barratt dream start - new build

BlueIsTheColour

Shameless bump, for post68.

My main query is Barratts wants 25% of the current value, equates to about £33k, however once mortgage O/S is paid off there wont be anything like that, and I reckon there will be a shortfall of about £20-£25k, just wondering if anyone then knows what happens to that shortfall?

Obviously I dont have that kind of money to give them, or even to repay significant sums so my only option would seem to be BR???

Have rung Barratts and they dont seem to have a clue, and am waiting for my old solicitor from the purchase to pull my file and see if they can find any answers, so just wondering if anyone has already been in this situation???

Thanks in advance! I just wish I had found this forum 4 years and not been swayed by the stupid sales person, how thick was I? No, please dont answer that!

tanyafelts

I gather from the 33k that the current value of this 2 bedroom property is around £133,000? If you don't mind me asking so I have a clearer idea of your situation how much did you purchase the property and when was that?

I found out a lot of information before going into this as Barratts staff seam to have mixed knowledge on it and like you some don't seem to know a lot of the important stuff. We are fully aware at how much our property cost to build as the solicitors have been thorough and really helpful and given us a lot of paperwork on the property and the price of the purchase comes to only 25% more than the cost of the built which is a fair amount. I understand that a lot of people did purchase some of the apartments in the same building last year and paid almost twice as much which is not good if they need to sell this year or in the next couple like yourselves, this is why we have decided to try jumping on the property ladder now whilst the prices are in our reach.

I feel that I am aware of what we are letting ourselves into with the scheme and if approved of a mortgage we plan to move out before the 10 yrs and have chose the property based on location, plot in the building and size so it has a good chance of being sold when we do. We see purchasing this property as a good way to get on the property ladder, build up some equity and move on after 5 years to purchase a more family suited home.

BlueIsTheColour

Yeah you're right, current value is about £135k, we bought for £162k 4 years ago, other apartments in our block were sold for £205k so we thought it was a good buy but we've outgrown the place, but are effectively trapped, either we sort out how to pay this shortfall if we can sell, or we have to stay until the market picks up and even then am not sure it would pick up to that degree...

Plus if we do split up, and its looking extremely likely, whoever leaves the place isnt going to want their name on the mortgage etc but the other one doesnt earn enough for the building society to agree to release them...

It may be the right thing for you, but my own experience of the scheme and of Barratts dodgy schemes (my sis almost bought a place from them with a gifted deposit but luckily couldnt get the valuation on the property so pulled out) would say be afraid, be very afraid...

Bob_the_Saver

nickb_2581 wrote: »

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

Not a dream it's a Nightmare

tanyafelts

Thanks for the replies.
I will take all this into consideration as actual customer experience is valuable knowledge. I will still be distraught and be left feeling there is no hope of getting onto the housing market ladder as house prices are rising again if we are turned down because we wont be able to re apply till the incorect information that is causing problems disappears in 3 months time.

I totally understand with the need to move out of somewhere small because where we live right not is really getting to me and my partner as we have outgrown this designer box and want to feel like we are moving on in the next stages of life.

I wish you all the best BluIsTheColour and hope you get it all sorted, and if you really want to try save your relationship I recommend trying seeing Relate as I have been told they are very good at sorting out relationship problems if its down to bad circumstantial stress and not incompatibility. x

GDB2222

tanyafelts wrote: »

I will still be distraught and be left feeling there is no hope of getting onto the housing market ladder as house prices are rising again if we are turned down

Please don't get stampeded into panic-buying. Houses are still desperately over-priced by historical standards.

Muhasib

tanyafelts: is your adviser NewHomes Mortgages based at Colchester ?

I just ask because if it is i'm forewarned as to what might happen........