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Buying Newbuilds BMV - Deed of covenant


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There are some schemes floating around that allow local residents and local workers to buy apparently at 30% BMV. I have a colleague at work who is taking advantage of such as scheme:

http://www.rightmove.co.uk/property-for-sa...y-29038897.html

 

 

http://www.chelseacreek.co.uk/index.cfm?articleID=175

When purchasing, you pay a capped sum equal to a minimum of 30% below open market value of the apartment. You will enter into a deed of covenant with the London Borough of Hammersmith & Fulham for the remaining 30%, which will set out the conditions of resale and percentage discount to be applied. No rent will be payable to the Borough on the 30% covenanted to them. Residents at Chelsea Creek will be eligible to purchase an annual parking permit, subject to availability, at 25% of the market price.***

 

As the scheme has been designed to enable access to home ownership the properties cannot be sub-let.

 

 

Is this offer as good as it sounds, or is there a catch?

Sadly I don't qualify for this, but if I did I would almost certainly take advantage of it.

 

 

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http://www.chelseacreek.co.uk/index.cfm?articleID=175

When purchasing, you pay a capped sum equal to a minimum of 30% below open market value of the apartment. You will enter into a deed of covenant with the London Borough of Hammersmith & Fulham for the remaining 30%, which will set out the conditions of resale and percentage discount to be applied. No rent will be payable to the Borough on the 30% covenanted to them. Residents at Chelsea Creek will be eligible to purchase an annual parking permit, subject to availability, at 25% of the market price.***

They must be having trouble selling an overvalued property.

 

I note that this property has been marketed in Hong Kong:

 

QUOTE

Chelsea Creek Cocktail Invitation

 

St. George PLC cordially invites you to attend the Cocktail Party for the prestigious residential project, Chelsea Creek from 6 p.m. to 8 p.m. on 18th February 2011 Friday on 2/F Mandarin Oriental Hong Kong.

 

St George PLC is proud to present this prestigious residential project next to Chelsea Harbour for your kind perusal.

 

- 999-year leasehold

- 1, 2 and 3-bedroom luxury apartments and penthouses set in a new dockside location adjacent to the River Thames

- Prime Central London location, adjacent to fashionable King’s Road, Chelsea Harbour and Imperial Wharf

- Unrivalled transport connection, with easy access to new Imperial Wharf railway station

- 24-hour concierge and security service and underground parking

- Landscaped gardens, tree-lined roads and courtyard gardens

- Anticipated completion from Winter 2012

UNQUOTE

 

It is far, far away from Central London, despite the marketing spin.

 

The pricing? "approximately GBP1,000 psf "

 

Easy Access?:

Imperial Wharf railway station to Bank? : That's about a one hour journey, Right?

 

/more: http://www.civilengineeringnews.net/haber/...on-sw6-2qd.html

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Having a closer look at the plots available, I think those headline prices are very misleading. Here are what is still available if you use the search facility:

 

Sandford House 7 2 1 £694,950 Available View

Compass House 57 2 1 £809,950 Available View

 

£700k-£800k for a 1st floor 2br apartment? Yup, overpriced.

 

Here is the floorplan for the 695k flat:

R296_007_2_First_Floor.gif

 

Looks about 70sq m... 758sq ft? So yup about £916sq ft.

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