FAQs

Q1: How do I reserve an apartment?

Q2: What is buying “off-plan” ?

Q3: What is the difference between exchange and completion?

Q4: How do I go about arranging a mortgage?

Q5: What is the difference between an interest only mortgage and a repayment mortgage?

Q6: Can I sell the apartment on before completion?

Q7: What security do I have for my deposit during construction?

Q8: What is the difference between Freehold and Leasehold?

Q9: I don’t understand why I get a one-eighth share in the management company?

Q10: Why do I need to pay a service charge?

Q11: Why do i need a Property Manager?

Q12: Do I need to pay stamp duty for my one bed apartment priced at £106,750?

Q13: Can I use my own solicitor for buying my apartment?

Q14: Is pad25 going to be developing other sites in the area?

Q1: How do I reserve an apartment?

A: You can register interest now via our agent. However units will be first available on the scheme launch date on 28/9/06 from 4pm to 8pm at The Memorial Hall, Pickering.

Q2: What is buying “off-plan” ?

A: Buying off-plan is a way to secure an early purchase before the apartments are completed. This is done here by paying a small reservation fee and exchanging contracts 28 days later.

Q3: What is the difference between exchange and completion?

A: Exchange of contracts is where you formally agree to buy the apartment. This is done through your solicitor and involves the payment of a 5% deposit. Completion is where you become the legal owner of the apartment. At this point you need to pay the full sales price less the deposits already paid.

Q4: How do I go about arranging a mortgage?

A: You can call our agent who will put you in touch with an independent mortgage advisor, there will be a mortgage advisor present on the launch date at the Memorial Hall, Pickering and please use our link to the Motley Fool website for a useful introduction to the subject. Alternatively you may already have this arranged and be using your own mortgage advisor.

Q5: What is the difference between an interest only mortgage and a repayment mortgage?

A: An interest only mortgage charges you the interest on your loan only. It is up to you to then work out how you will repay the loan on maturity and some lenders insist that an additional policy be put in place to do this. A repayment mortgage costs more than an interest only mortgage as it pays the interest on the loan and also reduces the amount of the loan over time. You should always seek your own financial advice before committing yourself.

Q6: Can I sell the apartment on before completion?

A: Buyers may do this but should realise that if any resale falls through, the obligation to complete the purchase falls with the initial buyer. You should take your own financial and/or tax advice before embarking on this strategy.

Q7: What security do I have for my deposit during construction?

A: Your deposit is insured by the warranty provider, Premier Guarantee should any major problems occur with the development during construction.

Q8: What is the difference between Freehold and Leasehold?

A: Freehold is where you enjoy the eternal right to live in a unit, Leasehold specifies a fixed period of time for that right. Many new leases are 125 years in length although for Greenhaven it is 999 years and thus offers more security and we believe better value.

Q9: I don’t understand why I get a one-eighth share in the management company?

A: In this case the freehold (owned by the developer) will then be transferred to the Management Company on the sale of the last remaining unit. Residents will thus own an eighth share ( as 8 units) of the freehold in addition to their 999 year lease on their apartment.

Q10: Why do we need to pay a service charge?

A: If you owned a freehold property you would still have to pay the buildings insurance, regular maintenance and upkeep which can be expensive. The service charge covers all these liabilities in a cost effective and equitable way given that Greenhaven will be enjoyed by all the residents. It ensures that the scheme will be properly looked after and well maintained for the future.

Q11: Why do we need a Property Manager?

A: For everyone to enjoy Greenhaven to their potential and given that many people lead busy lives or even may not get on, it is good practice to employ someone who is independent to run the scheme on the residents behalf. It is up to the residents as to how much help they need, but each owner can then play a full or as little part in running their scheme. White Roses have been appointed as they have demonstrated over 20 years of success in running schemes such as Greenhaven.

Q12: Do I need to pay stamp duty for my one bed apartment priced at £106,750?

A: No, stamp duty is only payable on units over £125,000 and anyhow at Greenhaven all stamp duty will paid by ourselves.

Q13: Can I use my own solicitor for buying a unit?

A: Yes of course. However we have negotiated very favourable terms with Hague & Dixon on a bulk basis which will most probably be cheaper than what another solicitor would quote.

Q14: Is pad25 going to be developing other sites in the area?

A: Yes, we are passionate about fulfilling a need here in North Yorkshire as house prices have left many local people behind. We simply don’t buy the argument that people need to compromise on quality to afford a decent home to live in. We are not a registered charity but an organisation that strives to give our buyers a great product at an affordable price and hope that they will enjoy the living spaces that we create for years to come.