First time buyer - unreasonable request from developer?

vyle

I just popped down my deposit to secure a new build apartment and was told that they will require the full deposit within 28 days - in my case this will be 75% of the purchase price so it's quite large.

The property won't be available until october as they haven't built it yet. I can get the money so I didn't think it was too shocking a request, but others I have spoken to disagree.

Is this timescale unusual? It makes more sense if the property is ready, but this one isn't...

silvercar

Two definitions of deposit: 10% of the purchase price (or lower if agreed) or the amount of the purchase price not being covered by the mortgage.

I think you are confusing the two.

poppysarah

You're buying a house that isn't built yet?

vyle

silvercar wrote: »

Two definitions of deposit: 10% of the purchase price (or lower if agreed) or the amount of the purchase price not being covered by the mortgage.

I think you are confusing the two.

Oh, I see. Well, I popped down £500 to reserve the property (which comes off the deposit) and then they want the 'deposit' (10% of the purchase price?) in 28 days. If it is the 10%, then do you know if it's possible to pay the rest off at a later date, or on completion?

This is all very confusing so any info would be appreciated.

poppysarah

Where you buying?
Have they sold all of them? What guarantees are they giving they will build any of them? What happens if trhey take your money and then don't build it?

What does your independent solicitor say?

silvercar

vyle wrote: »

Oh, I see. Well, I popped down £500 to reserve the property (which comes off the deposit) and then they want the 'deposit' (10% of the purchase price?) in 28 days. If it is the 10%, then do you know if it's possible to pay the rest off at a later date, or on completion?

This is all very confusing so any info would be appreciated.

You would pay the 10% when you exchange contracts (in 28 days?) and the remainder on completion. Your solicitor will handle all this for you. DO NOT GO WRITING CHEQUES TO THE DEVELOPER YOURSELF.

fimonkey

Vyle, are you serious????

I take it you are as looked at your other posts and see no reason for you to troll. However, WHY ARE YOU BUYING A NEW BUILD THAT'S NOT EVEN BUILT YET?

Please provide more details, such as location/type of property/price/who the developer is etc and why is it you would buy THIS particular place as oposed to any number of othr properties that must be for sale in the area where you are and must have prices dropping.

Please listen and read the info on this board before committing! £500 lost now is peanuts compared to what you would potentially loose!

vyle

fimonkey wrote: »

Vyle, are you serious????

I take it you are as looked at your other posts and see no reason for you to troll. However, WHY ARE YOU BUYING A NEW BUILD THAT'S NOT EVEN BUILT YET?

Please provide more details, such as location/type of property/price/who the developer is etc and why is it you would buy THIS particular place as oposed to any number of othr properties that must be for sale in the area where you are and must have prices dropping.

Please listen and read the info on this board before committing! £500 lost now is peanuts compared to what you would potentially loose!

Ok, here goes:

The developer is Taylor Wimpey on the Arbury Park development in cambridge.

All their other plots are built and this last crescent of the development is due for completion in approx october.

We saw the other apartments that they've made and really liked the style and size. The one we're buying is a ground floor apartment which we negotiated to £155k with carpets and integrated appliances. It's ideal because it's near to family, has two guided bus stops and a regular bus service into the city centre (that bus route is operational now while the guided bus is due to start in the summer or so).

Seeing as it's mostly built and sold it looks likely to continue.

As for security if they take the money and run, I don't know. I'm getting in touch with solicitors tomorrow, as I know that they're meant to hold money until completion and so I want to know what the solicitors will be doing with the money. When my parents paid early, the solicitors held it in an account and gave them the interest on completion.

The £500 reservation fee is fair enough, I guess, as that's coming off the eventual selling price and when I mentioned the developer to London and Country, they knew of them as being a large developer.

Honestly, the reason why we jumped at that price is because this time last year, a 2 bedroom cambridge city apartment was around £250k in a bad area. This area is very nice, has great access to work and is selling fast enough that I expect the future resale value will be huge.

The only thing is, my partner and I have no experience of this sort of thing so we don't know what's strange and what's not.

helenjg

Taylor Wimpy are in the 90% club:

http://www.independent.co.uk/news/business/news/new-members-in-90-club-899542.html

vyle

helenjg wrote: »

Taylor Wimpy are in the 90% club:

http://www.independent.co.uk/news/business/news/new-members-in-90-club-899542.html

I'll have to see what the solicitor will do with the money should they go under I guess.

They only have to stay afloat for 9 months and give me the house and I'm happy.

I wanted to discuss things with solicitors tonight but they're closed for the night.

poppysarah

But what if they don't stay afloat and you lose your money and don't get a house?

Is there nothing already built for a similar price?