New build incentives

ftb2020

Hi, I wonder if someone can help clarify for us before we speak to someone higher at Persimmon Homes/ if we’re waisting our time.

so we reserved a New build property a month ago, the property was listed at £315,000 we asked if there was any wiggle room on this and was told we could purchase for £305,000 however the house would come without any carpets/ finishing touches. We totally understand this and managed to get accepted for a mortgage for £315,000 pending the valuation which is next week.

now the part I am really confused about, the sales advisor keeps stating that they are paying/ helping us with these incentives, but how are they? I totally get it if we got the mortgage for £305 and then they did the £10k upgrades. But the £10k is coming from our mortgage?

this has all arisen because there is a voucher on their website saying reserve today and choose a £3k finishing touches voucher - we asked if we could use this and were told that we have a better deal. Surely the £3k voucher is persimmon paying the £10k is coming from us so we should be entitled to this?

anyone else been in this situation or have I completely miss-understood?

penners324

I wouldn't touch Persimmon with a very long barge pole. A very large number of bad reports about them, awful build quality, etc. There's a Persimmon site just completing near me and you can already see the very shoddy build on the houses. They're only 12 months old.

KAP0365

ftb2020 said:

Hi, I wonder if someone can help clarify for us before we speak to someone higher at Persimmon Homes/ if we’re waisting our time.

so we reserved a New build property a month ago, the property was listed at £315,000 we asked if there was any wiggle room on this and was told we could purchase for £305,000 however the house would come without any carpets/ finishing touches. We totally understand this and managed to get accepted for a mortgage for £315,000 pending the valuation which is next week.

now the part I am really confused about, the sales advisor keeps stating that they are paying/ helping us with these incentives, but how are they? I totally get it if we got the mortgage for £305 and then they did the £10k upgrades. But the £10k is coming from our mortgage?

this has all arisen because there is a voucher on their website saying reserve today and choose a £3k finishing touches voucher - we asked if we could use this and were told that we have a better deal. Surely the £3k voucher is persimmon paying the £10k is coming from us so we should be entitled to this?

anyone else been in this situation or have I completely miss-understood?

We are also looking at new builds and are avoiding Persimmon due to build quality but also they seem to have a track record of not honouring incentives according to our research. We’ve found other developers who are paying all stamp duty plus a £15k deposit contribution or high street voucher. 

Suppose it depends where you’re buying and what - we were told their standard terraced or semi 2 and 3 beds sell really quickly so they don’t offer as much incentives compared to the bigger homes that don’t have as many plots. Not sure if that’s true or not though! 

ftb2020

We’re getting a 4 bed detached chedworth. I’ve seen good reviews for this build type and it’s the only chedworth in our development. We have been happy with what we have seen on the older part of they development which is nearly 2 years old now. It’s just this incentive bit that I am confused about.

KAP0365

ftb2020 said:

We’re getting a 4 bed detached chedworth. I’ve seen good reviews for this build type and it’s the only chedworth in our development. We have been happy with what we have seen on the older part of they development which is nearly 2 years old now. It’s just this incentive bit that I am confused about.

Are you buying a completed plot or are you starting it from scratch? 

ftb2020

Starting from scratch currently foundations in

bucksbloke

Ask them to itemise all of the costs of the upgrades out and how they make up 10k. 

KAP0365

ftb2020 said:

Starting from scratch currently foundations in

Ah then I sort of understand as assuming they will pay for whatever you want inside? Which usually costs a lot of money (although they are overpriced). Add up all the upgrades you want and see what it comes to. If it’s less than 10k you can flag it as being a bum deal. They should supply you with a brochure of costs? However depends how committed you are, maybe if you push they will give you the voucher as well. No harm in trying. 

ftb2020

They have already told me what the £10k includes, carpets finishing touches etc. It’s not this I am confused about. It’s the fact they are saying that they are paying for these incentives and therefore we aren’t entitled to the £3k voucher on their website. But they aren’t paying if we have got a mortgage which includes the £10k cost of incentives and therefore shouldn’t we be entitled to the £3k voucher ?

KAP0365

ftb2020 said:

They have already told me what the £10k includes, carpets finishing touches etc. It’s not this I am confused about. It’s the fact they are saying that they are paying for these incentives and therefore we aren’t entitled to the £3k voucher on their website. But they aren’t paying if we have got a mortgage which includes the £10k cost of incentives and therefore shouldn’t we be entitled to the £3k voucher ?

The price of the new build with no carpets - £305k - less of a mortgage
the price to buy it finished - £315k - the difference is because it is complete inside and people pay a lot extra, it’s not usually included in a sale. However I would counter that it’s only really an incentive if you’d have paid more for the upgrades if you had to install them yourselves. If it would have cost you more than £10k to do all the flooring etc yourself then yes, it’s an incentive and is on your mortgage because it is included in the price of the building. 

You should calculate how much it would cost you to do it yourself. If it’s less than £10k tell them and say you’ll reduce your offer unless they make it worth your while.

KAP0365

Be aware you’ll have to compare costs with like-for-like products to show a true comparison