Builders incentives - Northern Ireland

hardguy007

Hi all.

My boss is building 32 new dwellings of which 5 have been booked even though there not officially released. I’m buying one of said dwellings at £135k including £15k of extras. The other same house type has been booked at £149k with no extras. I’m getting this deal as there my boss and it’s kind of a “thank you” price for all my years of work and helping hands.

As I’ve a very good relationship with my boss he’s happy to give me a builders incentive as in say 5% deposit.

My question is if I put up 5% deposit and the developer 5% “builders incentive” does the lenders view this as 10% deposit? Assuming they do, is 5% builders incentive the max they can offer or could they give me say 15%?

Finally cash......Can I give the developer a cash deposit as in can I reach him a bundle of notes?

kingstreet

hardguy007 wrote: »

My question is if I put up 5% deposit and the developer 5% “builders incentive” does the lenders view this as 10% deposit?

Yes, but you will have limited lender options for a 90% mortgage on a newbuild and even fewer in NI.

Assuming they do, is 5% builders incentive the max they can offer or could they give me say 15%?

No. Lenders will deduct from the valuation any cash incentive over 5% of the purchase price

Finally cash......Can I give the developer a cash deposit as in can I reach him a bundle of notes?

No. You can pay a reservation fee in cash, your deposit will be paid to your solicitor as the purchase progresses.