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  • FIRST POST
    • Bongofish
    • By Bongofish 11th Jan 18, 11:58 AM
    • 17Posts
    • 2Thanks
    Bongofish
    How early do we need to exchange???
    • #1
    • 11th Jan 18, 11:58 AM
    How early do we need to exchange??? 11th Jan 18 at 11:58 AM
    Hi all!

    We have put a reservation down on a new build (£1000). On the paperwork it says that they want to exchange contracts on the 3rd February even thought the house won’t be built until June?

    This is causing us to feel very rushed with our mortgage and also very impatient with our broker. He has told us that it’s ok for them to do this but not to feel to pressurised by the dates.

    The builder is Taylor Whimpey. Anyone any advice whether we should be contacting them and saying we want longer? As we don’t want to start the solicitors off fully until we have a clear mortgage offer....we have started them but they are at the very beginning.

    Thanks
Page 1
    • kingstreet
    • By kingstreet 11th Jan 18, 12:12 PM
    • 32,587 Posts
    • 17,540 Thanks
    kingstreet
    • #2
    • 11th Jan 18, 12:12 PM
    • #2
    • 11th Jan 18, 12:12 PM
    Newbuilds pretty much all work on a 28 day exchange of contracts target. Builders want your commitment as early as possible as they have to order materials to spec the property the way you want it.

    As long as you are making progress, they probably won't have an issue with you going a few days over but the deal you have made is based on you hitting that date, so they can look to alter it if you don't meet the deadline.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • Bongofish
    • By Bongofish 11th Jan 18, 12:46 PM
    • 17 Posts
    • 2 Thanks
    Bongofish
    • #3
    • 11th Jan 18, 12:46 PM
    • #3
    • 11th Jan 18, 12:46 PM
    I understand them wanting commitment early but our broker was abit surprised at 4 months early. We had hoped previously that we would have had to have a mortgage in place by April giving us plenty of time to shop around and review. We reserved on 23rd of December and everywhere was basically closed for 2 weeks. Now we have 3 weeks to get a mortgage and we don’t even have a full application submitted as our broker seems to be very slow :/ .
    • Thrugelmir
    • By Thrugelmir 11th Jan 18, 5:58 PM
    • 56,660 Posts
    • 50,045 Thanks
    Thrugelmir
    • #4
    • 11th Jan 18, 5:58 PM
    • #4
    • 11th Jan 18, 5:58 PM
    I understand them wanting commitment early but our broker was abit surprised at 4 months early.
    Originally posted by Bongofish
    Then your broker doesn't appear well informed. As 4 week exchange has been the norm for a considerable amount of time. However developers do have flexibility. Providing the transaction is actually progressing, i.e. you have a mortgage offer i place and your solicitor is undertaking the neccessary due diligence. Then the requirement to exchange in 4 weeks will be allowed to slip.

    Developers want a 4 week exchange in order to weed out time wasters. Large scale developements require forward planning. Labour, materials, tradespeople etc need to be resourced. Four months isn't long when building a house. An lot has to come together to achieve it. Little point in expending time and money on a property which isn't yet sold.
    “Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble”
    ― Warren Buffett
    • Dolly123
    • By Dolly123 11th Jan 18, 9:18 PM
    • 108 Posts
    • 8 Thanks
    Dolly123
    • #5
    • 11th Jan 18, 9:18 PM
    • #5
    • 11th Jan 18, 9:18 PM
    Nothing unusual about this at all, some developers sell 6-9 months before completion and still require you to exchange within 6 weeks, they want the commitment otherwise if you don't exchange then they have wasted a house on you that they could of sold to someone else,
    • robgoode
    • By robgoode 11th Jan 18, 9:29 PM
    • 29 Posts
    • 28 Thanks
    robgoode
    • #6
    • 11th Jan 18, 9:29 PM
    • #6
    • 11th Jan 18, 9:29 PM
    We’ve been instructed to go through the mortgage application with exchange due 5th February. Not due to move in until May. Started the calls to the broker today to get the ball rolling.
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