Is this a good deal for £90,000?

Question

We are considering buying a flat as first time buyers. The full market value of the flat (which is a new build) is £110,000, and we have been offered it for £90,000 as an ex-showhome including furnishings on a "75:/25%" scheme.

The scheme is one where you get a mortgage for 75% of the value of the property and then you get ten years interest free on the remaining 25%.

The flat is a two bedroom property in an area of Ipswich which is being regenerated.

Thanks!

http://www.fairview.co.uk/site.asp?area=suffolk&article=modus.xml&page=site

Answer 1

I would first want to know if the 25% is to be revalued in ten years time, meaning that another extra large mortgage is then required .

Answer 2

What's the annual service charge as sometimes they can be quite expensive?

(ps. have friends in Ipswich and have spent a couple of holidays there - it's a beautiful place to live.)

Answer 3

Are you sure it's interest free?  Will you be paying rent on that 25%?  And will you have to go through the whole buying process including surveyors and solicitors to own that other 25% in two years?  

Sometimes, if things look too good to be true, they are.  Don't forget that it's a buyers market these days so ask plenty of questions and don't be afraid to bargain and be really cheeky.  When I sold my flat, half the prospective buyers took 40% off the asking price on first offer.

Never mind the furnishings of the flat - this is peanuts compared to your bricks and mortar.

Good luck with the house hunting!  

Answer 4

It sounds ok-I do not know that area, however, you need to check with a real estate attorney, and your bank.

Answer 5

yes but i think you can get a cheaper deal with a normal house not a flat

Answer 6

Looks very nice, I'd say so yes.

Follow you're heart - just make sure its perfect for you as its going to be costing you quite alot, paying the mortgage every month.

Make sure you're hearts in the property and you believe its worth every penny.

Enjoy you're new home.