New build, sellers have changed offer?

[Deleted User]

Hi i'm in the process of buying a new build, the original price was £315000, 12.5% deposit, stamp duty paid, ( so we would be paying £275625 )
Now they've come back to us and said no mortgage company will accept the builders 12.5% so they are saying they will drop the price to £291375 and still give us 5% deposit and stamp duty paid, the deal will equate to exactly the same amount and us buying the house at £275625, what do you think about this?
I'm after some advice on what to say next to the builders, as they have devalued my house, something they said they would not do when i first asked about dropping prices off the original value.

Any advice would be greatly received.

neas

walk away? :P

Lotus-eater

You'll probably get the same advice as the last thread....

[Deleted User]

Yeah i suppose i'll get everyone telling me to leave it but its such a nice house/area.
Just wanted people's thoughts on it, thanks.

poppysarah

Don't buy it.

Run. As far from the new builds as possible.

silvercar

Now they've come back to us and said no mortgage company will accept the builders 12.5% so they are saying they will drop the price to £291375 and still give us 5% deposit and stamp duty paid, the deal will equate to exactly the same amount and us buying the house at £275625, what do you think about this?

The deal hasn't changed, you are paying for the house exactly what you are paying before.

If you wanted it then, why wouldn't you want it now?

Do you want to pay £275,625 for it, or not?

Any supposed builders deposit, stamp duty deals etc are just weasily words on paper. You are paying what you are paying.

Actually for comparison purposes you should look at it as paying £267,597 as you would pay stamp duty on any other house.

Generali

I suspect it's going to be very hard to sell a house for £267k as it's so close to the stamp threshold so the very maximum it will be worth to someone else will be £250k unless the Tories change the SDLT rules as they claim they will if/when they get in.

Just a thought.

[Deleted User]

My only issue is that the first offer meant that with theirs and my deposit i would only be borrowing 71.4% on the mortgage, now i'll have to borrow 77.5% on a mortgage with the reduction they have put on the house which in this current market means not getting as good a rate as i would of done with a 75% LTV mortgage, which i had planned on doing.
Do you think it would be unfair to go back to the builders and ask them to drop the house value further so i would get back to a 75% LTV.

merlinthehappypig

Deleted_User wrote: »

My only issue is that the first offer meant that with theirs and my deposit i would only be borrowing 71.4% on the mortgage, now i'll have to borrow 77.5% on a mortgage with the reduction they have put on the house which in this current market means not getting as good a rate as i would of done with a 75% LTV mortgage, which i had planned on doing.
Do you think it would be unfair to go back to the builders and ask them to drop the house value further so i would get back to a 75% LTV.

Certainly there is nothing unfair about what you suggest. They may have not changed the price, but they have changed the deal and you reckon that this will cost you money.

Point this out to them and ask them to reduce the price to get you back where you were before.

Most builders are desperate to sell at present and I can't see them losing the sale for a few thousand pounds. If they do walk away. There are plenty of new builds for sale and very few buyers.

Personally I wouldn't have anything to do with gifted deposits of any type. It's that sort of thing that inflated prices and contributed to the problems in the late 80's and I can see it all happening again.

abaxas

http://www.youtube.com/watch?v=u5Snehl2bAk

Nuff said....

WillowCat

Deleted_User wrote: »

I'm after some advice on what to say next to the builders, as they have devalued my house, something they said they would not do when i first asked about dropping prices off the original value.

Any advice would be greatly received.

The builders haven't devalued the house - according to the first deal it was worth £267,000 ish, and according to this deal it's still worth £267,000 ish.

All the builders were/are trying to do is massage the land registry figures to imply that the house was worth more - looks good for them when they sell the other houses in the development. If it had been worth the £315,000 then someone would have paid that, with no sweeteners needed.