New Devlopment

L

Libby001

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I am possibly interested in a new housing development, can anyone guide me through the steps with buying a brand new house. The houses are only just started.So will be possibly the end of the year before they are ready. What I want to know is if you wish to purchase do you just pay a booking deposit until the house is built, or do you have to pay a 10% deposit, or is it done in stages??

If anyone could advise what normally happens??
 
Hi Libby are you a FTB?
If so it is worth bearing in mind that you get mortgage interest relief for 7 years.... 7 calendar years... so if you close in December... you will get 1 month out of the full year with mortgage interest relief... so 6 years + 1 month in total relief...

you would miss out on 11 months interest relief so potentially a large sum...
 
Hi Libby are you a FTB?
If so it is worth bearing in mind that you get mortgage interest relief for 7 years.... 7 calendar years... so if you close in December... you will get 1 month out of the full year with mortgage interest relief... so 6 years + 1 month in total relief...
Click to expand...

That's hardly correct, is it? I would have thought it would be 7 years from the date of purchase?
 
eiregal said:
That's hardly correct, is it? I would have thought it would be 7 years from the date of purchase?
Click to expand...

I think I have to agree, we closed on December 1st and no one said anything about Rent Relief being annual based.

I'd be interested in a link where this can be verified.

Libby, if you are interested in a development I woudl contact the Estate Agent in charge and ask them your questions, they would be the ones who will know the best.

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magoko101 said:
Hi Libby are you a FTB?
If so it is worth bearing in mind that you get mortgage interest relief for 7 years.... 7 calendar years... so if you close in December... you will get 1 month out of the full year with mortgage interest relief... so 6 years + 1 month in total relief...

you would miss out on 11 months interest relief so potentially a large sum...
Click to expand...

AFAIK the above is correct

Bear in mind with it being a new development that it will probably run way over schedule. Check out the horror stories on this forum about long delayed builds where the OP has signed but when it comes to closing the value has dropped so much that the bank won't give the amount agreed and the buyers are trying to get out of their contract

Just one example:
http://www.askaboutmoney.com/showthread.php?t=81430
 
addob said:
I think I have to agree, we closed on December 1st and no one said anything about Rent Relief being annual based.

I'd be interested in a link where this can be verified.
Click to expand...

Here you go...
Saw this on [broken link removed]

The revenue will define a year as a tax year...

Mortgage interest relief is paid to first time buyers and owner occupiers at different rates.

First Time Buyer's
  • You can claim mortgage interest relief at the highest level, for the first 7 years
  • The relief is calculated on the interest part of your mortgage payment only
  • Up to a limit of €20,000 for a couple / €10,000 for an individual, per year.
  • Relief is granted at 20%.
Click to expand...
 
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