New build .. what order to do things?

dodgy

Hi,

Thinking about starting to negotiate on a new build property. I'd appreciate some help as I'm confused to exactly when to do things!

- We want some modifications to the house (small things, outside tap, an archway in one wall between two rooms, extra sockets, loft ladder, etc). Do we negotiate the price then mention these, or mention these and then negotiate from there?

- The process is apparently a 'reservation fee' (£500), exchange within six weeks (10%), complete 10 within days after property is finished.

- At what point do we need to arrange a mortgage. The property won't be complete until August or September. Do we need to have a mortgage arranged to reserve? To exchange?

- How can we check we can get the mortgage we think we can?

- What if rates or mortgage products change between now and September?

Thanks for any help

NoDebtForMe_2

Hi
You can either:
Get a mortgage in principle and then reserve the plot (£500). Then you would go ahead and get the mortgage offer and as part of this process you get a valuation done (275 appx) on the property - obviously not yet built but the surveyor will go to the plot, speak to the site manager and look at any properties on the street already built that is the same as yours. Having an offer in principle however is not a guarantee of a mortgage offer .....so
OR you could get the mortgage offer and pay for the valuation and once you get it reserve the plot but bear in mind this could take days or weeks and if you havent reserved the plot then someone else could come and reserve before you. There are risks on either scenario.
You defo need the mortgage offer before exchange.
As for the modifications - you can have an outside tap, extra sockets and you would order them at your "options" visit when the roof is just about to go on your new build. You order things like the type of kitchen, whether you want to upgrade, upgrade of tiles in bathroom, ordering of flooring etc etc and you may have to pay for it all in advance or it may be chargeable upon completion. Depends on builder.
You wouldnt be able to get an archway or loft ladders etc as they haveto build to a specification and they are very rigid with them as the NHBC wont approve your house as finished to a certain standard and thus your bank wont release funds without this cert.
You can check if you can get a mortgage by contacting the bank with the best deal for you. You usually get an offer that lasts about a year and if the rates get better they change you onto that deal but if they get worse you have reserved that deal so they cant put you on the worse deal iyswim.
Hope that helps
Sarah

sandiep

Oh, you have such an opportunity here.

When i bought a new build - Dec 2006 from wimpey, i got;
- spotlights in kitchen & hall
- carpeting throughout
- upgraded washing machine & cooker & hob
- upgraded kitchen & bathroom tiles
- telephone sockets in every room
- tv sockets in most bedroom
- mortgage paid for a year (£12k) (Original offer 6months)

And then, just as i was signing the contract, i lifted the pen off the paper and said "of course, we'll need the garden turfed".

We got that too.

Our house HAD to complete before the End of Dec as it was Wimpey's year end and they had targets to achieve. It was a cancellation and we were in a very strong position.

If you are in any doubt about the mortgage, i can recommend going with the broker that the builder recommends. Because the builder will ensure that your mortgage is through on time.

What I would say, is keep visiting and walking away, each time you leave, and they phone you afterwards (and believe you me they will) just keep talking, tell them you're concerned about the costs of this, or that, and watch them bung on the inclusives.

Also, tell them what other incentives other builders are offering, and ask them to match them. Partic if someone is doing stamp duty, etc.

Go for it. You are in the stronger position, so use it to your advantage.

GDB2222

dodgy wrote: »

- We want some modifications to the house ... an archway in one wall between two rooms

Does the standard house have a door there or ....?

dodgy

Thanks for the replies - very helpful indeed.

It's got a wall there at the moment - it's to open up the lounge and dining room.

SavingSteve

I thought someone would mention, but they haven't so I will....

1) Buying an unbuilt property is highly risky. A lot of building firms are not in a very good position, so (a) the property may never get built or (b) even if yours is built the rest of the development may not be, as they won't get a buyer, and then you spend years living on a construction site while they don't build anything else. So I would say do not commit to anything until the property is built

2) NoDebtForMe must have a very good relationship with the bank. Most offers in principle I've heard of last 6 months. SO you arrange your mortgage, then the property is not built on time (as I said, building firms are struggling) your AIP expires...then what? We have no idea what the mortgage market will be like in September (IF they complete by then). What if you can't get a mortgage based on the deposit you have? What if they valuation at that point is lower? You will have paid your deposit and can not simply walk away without losing it.


Seriously, you need to think of all these things before you get anywhere close to exchanging IMO. Extras you can talk about once the property is built