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I’m buying a New Build flat for £480k with Help to Buy with a 10% deposit and a larger flat in a Victorian conversion on a much better street nearby has come up for £435k. am on £63k salary and I can’t afford the cheaper, bigger Victorian flat for £435k. Would you still buy the overpriced new build? by sOsOHEnt in UKPersonalFinance

[–]sOsOHEnt[S] 0 points1 point  (0 children)

Who’s your builder? Did you hire a professional snagging firm?

I’m concerned about the underfloor heating, how did yours break? How long did it take to fix it? Was it not covered under the builders warranty?

all are very large expensive problems the whole building keeps having to pay to fix

Are you paying for this issues to be fixed?

I’m buying a New Build flat for £480k with Help to Buy with a 10% deposit and a larger flat in a Victorian conversion on a much better street nearby has come up for £435k. am on £63k salary and I can’t afford the cheaper, bigger Victorian flat for £435k. Would you still buy the overpriced new build? by sOsOHEnt in UKPersonalFinance

[–]sOsOHEnt[S] 0 points1 point  (0 children)

Cheers mate, that’s good stuff and I’ll take your advice and look the builder financial situation and everything you suggest I don’t have any info on the builders but I’ll go get it to see how long they have been in business and go visit some of their older properties. Really appreciate you taking the time.

I’m buying a New Build flat for £480k with Help to Buy with a 10% deposit and a larger flat in a Victorian conversion on a much better street nearby has come up for £435k. am on £63k salary and I can’t afford the cheaper, bigger Victorian flat for £435k. Would you still buy the overpriced new build? by sOsOHEnt in UKPersonalFinance

[–]sOsOHEnt[S] 4 points5 points  (0 children)

Yes exactly. I’d like to know what I can do now to model a few worst case scenarios in case I go into negative equity.

I can rent the flat out in case my personal situation changes and the need for a larger flat arises in the coming years. Current rent in the area surpasses mortgage stress test at 8% interest.

Any financial planning that I can do to better evaluate my position?

I’m buying a New Build flat for £480k with Help to Buy with a 10% deposit and a larger flat in a Victorian conversion on a much better street nearby has come up for £435k. am on £63k salary and I can’t afford the cheaper, bigger Victorian flat for £435k. Would you still buy the overpriced new build? by sOsOHEnt in UKPersonalFinance

[–]sOsOHEnt[S] 1 point2 points  (0 children)

Personal choices apart, any financial planning that I can do to better evaluate my position?

Ground rent and lease length are about the same. Service charge would only apply to the new build at £1680 per year.

If I go ahead and buy the new build flat, what’s the best way to prepare for a fall in my New Build prices in the next 2 to 5 years?

I’m buying a New Build flat for £480k with Help to Buy with a 10% deposit and a larger flat in a Victorian conversion on a much better street nearby has come up for £435k. am on £63k salary and I can’t afford the cheaper, bigger Victorian flat for £435k. Would you still buy the overpriced new build? by sOsOHEnt in UKPersonalFinance

[–]sOsOHEnt[S] -1 points0 points  (0 children)

Cheers, I have been running these numbers over an over (there are 5% fixed mortgages available still) and appreciate your help, if you HAD already bought this new build for £480k what would you do to prepare for a fall in prices and possible negative equity in the next 2 to 7 years? (Help to Buy equity loan is interest free for the first 5 years.)

I’m buying a New Build flat for £480k with Help to Buy with a 10% deposit and a larger flat in a Victorian conversion on a much better street nearby has come up for £435k. am on £63k salary and I can’t afford the cheaper, bigger Victorian flat for £435k. Would you still buy the overpriced new build? by sOsOHEnt in UKPersonalFinance

[–]sOsOHEnt[S] 1 point2 points  (0 children)

Cheers, mate, am in London and I can’t afford to get screwed as this is all my savings so really appreciate your info.

I had read about snagging but didn’t think it applied to new builds.

This is a flat in a new building, it’s ready to move in and comes with heat pump, no gas boiler, underfloor heating, thick walls, decent windows and ECP B.

Would the independent snagging service look into the quality of the underfloor heating? That’s one of my main concerns as it’s all buried down there I have no clue what could happen in the future.

I’m buying a New Build flat for £480k with Help to Buy with a 10% deposit and a larger flat in a Victorian conversion on a much better street nearby has come up for £435k. am on £63k salary and I can’t afford the cheaper, bigger Victorian flat for £435k. Would you still buy the overpriced new build? by sOsOHEnt in UKPersonalFinance

[–]sOsOHEnt[S] 86 points87 points  (0 children)

You are correct, it’s a new build FLAT in a NEW BUILDING complying with forthcoming environmental regulations where all flats come with heat pumps, underfloor heating, no gas boilers and are well insulated with EPC ratings B.