartment'? if so I would run away.

look at the example of Player Street/Brook Court, sold for 139k as newbuilds fail to sell at auction a couple of years later for 70k.

there's a LOT of new build apartments in the nottingham area which have premium prices, in less than premium locations. I would guess this is the case in many cities

I would comfortably expect new build flats to drop by over 25% in the next 3 years in Nottingham, due to the bulls favourite theory, supply and demand. There's a massive glut of supply, and very little demand.

nickb_2581

yes theres a huge surplus in the city center but the development im looking at seems to be holding the prices even apartments, plus its in the catchment area for a highly regarded school and area.