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  #1  
Old 19th April 2009, 07:04 PM
lealiamb lealiamb is offline
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Exclamation New build HIPS

Hi there,

im looking to buy a 3 bed semi new build just off the m57 in merseyside.

I got my mortgage promise off Halifax and went ahead with the initial enquires.

The deal went like this.

im buying under the 75/25% scheme. on a 122k so i only need a mortgage for 93k approx.

Big banner stating "99 and move in!"
They pay 500 towards legal fees
All carpets, curtains and blinds in with deal.
Oven and hob in kitchen.

So obviously i went ahead and paid 100 reservation fee.

In order to qualify for the 75/25 i have to use their preferred solicitor and mortgage advisor.

Few days later i get a letter off the preferred solicitor who wants 150 to start things off. This is for the search fee. they want 700 approx off me. the builder will pay 500 at completion.

I then meet up with the mortgage advisor who wants about 315 off me to send to Halifax for the valuation report.

Thing is....

Ive read that all new builds need a HIP which contains all the searches that originally were done by the buyers solicitor. why am i being asked to pay for something that should already be done already? Am i having the wool pulled over my eyes? As the sales rep at the development never mentioned anything about this HIP. Nor the fact that there are fees payable after i pay my registration fee. I was expecting to pay 99 and then not worry about other fees untill i move in.

Whats happening here?
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  #2  
Old 19th April 2009, 07:43 PM
kris1anne kris1anne is offline
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Hiya

Not massively experienced in this area but assume there must already be certain agreements and contracts in place - what do they say about additional fees. It is DEFINITELY the case that since April 2008 all new builds whether complete or not need to have the HIPS done BEFORE the marketing on the property commenced so I would also be worried about you paying for it now.
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  #3  
Old 19th April 2009, 09:51 PM
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Default HIPs Personal Searches

I guess the problem is that the HIPs contain a personal search. Worth challenging the solicitor and asking the question. Why is the developer getting HIPS that contain personal searches? Because they are cheaper perhaps?

Quote:
Personal Search V Official Search
At CWJ, we decided that when compiling a Home Information Pack (“HIP), we would choose to incorporate an official local search instead of, like many other firm’s and HIP providers do, a personal search. Many people are not aware of what the differences between the two are.

An official search is a search certified by the Council, which means that if anything were to go wrong, the Local Land Charges Act 1975 makes provision for compensation. With this comes what is called a CON29 questionnaire, which can only be completed by trained Council staff who have access to the information required. This information includes any parking restrictions, environmental issues, traffic calming measures and highway schemes.

A personal search gives a result from the Register of Local Land Charges, but does not include the CON29 information and the result is not certified by the Council.

Another important factor of our decision to use an official search, is the number of Mortgage Lenders who do not accept personal searches and require an official search to be applied for. If, you provide a personal search to potential buyers, but their mortgage lender does not accept it, their Solicitors will need to apply for the search again, themselves, which defeats the purpose of a HIP.

As the CON29 provides definitive information about the property and the official search is certified and accepted by all mortgage lenders, it is important to us at CWJ to use this in our HIP to ensure that the HIP does what it is there to do, speed up the conveyancing process (and help any potential buyers).
From: Clarkson Wright & Jakes LLP solicitors in Kent, Conveyancing solicitors bromley, conveyancing solicitors orpington, Conveyancing solicitors in Kent, Conveyancing Solicitors Kent, house purchase kent, buying a house in kent, selling a house in kent*

The 99 and move in does seem misleading and you see it everywhere. Who is the developer? What does it say in the small print? Probably could complain to the Advertising Standards Agency - ASA - How To Complain
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Old 19th April 2009, 10:33 PM
lealiamb lealiamb is offline
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Exclamation hips

hi.

thanks for getting back to me.

what surprises me is the sales rep hasnt even mentioned that they are oblidged to give out HIPS.

The developer is Glesson Homes. the development is called Montreal Gardens.

here is the link
DUBDUBDUB.gleeson-homes.co.uk/SiteDetails.aspx
copy and paste it

even says it on the website. 99 and move in... false advertising or what?

i can get the moneys together but im slightly dissapointed that the sales rep hasnt give me the full SP. was happy to take 100 off me mind.
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Old 19th April 2009, 10:57 PM
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You should ask to see the HIP and if they can't produce one you can report them to Trading Standards.

This is the text from the site.

Quote:
Join us this weekend at Montreal Gardens and you could be moving into a brand new home for only 99. What's more with our shared equity scheme you could pay just 75% now but own 100% of your new home. Visit us 28th or 29th March to find out more. Please call for details.
The wording is very vague what I think they mean is "start the moving in process with just a 99 deposit, it will actually cost you a lot more as you will have to use our designated mortgage broker and solicitor, who are of course completely unbiased and will alway act in your interest and not ours plus you will end up paying a lot more than you would if you looked elsewhere"

I like the way they say that smoke detectors are fitted as standard, they would contravene the building regulations if they didn't install these.

Tony
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Old 20th April 2009, 02:45 PM
hip-consultant.co.uk hip-consultant.co.uk is offline
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Some agents and developers do not actively promote the presence of the HIP.

There are a few exceptions to HIPs being required but it is high unlikely that the property does not legally require one. You have a legal right to view the HIP as an interested buyer. They must show you this on request as they obviously consider you as seriously interested.

Prior to 6th April 2009 a property could be marketed without a HIP as long as it was ordered and the compliation had started. In this case the developer should have evidence of this and and have an estimated time for this to be completed.

In regard to searches, the large majority of solicitors and banks accept personal searches.

An expansion on Tony's thoughts if the HIP is in place.

Why is the developer getting HIPS that contain personal searches that the solicitor they have designated wont utilise?

Or is it that there isn't a HIP for the solicitor to utilise.

I would certainly ask to see the HIP, be interested in the response.
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Old 22nd April 2009, 12:19 AM
orchid22 orchid22 is offline
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Hi

You are entitled to view the Hip that they should have in place.

Please bear in mind a solicitor may still charge other disbursements eg; Chancel check, mining report, bankruptcy searches etc. They may also charge for the same searches in the Hip (water and LA) if they are more than 3 months old (although most solicitors if they are local to the area will accept the original Hip Searches)

I would definately ask the solicitor for breakdown of what disbursements they are charging you for.
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