Acquisition Price
Usually, a build contract will not cover every cost that will be incurred prior to completion of your home. So, with this in mind NewBuild will help you assess the total costs required to complete the home before you start construction.
This will include everything necessary to meet local authority requirements, code compliance certification, and the full completion of your home to satisfy the lender’s requirements. NewBuild Plan will create reserves – allowances for any additional costs. The total cost including the dedicated reserves is called the ‘Acquisition Price’.
This will include everything necessary to meet local authority requirements, code compliance certification, and the full completion of your home to satisfy the lender’s requirements. NewBuild Plan will create reserves – allowances for any additional costs. The total cost including the dedicated reserves is called the ‘Acquisition Price’.
The ability to provide these reserves depends on the valuation and the credit criteria of the lender. The ‘purchase price’ for lending purposes is the lower of the two assessed figures – ‘acquisition price’ or valuation’.
Any additional value attributed by the valuation (inherent value) is not used as a deposit’, but will support the acquisition price.
If you have owned your section for 6 months or more, any additional equity gained may be used as ‘deposit’.