Buying Off Plans

Westwood

Hi All,

Looking for advice, im a novice first time buyer who's looking to purchase off plans in the coming weeks with a new phase launching and they will be ready summer of 2018.. The apartments in question are 235k. I am mortgage approved in AIP for 125,500 and have current savings of 85k, 40k of which is a gift from folks
.
They're looking for 5k booking deposit on the day and signing contracts in 28 days, I reckon this could be pushed/delayed for at least up to 3 months with our solicitor if needs be?


My questions are, on the launch day Ill need to show proof of funds and was told by bank not to show the AIP letter for 125,500 and to give the branch manager the unit price when I've sourced a property and he would give me AIP to show that I have mortgage approval for 90% (being a first time buyer). The thing is 235k is out of my budget but I could easily save the shortfall from now till next summer.

So I need to know from you knowledgeable folks on day of launch will I need to produce bank statements showing savings + gift letter or will i need that gift in my account? and exact mortgage approval? will this be sufficient?

When I have to sign contracts in 28 days, must I pay the difference between my mortgage amount and unit price less deposit, or can I waiver lets say 20% until mortgage drawn down on completion ?

Many thanks for advise...

qrx

Westwood wrote: »

Hi All,

Looking for advice, im a novice first time buyer who's looking to purchase off plans in the coming weeks with a new phase launching and they will be ready summer of 2018.. The apartments in question are 235k. I am mortgage approved in AIP for 125,500 and have current savings of 85k, 40k of which is a gift from folks
.
They're looking for 5k booking deposit on the day and signing contracts in 28 days, I reckon this could be pushed/delayed for at least up to 3 months with our solicitor if needs be?


My questions are, on the launch day Ill need to show proof of funds and was told by bank not to show the AIP letter for 125,500 and to give the branch manager the unit price when I've sourced a property and he would give me AIP to show that I have mortgage approval for 90% (being a first time buyer). The thing is 235k is out of my budget but I could easily save the shortfall from now till next summer.

So I need to know from you knowledgeable folks on day of launch will I need to produce bank statements showing savings + gift letter or will i need that gift in my account? and exact mortgage approval? will this be sufficient?

When I have to sign contracts in 28 days, must I pay the difference between my mortgage amount and unit price less deposit, or can I waiver lets say 20% until mortgage drawn down on completion ?

Many thanks for advise...

You'll have to pay a percentage after 28 days, usually 10% but its up to developers I think. You don't draw down the mortgage until it's built and ready. At that point You will need all the funds in your bank account.

BryanF

Op ask for construction drawings, ensure they match what you expect, and ensure they are referenced in the contract. ensure BCAR (building control regs) sign-off is in place prior to payment of balance. Make sure your solicitor is clear on this, if they're not seek advice from local chartered architect or surveyor

kala85

If you are going to be buying off the plans is the mortgage paid to the developer in staged payments or is it only when the house is fully built.

sunrainmooncl

kala85 wrote: »

If you are going to be buying off the plans is the mortgage paid to the developer in staged payments or is it only when the house is fully built.

As the second post said, you only start paying your mortgage when you get the keys

GingerLily

Can you get the HTB? That would help with the shortfall?