danny19861986 wrote: » Hi lads. Just as confused as everyone else on this thing. Well I understand it but clearly my solicitor doesn't. Right 1st off my new build won't be ready til next year but I'm being told when I sign contracts in the next 2 weeks or so that I'll have to have the 10% deposit paid to the solicitor when I sign the contract as it will be going to the builder once they sign there end. Here is where the confusion lies as I can't go forward with the process as I can't go past stage 1 which is uploading the signed contracts as I have to give 10% deposit to get the signed contracts. Surely this can't be right? What is the norm here with regards how this works? Obviously if I go ahead and do it the way my solicitor thinks it is then I've to come up with the full deposit for which I'll have to borrow a small bit of. And how will I then get refunded the 5%? Would greatly appreciate any help. Thanks in advance.
myshirt wrote: » Correct, but some FTB's give the 10% and then just get a slightly smaller mortgage. They do it because builders are offering fully fitted kitchens, flooring etc to people who sign contracts within 21 days of booking. You don't get that kitchen unless you sign within 21 days and pay the 10% deposit, so FTB's do it.
Daniogroove wrote: » I've never heard that, to be honest sounds completely wrong. The bank are then losing out on interest on you.. and no way they're letting that happen surely?
myshirt wrote: » What? It reduces the banks leverage if they lend you 85% rather than 90%.
testicles wrote: » What's wrong about it?
Daniogroove wrote: » Reducing your mortage doesn't help you to buy anything. It's to help with your minimum legally required deposit of 10%.
myshirt wrote: » Yes, agreed. What I am trying to say to you is that some builders don't want to be waiting on the 5% from the taxman for 7-8 months while they build you the house. It is a risk, but also they pay interest on it. They would prefer you gave the 10%. To encourage you to do this they point to their offers of fully fitted kitchens if you sign in 21 days and pay 10%. The result is people are doing it. However, yes, absolutely if you want to give them 5% and tell them hold on for the taxman to fix them up, that's fine, you can do it, you are entitled to, and they have to cooperate, but you won't be getting your fitted kitchen or floors. You will have to pay for them yourself.
68 lost souls wrote: » No you should only be giving 5% that is the purpose of the scheme.
Daniogroove wrote: » Once your htb application is successful, you give your access number ,application number and total amount available to you to your lender and solicitor. When the contracts are signed you pay the deposit -5% or amount available to you (to a max of 20,000), whichever comes first. The contracts are uploaded to your application and revenue then pay the developer the 5% directly. If the developer and the property you are buying are registered under the scheme they have nothing to worry about.
danny19861986 wrote: » Cheers for reply.I know that and you know that but clearly my solicitor isn't fully aware of how this works.
Nastygal2511 wrote: Has anyone tried to upload today? I keep getting an error message.
Nastygal2511 wrote: » Has anyone tried to upload today? I keep getting an error message.
Daisy78 wrote: » How long does it take, on average to get approval for the first stage of this process? Are we talking days or weeks?
Amzie wrote: » Hi, just need a little advise, we are unsure if we should apply for the HTB online now or in January because our earnings were higher in this year compared to one of the years we would be including If we apply now. The house won't be fully built until July maybe August. I rang revenue and they weren't very clear just that we can apply in January If we like but our P60s will need to be returned as well. Is it too late to be applying in January eg would it be processed on time or should we just apply now and lose out on extra we would get from HTB?
conf101 wrote: » If the house isn't going to be built until next summer then January or February would be loads of time to apply. If there's going to be a big difference in the amount you can claim, I'd wait.
puamch wrote: » If the HTB is used to pay part of the contract signing amount then amount should be reflected in the contract as it can only be signed by both parties upon transfer of the said amount (e.g. 10% of the total price.)
mick2311 wrote: » I have recently put down a booking deposit for a new build house. Contracts have not been issued yet but are due out anytime. House will not be built untill April 2018 at the earliest. Here's the dilemma this year help to buy relief is only 4k but if we wait untill next it would be 15k. Any advice would be appreciated. From my understanding if I sign on the 2nd of January next year and use can claim the 15k relief but would a supplier allow this length of delay in signing.
