I've been asked to put down two
Oct 18th 2006, 10:31 pm
#31
Forum Regular
Joined: Sep 2006
Location: Chiclana
Posts: 64
Re: I've been asked to put down two
Originally Posted by anabella
He will still have to deal with the developer as the property is being built.
What happens is that the property already has a mortgage on it that would start as soon as the keys are handed out. This is normally for 80% of its value, as you are already giving the remaining 20% while it's being built. This doesn't mean that you have to stick to that existing mortgage, you can always change it to meet your needs.
What happens is that the property already has a mortgage on it that would start as soon as the keys are handed out. This is normally for 80% of its value, as you are already giving the remaining 20% while it's being built. This doesn't mean that you have to stick to that existing mortgage, you can always change it to meet your needs.
The bank guarantee has nothing to do with the mortgage. the bank guarantee protects the buyers deposit i.e the 20% should the developer go bust, fail to finish the development for whatever reason. If the contract is with the 3rd party it is possible that the bank guarantee is invalidated.
Last edited by Agnes; Oct 18th 2006 at 10:44 pm.
Oct 18th 2006, 11:06 pm
#32
Joined: Jun 2006
Location: Aspen, CO
Posts: 9,845
Re: I've been asked to put down two
Originally Posted by Agnes
No not every case if you are buying second hand, i.e not direct from the developer, the contract could be with the 3rd party and then the bank guarantee is invalidated. I pulled out of a purchase because of this.
The bank guarantee has nothing to do with the mortgage. the bank guarantee protects the buyers deposit i.e the 20% should the developer go bust, fail to finish the development for whatever reason. If the contract is with the 3rd party it is possible that the bank guarantee is invalidated.
The bank guarantee has nothing to do with the mortgage. the bank guarantee protects the buyers deposit i.e the 20% should the developer go bust, fail to finish the development for whatever reason. If the contract is with the 3rd party it is possible that the bank guarantee is invalidated.
I hope that we are not confussing this buyer even more. There is so much to consider when buying a property it can be quite overwhelming.
