barratt dream start - new build

apattie

Hi Nick,

We are in the process of completing out dream start purchase. We tried from all angles but they would not budge on the price through a dream start package.

However, that did not stop us from going ahead with it. Yes, there are a few cons but we have come away with a lovely home that we would not be able to afford now and as we want to stay for 5 to 10 years it has been a really good deal for us. Just some points that may clear up other comments on this thread.

The 25% you will owe Barratts does not include any improvements you make to the house. So when you value the house at the time you want to pay Barratts back they will only take 25% of the market value of the original build. Note they take the average between their independant evaluation and yours.

Yes, if the house price goes up you owe them more but if there is a dip or crash in the market and the value goes down you still pay them the 25% of the market value when valued at that time. So you could end up paying them less than you originally owed if your lucky. I double checked this and it does say it in their documentation and brochure.

There are many pros and cons but in OUR situation we think we have made the best decision for us and our new family.

We now have a brand spanking new 3 bedroom home instead of a 2 bed that we would only have for 2 years before we would have to move.

Good luck to you

Andrew

ceejay2222

We're also contemplating taking advantage of this Dream Start scheme. Although it may not be perfect, it is a big help in getting onto the property ladder. In our area the prices are stupidly high (£193,000 for one of these Barratt 2 bed apartments :shocked:) . We obviously couldn't afford anything close to this, but with the dream start, it brings the price down (initially) to about £150,00, which is a lot more realistic.
It is really frustrating as around here there honestly isn't much for under 150k. And with the white goods, 1k to legal fees, carpet, and plus very importantly for us being able to move in within 4weeks.

pinkshoes

If a company offers you any sort of incentive to buy, it basically means they're having trouble selling, and the property is way over priced!!

Barratts and many other large "building" companies should be avoided like the plague, as they often result in poorly finished, over priced properties.

Not to mention, if you buy on a large new build estate (apartments and/or houses), 1/3 of the properties are sold to Housing Associations, which means you could potentially end up with some undesirable neighbours. I speak from experience here, although thankfully I was only renting...

If you must buy a new build, buy from a small local developer, in an area where there aren't 100s of other similar apartments/houses.

I own a 2 bed newbuild, but there's only 15 apartments, they're all different and unique, and the rest of the street is mostly 4 bed detached/semis in a quiet residential area. Ideally we would have preferred a house, but for the same money we could only afford 1 bedroom in a far less desirable area!!

I would recommend NEVER buying in a large newbuild development. If you do, at least check how many and which ones are going to be Housing Association owned, and negotiate a substantial discount!!

If banks and lenders will only give a 75% mortgage on these places, then take it as a sign!!

PasturesNew

nickb_2581 wrote: »

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.

Builders used this in the last housing crash (88-96) and it was a nightmare for those that bought them. Quite often, when they came to buy the 2nd half they couldn't afford it; couldn't raise a mortgage for it.

(using current day figures) ... in a lot of instances, say, property cost £100,000. Buy £75,000 now and buy £25,000 in the future. Then the house value dropped to £70,000 and they couldn't raise another mortgage which would take them further into negative equity.

Don't do it.

dweeby

We bought a newbuild from Barratts many years ago. It suited us at the time, as we got a lovely new house with no chain and it was in what appeared to be a nice estate.

Years later when we tried to sell, every house viewer commented about the small bedrooms and small gardens (vs older houses in a simillar price bracket). Part of the reason we wanted to move was because we'd outgrown the house, and that due to the size of the plot there was no room for extensions.

The show houses look nice, with all the lovely new (minature?) furniture. But once you've moved into these small places with their plaster-board "stud" walls and lack of storage space, you start to see how small they really are. And you start to reallise the build quality isn't brilliant. Then when you try to sell them, there's nothing you can do about the small rooms and plot - except reduce your asking price.

Our experience is of a house and not an appartment, but many of the issues are the same.

(IMO!) buying new-build is a short term strategy, my advice would be to go for a longer term one. The house/appartment might not look as nice, or have the bells and whistles, or apparent financial incentives - but it'll be a much more sound investment (and it'll likely be bigger!).

cazdnh

Hi Nick
I was just wondering if you decided to go ahead with the dream start?? If so, how have you found the process?
I have a £500 reservation fee down on a dream start in York but am finding the whole process a little alarming.
They do not seem eager to help with providing me with plans and or dimensions and as there is no show home I really am purchasing blind.
I am a FTB with a nice dposit saved, the last thing I want to do is be disappointed with the aprtment as I dont get to set foot in it before I exchange which they are pushing me to do ASAP!
any advice for dream starters welcome, please build my confidence back up about my lovely new home.

sc1ema

hiya if you are talking about the 75/25 dream start scheme with barratt homes do not do it!!! My partner and I have have just split and we are now in negative equity as the original house price is higher which is the premium you pay for having such a good deal to start off with we now have a shortfall of about 8-10k

subjecttocontract

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.

If its leasehold then I don't see how you can avoid service charges and ground rent payments........it will be part of the standard lease terms for all of the properties and NON negotiable.

The offer of 25% interest free for 10 years seems to good to be true AND if something is to good to be true then it very often IS. If you think you've seen a bandwagon then your to late.

special_k83

I have the terms and conditions of the dream start here...you pay back 25% of the property value based on the average of 2 independent evaluations whether the property price rises or falls. Do your research on house prices in the area!! I did my research in my area and have found similar properties for similar prices. I think it is great because I wouldn't have been able to afford the 100% as a first time buyer but with the field of work I am in, I'm sure I will be able to afford it in 5 years time but I get to buy at 2008 prices.

I tried to negotiate, and only managed to get £1000 off, but it had already been reduced by almost 10% as it was the last plot.

When I get access to a scanner, I can scan and upload the terms of the dreamstart deal.

oindypoind

We've just paid our £500 deposit. The barretts scheme is very similar to that run by the councils for Key Workers, which is what we were originally looking at. But now I think this is a better deal, as with the council you have to pay rent on the percentage you don't own, you also have to find the soliciters fees and stamp duty.

I've been impressed with the scheme so far, and it seems like the only viable way to buy a 2 bedroom house near Brighton, with garage and Garden for £185k (75% share, of £247)

Has anyone had any experience in doing this scheme and being self-employed at the same time.