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Urgent Advice Needed Re New Build - About to Make Reservation Pls Help
masonj3
Posts: 202 Forumite
We have found a new build by Lion Court Homes on a development that we like. The advertised price was £199,995 for a 3 bed detached with garage. They have verbally agreed to accept a cash sale of £157K. The reservation fee is £500 with 50% refundable until time of exchange.
We own outright a 3 bed semi valued at 155-160K, Due to market trends etc we expect to get approx £140ish may be, we would make up the shortfall with cash savings.
The plot we want hasnt been built yet, the developer would expect completion within 4 - 6 weeks of exchange and estimates that the property would take 6 months to build from time of exchange so are looking early next year.
Im confused from here on as it has been years since I purchased a property. I understand that exchange is where we are both legally committed to sale & purchase. At what stage would full payment be required - I assume upon completion? Should I consult a solicitor before making a reservation?
Can someone confirm please, sorry for such a thick question lol x
We own outright a 3 bed semi valued at 155-160K, Due to market trends etc we expect to get approx £140ish may be, we would make up the shortfall with cash savings.
The plot we want hasnt been built yet, the developer would expect completion within 4 - 6 weeks of exchange and estimates that the property would take 6 months to build from time of exchange so are looking early next year.
Im confused from here on as it has been years since I purchased a property. I understand that exchange is where we are both legally committed to sale & purchase. At what stage would full payment be required - I assume upon completion? Should I consult a solicitor before making a reservation?
Can someone confirm please, sorry for such a thick question lol x
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Comments
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I'd certainly take legal advice. You need to know what happens if they don't build it, and what if you can't get a mortgage next year and what if house prices fall massively between now and then and they won't give you enough mortgage.0
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Thanks poppy sarah, some legal advice now is probably wise then. We dont need a mortgage based on the market at the moment but obviously as you say if the market drops again then there is a possibility we may need a small one x0
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How certain are you of selling your current house?
How many of the other houses on the estate are sold/reserved?
~Laugh and the world laughs with you, weep and you weep alone.~:)
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Hi Poppy
83% of the estate has been reserved so far / with regards to selling our house well I guess nothing is ever certain but the area is popular as near to city centre, motorway links etc and locally properties seem to be selling but its a good point, shame the new build isnt built would have made things easier - Life is never simple lol x0
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