property help please

martad

Hi there,

Would like some advice please. I have seen this flat that i really like, which is a new development, the development has been built just over 1 year now, and there are a few flats still left, they are giving incentives like paying 5% deposit for you, i also negotiated in them paying the stamp duty for me, which is great, as i am a first time buyer, and every little helps. I have already got a 95% mortgage arranged, so all is great, there are just a few issues, they said that they would need £1000 deposit non-refundable to take it off the market, which i am struggling to find, as i have got a lot of furniture to buy etc for the new flat, is there anything i can do to get around this? and is there anything else you think i could get?

Any help would be much appreciated.

phlash

Walk away.

martad

Thanks for you quick reply.

Do you think if i say this, they will come back to me with something different?

Thanks

Generali

I suspect that the point phlash is trying to make is that if you cant even come up with a thousand quid deposit then you can't afford to buy a flat right now.

Feel free to correct me phlash.

takoo

Hi Martad
Are you dealing with the owner of an agent? Is it really a deposit? In which case it comes off the price - I don't think it will in this case!

Takoo

stebiz

In effect you are getting a 100% mortgage. Try phoning up your lender and telling them that you are paying 'zip all' to move in. I've been a mortgage advisor, although my career changed direction, and many banks would run a mile as soon as they find out, especially now with the credit crunch.

I would also agree if you are struggling finding a grand stay clear for a bit. It looks like house prices are on the move - downwards. Hold fire for a bit!!

Stebiz

martad

Hi there,

Thanks for all your reply's so far.

Regarding the deposit, if i go ahead with the sale of the property, the £1,000 comes of the Final Price of the property. I have got a 95% mortgage of 110k, thats the price of the property, does that mean that they will withdraw 109k from my funds, which i am left with 1k in my bank?

Thanks

firesidemaid

if the property hasn't sold for the last year, then they will really want to sell it.

hold your nerve and there may be better offers to have - it would be interesting to see what the valuation will be on this property.

there will be NO stamp duty to pay if the property is less than 125K - so they are giving you nothing there. 5% deposit is approx £5000 - but i bet they already added that on in the first place.

do you have any deposit of your own? i would put in a cheekier offer. i have had friends get quite large percentages off new builds. they had to 'walk away' and wait several times before they got 20% off - and yours has been sitting around for a year.......

firesidemaid

p.s. I don't get the £1000 to take it off the market - they haven't managed to sell it in a year!

p.s.s if you know the postcode you can go onto right move and find out what the actual sale prices of the other properties are/were

martad

They just want budge on the £1000, they said this would take it off them market. They did say that it would come of the total price of the property, does that mean that they will withdraw 109k from my funds, which i am left with 1k in my bank? i have arranged a 95% mortgage of 110k

Thanks

dubsey

If you are paying the thousand pounds upfront out of your own pocket then I would have thought that, yes, you would be left with a thousand at the end.

Is this a small developer or one of the big ones? We have had experience of the big ones and they have always asked for a deposit-although both times it was £250 to secure the plot. We did place a deposit with Abbey Homes which we were buying off-plan but when the searches came back there was a dual carriageway in the pipeline right behind the property. We pulled out and they refunded our money, which was probably because they had a waiting list.

As has been said, if the property has been on the market for a year have a look and see what other similar properties are selling for. Ask if the deposit is negotiable, are they willing to halve it for instance?