FTB in London-New Build-What areas to look at?

Zero_Sum

rachel230 wrote: »

You have a reasonable deposit/combined salary.
Please think carefully about buying a new build if you can buy an alternative property.
Overpriced
Generally poorly built
Uncapped and unregulated service charges
Often councils do not adopt the estate, resulting in owners paying a fortune in estate fees (as well as full council tax)
Escalating ground rent
Permission fees
Potential problems if you want to sell

If you are in a position to buy freehold then your home won't be used as someone else's investment and you will have financial control.
Shared Ownership/Help to Buy has become a poisonous model of home ownership.

OP doesnt mention that property is leasehold.

I agree if theres any addional maint charges due to councils not adopting land, id avoid like plague, but theres a general feeling that this will be the next big misselling scandal like PPI.

Ive got a new build (6 year old) Its freehold & has no additional fees attached.
Not every newbuild is a rip off

Zero_Sum

mn92 wrote: »

Thank you all for your responses. Generally I see a theme from the majority of the responses that we should look at non new build properties without the help to buy scheme. We probably have to rethink what we are going to buy....and maybe wait a bit longer to have a larger deposit so that we can afford a 90% LTV mortgage on a non new build house.

If the newbuild is freehold & doesnt have any annual fees attatched, I wouldnt rule them out. There are advantages. As you said its less hassle in moving, also theyre generally a lot more energy efficient so cheaper gas bills

Cakeguts

mn92 wrote: »

Yeah true, I know if I am going with the new build, I will be getting an inflated price. It would just be so much easier to buy with my mentioned deposit (maybe I am wrong on this)

My work is near Moorgate/Bank Station, so I would need tube/train link to these stations. In terms of locations, I would be prefer somewhere with cafes, restaurants, shops.

What location are you referring to?

Forget the cafes, restaurants and shops. Buying is not like renting. Once you buy you are responsible for all repairs. You also have to have enough in savings to pay the mortgage if you become ill or lose your job and have no income. There are no benefits that pay mortgages. People think that buying is cheaper than renting but they only look at the actual mortgage repayments not the fact that they have to have substantial savings so that they don't risk repossession.



You will not have any spare money to spend in cafes or restaurants or shops you will need so save as much as possible. More saving really than that required for the deposit.


Have a look at places along the Metropolitan Line which goes to Moorgate.

Hillbilly1

What size of property are you looking for? 2 bed or more?

I’d echo the others, avoid HTB and new builds.

mn92

Hillbilly1 wrote: »

What size of property are you looking for? 2 bed or more?

I’d echo the others, avoid HTB and new builds.

We are looking for a 2 bed as a minimum.

Hillbilly1

Ok, so around Winchmorehill Hill N21 there’s 2 bed maisonettes for £400k. Overground to Moorgate and some nice cafes and bars by the green.

Definitely check out the South London and and the Eastern overground options too but there is stuff out there without having to do HTB with just a bit more saving and without breaking the bank with a huge mortgage.

mn92

Hillbilly1 wrote: »

Ok, so around Winchmorehill Hill N21 there’s 2 bed maisonettes for £400k. Overground to Moorgate and some nice cafes and bars by the green.

Definitely check out the South London and and the Eastern overground options too but there is stuff out there without having to do HTB with just a bit more saving and without breaking the bank with a huge mortgage.

Thank you, I will have a look. Yeah I understand that HTB properties are overpriced most of the time. It's just the convenience of being able to buy something relatively soon with only 5% deposit and with a low monthly payment for the first 5 years (assuming I go for a 5 year fixed 55% LTV mortgage). Then during those 5 years I will be saving to remortgage and pay off the equity loan before it starts building interest. That is the plan if I go for a new build.

Cakeguts

If you still want to buy new. Try Wembley Park. Try Wembley Park for nearly new as well.

steampowered

The HTB scheme has disadvantages. With the equity loan scheme you will need to think about how you are going to pay off the government's loan and there are fees involved with doing that.

As others have said, you might be better off buying a non-new build without using the HTB scheme.

You should look into the HTB ISA and Lifetime ISA. Saving into those could give your deposit a significant boost from the government without any of the strings you get with the HTB scheme. You really need to get a move on with opening one as I believe the HTB ISA must be opened by November and the Lifetime ISA must be open for a year to get the bonus.

Many lenders will not allow you to count your bonus as salary. Others will only allow you to count half of your average bonus over the past 2 years.

You could look at getting the trains into Moorgate station, or the DLR from South East London into Bank.

mn92

steampowered wrote: »

The HTB scheme has disadvantages. With the equity loan scheme you will need to think about how you are going to pay off the government's loan and there are fees involved with doing that.

As others have said, you might be better off buying a non-new build without using the HTB scheme.

You should look into the HTB ISA and Lifetime ISA. Saving into those could give your deposit a significant boost from the government without any of the strings you get with the HTB scheme. You really need to get a move on with opening one as I believe the HTB ISA must be opened by November and the Lifetime ISA must be open for a year to get the bonus.

Many lenders will not allow you to count your bonus as salary. Others will only allow you to count half of your average bonus over the past 2 years.

You could look at getting the trains into Moorgate station, or the DLR from South East London into Bank.

Thank you. We already have a HTB ISA each and we are putting £200 every month in it. We will have about £3000 each in HTB ISAs so we are looking for £1500 bonus from that (£750x2). In terms of bonus yes I know they will take probably the average or half of it.