Bought new build, finished in summer 09, can we renegotiate as prices slide further ?

Amino

got you! As said though I think this will be our "home" for the next 10 years at least so will have to live through any other downturns/rises.

Does'nt the NHBC cover for if developers go bust now ? that they will step in a finish the builds ?

Trollfever

Will they survive until 2009?

Caveat Emptor.

Incisor

Amino wrote: »

got you! As said though I think this will be our "home" for the next 10 years at least so will have to live through any other downturns/rises.

Does'nt the NHBC cover for if developers go bust now ? that they will step in a finish the builds ?

They might finish ones which have been started and contracted buyers. But this could still leave you lving next door to a building site for a very long time.

GDB2222

There's no guarantee in your contract that they will actually finish the house in 2009. If sales are slow, they might finish it in 2010 or 2011, or ... never! Meanwhile, you will be locked into a contract to buy at 2008 prices, and you cannot buy elsewhere. Also, in the meantime, your mortgage offer will lapse. There are horror stories on this forum of people locked into these terrible contracts.

Strong tip in this market: If buying new builds, only buy a property which is actually finished and ready to move into.

Amino

I understand the risk and it is treading on already very thin ice, the problem is that we are not going to find another 4 bed property in the area for that price, looking rightmove the next "non new" house in the area is on at £339,995

GDB2222 wrote: »

There's no guarantee in your contract that they will actually finish the house in 2009. If sales are slow, they might finish it in 2010 or 2011, or ... never! Meanwhile, you will be locked into a contract to buy at 2008 prices, and you cannot buy elsewhere. Also, in the meantime, your mortgage offer will lapse. There are horror stories on this forum of people locked into these terrible contracts.

Strong tip in this market: If buying new builds, only buy a property which is actually finished and ready to move into.

as a rule of thumb I would agree with you, but there's little room for options, thanks for that tip anyhow, I will contact the sales director to find out the exact date or perhaps have this written in when we exchange as some clause !?

GDB2222

Amino wrote: »

I understand the risk and it is treading on already very thin ice, the problem is that we are not going to find another 4 bed property in the area for that price, looking rightmove the next "non new" house in the area is on at £339,995 as a rule of thumb I would agree with you, but there's little room for options, thanks for that tip anyhow, I will contact the sales director to find out the exact date or perhaps have this written in when we exchange as some clause !?

I doubt that they will alter their contract - for the very good reason that they actually don't have a clue when they will get round to building this property. Anything the sales director tells you is totally irrelevant, as it will not form part of the contract.

I think that you are buying a pig in a poke, and you are being seduced into doing that because it's a cheap pig in a poke. The trouble is that by the time prices have fallen some more, which they will do by the time you actually get into the property even if that is 2009, it may no longer even be cheap.

Amino

Hmm, food for thought, I think I will still ask though as it's quite an important point you made, obviously I would have this all in writing before exchanging.

re prices, thats the whole idea of the thread, if we can get some more £ off before we exchange on the property to account for their own price adjustments if any to get them sold, also this is not an investment property, it will be our home so as said we will live through any future downturns and rises.

The houses of this design have already come down from a ridiculous £380,000 which they actually managed to flog & exchange to someone before all this properly kicked off which is horrible for that person, but they are not worth £380,000 to start with.

GDB2222

Amino wrote: »

Hmm, food for thought, I think I will still ask though as it's quite an important point you made, obviously I would have this all in writing before exchanging.

Just run this past your solicitor. I strongly suspect that the contract will exclude anything not specifically in it, so whatever you get in writing will be worthless.

I would insist on a long-stop date in the contract, and if they resist this, as they probably will, then you can draw your own conclusions.

Doozergirl

Amino wrote: »

as a rule of thumb I would agree with you, but there's little room for options, thanks for that tip anyhow, I will contact the sales director to find out the exact date or perhaps have this written in when we exchange as some clause !?

They do not and will not set you a completion date. Your house will be ready when it's ready. Exactly what I was saying earlier - they will drag it out as long as they need to, to suit business. Not to suit you. That is why people are having such issues. Builders are putting back moving dates and mortgage offers are lapsing as a result. Off plan new build is the last place I'd put my money right now, I would go as far as to say it's risky.

wymondham

I'd be inclined to get everything in writing with the developer, and not rely on any casual conversations. The position you're in is not ideal and you need to protect yourself as much as you can. What has your solicitor said about your concerns?