Buying a new build

wslawson

Hi, I would be grateful if somebody could give me some advice regarding buying new builds. I have been to a new buld development and am interested in purchasing an apartment, the only problem is the apartments will not be built until July or August. The developer is offering pay £99 move in deposit scheme for first time buyers. If I go ahead and reserve a plot do i need to get in place just now a mortgage or can i wait till near the time the apartment will be ready, especially with interest rates possibly falling? Also do you need to get a valuation done on a new build flat? Finally and sorry for all the questions after 14 days of paying the deposit, contracts have to be swapped, does the mortgage need to be in place for then or as I asked ealier can it be near the move in time?

I thnak you in advance for your help and advice on the questions above.

Many Thanks
William

Doozergirl

Do not buy a new build apartment please.

And I don't recommend ever buying somewhere that isn't built to be honest - you don't know what you'll be looking out on or anything. Like someone jsut said, you can't research the 'feeling' you get when you walk in somewhere.

But if you do, you need a mortgage now.

dmg24

Doozergirl wrote: »

Do not buy a new build apartment please.

ANd I don't recommend ever buying somewhere that isn't built to be honest - you don't know what you'll be looking out on or anything.

But if you do, you need a mortgage now.

Perhaps you should ask more questions before telling someone what to do?

wslawson,

Welcome to MSE.

Is the apartment one of numerous identical ones, or is it quite unique and individual?

The reason I ask is that if there are many apartments in your area that are alike, it is quite likely that in the short to medium term, it will lose value.

If you have researched your local market, and are aware of the possibilities of what may happen to the value of your property, then good luck with your new home x

Doozergirl

dmg24 wrote: »

Perhaps you should ask more questions before telling someone what to do?

Are you telling me what to do?

TroysMum

If you work out where the apartment is going to be on a site plan you will have a good idea of your outlook. They usually have show apartments of the same flat type you buy so u will get a feel for the size etc. You dont get the got to have this feel though, i do agree.
The way the housing market is, the housebuilders sales people have a lot of leeway on price so haggle. Dont be shy, they can only say no. But definatly get some money knocked off, in my area, thousands have been knocked off to get them moving. If they wont budge, get them to carpet it for you, and upgrade appliances etc.

wslawson

The flat is in the outskirts of Glasgow and is well priced for Scotland and is now starting to have large price rises, though it is an upcomming area there are very few new build flats at the moment. From what I could gather from the selling agent Bellway I wouldnt need amortgage in place until near the completion date, she did also state that a mortgage promise only lasts 3 months and they are estimating 6 months for the build? Would anybody know if this is correct?

classybird_2

Hi,
We bought/are in the process of buying a Bellway property off-plan - basically we reserved the plot back in June last year (we had to pay a reservation fee of £1,000) and we then had 1 month or thereabouts to organise a "mortgage offer" & 10% deposit. (At the time we had a mortgage offer for a fixed 5 year mortgage.)
Last week we got our letter to say that the house was now ready & you basically get 10 days notice in which to get your finances in place (& not forgetting the snagging inspection) before completion. Obviously with the interest rates going down last month & potential further rate reductions we decided that we wanted a different mortgage & have now gone for a tracker mortgage with a completely different lender.

Hope this helps:D

wslawson

Hi and Thank you classybird, I do have another question reagrding your reply, after you paid your reservation fee did you swap contracts after 14 days and then afterwards arrange the mortgage?

Many thanks

William

epz_2

wslawson wrote: »

The flat is in the outskirts of Glasgow and is well priced for Scotland and is now starting to have large price rises, though it is an upcomming area there are very few new build flats at the moment. From what I could gather from the selling agent Bellway I wouldnt need amortgage in place until near the completion date, she did also state that a mortgage promise only lasts 3 months and they are estimating 6 months for the build? Would anybody know if this is correct?

what area of glasgow? most of the "up and comming" areas i know of are actually places where the demolished council houses and threw up new builds, the buildings are great but the knife wielding junkies living in the remaining council hovels aint.

Nitshill has new semi's for over 150k !!!!!!, i wouldnt walk down the streets there in daylight.

re the mortgage i would only see if could get one approved, odds are the boe will get lent on to drop rates about 0.5% which will save you a fair whack of cash over now.

as a glasgow local i would seriously question why anyone would buy a newbuild flat, most seem to be about the 100k mark which would get you a MUCH bigger, better built and resellable tenement flat or a 3 bed house in the suburbs.

pink_muppet

you won't be able to exchange contracts before securing a mortgage as if for any reason you can't get a mortgage, you would legally be obliged to buy it or risk having to pay the builders 10% of the sale price if you backed out

If you want to reserve the property, go ahead, then nearer the time, you will need to get a mortgage agreed in principle before instructing solicitors to do all the conveyancing, yes you will still need a valuation as the lender will want to know the property is worth what they're going to lend you, only once all the searches and valuation are complete and you get a full mortgage offer and your solicitor is happy that everything is in order will he then allow you to sign contracts

my mortgage offer for the house we are currently buying came through a week ago and lasts until July

wslawson

Hi Labman yes the development is in Renfrew?!
Hi epz i hate to think were you must be living in Glasgow
if you could get a 3 bedroom house in the suburbs for 100k,
currently live in one with the parents in bbriggs and you can at least 2,5x your 100k for there. Tenements in glasgow are currently selling offers over 100k so circa 130K and thats in what were undersirable places.

William