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Pulling out of buying a new build!
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siowenson
Posts: 116 Forumite
My partner and i put a £100 deposit down on a new build persimmon 3 bed semi in east lothian, scotland, last november. We put our 2 bed apt up for sale at the beginning of march for £138k fixed price. After only getting 6 viewers in 7 weeks we changed the price to offers over £124k as reccomended by out EA. That was 2 weeks ago and we haven't had anyone viewing since.
Our new house will be complete at the end of june so naturaly we are getting a bit worried that the apt might not sell. I rang up the persimmon sales rep at our site yeasteday to find out what would happen if we pulled out from buying the house. Apparently it would cost us around £50 per day after the completion date to cover persimmons advertising costs to selll the house on. Eek! Thats £1500 a month!
The girl said she is going to enquire about a possible part exchange offer for our flat. Does anyone on here have any experience of this? I pressume they wont offer anything near the market "value" for the apt considering it was "valued" in march at £140k. I told the girl we would need £135k as this plus our savings would give us a 10% deposit on the new house and anything above that is a bonus (on hindsight i should have kept my trap shut). I should add that we purchased the flat from persimmon 3 years ago for £105k and its in the same development as the new house we are buying.
Can anyone offer any suggestions on what to do as this is a very worrying situation.
My advice to anyone moving house is: dont buy before you have sold.
Our new house will be complete at the end of june so naturaly we are getting a bit worried that the apt might not sell. I rang up the persimmon sales rep at our site yeasteday to find out what would happen if we pulled out from buying the house. Apparently it would cost us around £50 per day after the completion date to cover persimmons advertising costs to selll the house on. Eek! Thats £1500 a month!
The girl said she is going to enquire about a possible part exchange offer for our flat. Does anyone on here have any experience of this? I pressume they wont offer anything near the market "value" for the apt considering it was "valued" in march at £140k. I told the girl we would need £135k as this plus our savings would give us a 10% deposit on the new house and anything above that is a bonus (on hindsight i should have kept my trap shut). I should add that we purchased the flat from persimmon 3 years ago for £105k and its in the same development as the new house we are buying.
Can anyone offer any suggestions on what to do as this is a very worrying situation.
My advice to anyone moving house is: dont buy before you have sold.
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Comments
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Have you signed a contract with the new build company? I would have presumed that the £100 depsite is what you would lose if you pulled out.I am an employment solicitor. However, my views should not be taken to be legal advice. It's difficult to give correct opinion based on the information given by posters.0
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I do remember signing something when we put the £100 deposit down.
Im going to phone my solicitor tomorrow to find out more.
When we bought the apt 3 years ago it was a new build from persimmon, we paid a £500 deposit on the day and then a further £2000 on completing the missives. Is this the norm? Does this mean that i probably haven't signed the missives for the new house or is this just wishfull thinking?0 -
I know developers in the US have been suing people in your position to complete. I don't know whether under English/Scottish law Persimmon can do this or not but definitely worth asking your solicitor the question what your maximum total liability is if you chose not to continue.0
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I'd read the small print in the contract to see exactly what it says about terminating the agreement before completion. Then call your solicitor to discuss.
I'd be a little careful if your solicitor was recommended by Persimmons. They may get a lot of work from them and not want to upset a good deal. If in doubt, ask the solicitor to put in writing (i.e. in a letter to you) exactly how much it will cost to end the deal. A solicitor may BS you over the phone, but they'd be reckless to do it in writing.I am an employment solicitor. However, my views should not be taken to be legal advice. It's difficult to give correct opinion based on the information given by posters.0 -
The solicitor im using is a buisiness friend of my step-fathers.
He helped us with our previous house purchase and although I dont know him personally he seems like a very nice man.0 -
He/she should be fine.I am an employment solicitor. However, my views should not be taken to be legal advice. It's difficult to give correct opinion based on the information given by posters.0
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Normally as you have said there is usually a payment of around £2000 paid after the initial £100. I would think, and you should hope, that the missives are not yet signed and you can walk away.
Fingers crossed. Good luck.0 -
You bought a new-build flat 3 years ago for £105k - you'll be lucky if you get that much now when you sell. Talk of £138k is kite-flying.poppy100
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You bought a new-build flat 3 years ago for £105k - you'll be lucky if you get that much now when you sell. Talk of £138k is kite-flying.
Up untill a couple of months ago the identical flats to mine were selling for £135k.
I just wish i put mine up for sale earlier.
Saying that, even though I would love to move into this new house, part of me hopes that we can walk away from the purchase, keep our flat on the market to see what price we get first and then buy a house AFTER the sale.
I dont know, im no expert. Im just a bit(very) worried if we take on this larger morgage and interest rates go up along with the cost of living we are going to be struggling to have a happy life once we have children etc.
To give you guys an idea: we earn about £47k per year combined and our new morgage would be for £182k.
Is this stretching it a little too much?0 -
Your repayments on a £182k mortgage would be around £1200 per month. How does that compare to what you are paying now?poppy100
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