Worried about completion of New Build

adz3785

Morning!

In a bit of a predicament!

We reserved out new build house with Persimmon Homes at the end of August 2009.

The build of the house started approx 1-2 weeks later and they started to make some good progress and we were confident they would be able to complete for us to be in before christmas. But in the last 2-3 weeks it seems our house is less of a priority and the other 3 houses they are building along side ours are now weather tight and 1st fix mechanical and electrical are now underway.

However our house has the main roof on, but still awaits completion of the lean to roof above the garage, aswell as installation of the windows and doors!

I raised our concerns with the sales rep early last week, and again we popped in last saturday. She advised us that our house is down for december completion and that our windows were ready to be installed and should be done on monday gone. Its now thursday and all they seem to have installed is the front door?

She also advised us that it had to be complete by the 18th December as that it when Persimmons break up for the christmas break! We are very doubtful of this and are concerned that if it isnt complete before the 31st December we will need to pay 1% stamp duty (approx £1650) which we just dont have!

On numerous occassions we asked if Persimmons would pay the stamp duty IF it wasnt complete by the 31st December, but the sales rep refused to entertain the fact that it wouldnt not be complete by then!

Being an Architectural Technician and having worked in the industry for the past 6 years, I know when things are going to be tight. We are 5 weeks away from the 18th December and there is still a hell of alot to do!

We love the house and wouldnt dream of pulling out, but just as a scare tactic could we threaten to pull out of the deal? although we have exchanged contracts so, would it cost more than the £1650 (stamp duty) to pull out? I dont want to call their bluff and then for them to say "well if you do that its going to cost you £XXXX, so paying the stamp duty will be the cheaper option"

Any advice/suggestions more than welcome.

Thanks
Adam

Jonbvn

Since you have exchanged contracts, it would be madness to pull-out. Persimmon could sue you for all the additional costs they would incur for your breach of contract. These costs would be much more than the stamp duty.

Unfortunately, new build contracts never specify a fixed completion date, with only some woolly words about being "reasonable". Therefore, you are between a rock and a hard place.

DVardysShadow

Too late. You should have specified in the contract that Persimmon would be liable for SD. As their pitch was it would be ready, they would not have had a problem - well they might have had, but they would have swallowed it to keep up the pretence that the house would be ready.

An option might be to take ownership [complete], but put a massive retention on to cover snagging, but your lender might be unhappy to play along with this.

adz3785

We tried to get this in when we were reserving our plot etc.. but the sales rep just said they wouldnt do that, otherwise everyone would ask!

So thats that idea out the window!! Hmmmmm......

DVardysShadow

adz3785 wrote: »

We tried to get this in when we were reserving our plot etc.. but the sales rep just said they wouldnt do that, otherwise everyone would ask!

So thats that idea out the window!! Hmmmmm......

It was also a very indication that they would not finish the house by Christmas, because they were not prepared to put their money where their mouth was.

adz3785

I dont think its impossible, but to achieve the completion date of the 18th December, they would need to work overtime and/or weekends!

Is there anything else I can say that would make them realise we cant afford the stamp duty?

DVardysShadow

I doubt you could say anything. You have signed the contract and have no levers for influencing them.

welshy_2002

did you tie them down to an actual completion date in the contract? If so, what are the penalties they will incur if they go over the allocated time? If there are sufficient penalties, you may get some compensation to cover the stamp duty.

adz3785

They will not tie themselves down to a definate date, as they could be subject to adverse weather conditions and delays in material delivery times.

Working for a building company for 6 years, we never gave a definate date as we knew it would always be held against us.

The sales rep showed me a sheet from day one, detailing the completion dates for each individual plots and ours was December Completion.

Now she assures us it will be complete, If it is, great, but Ill be going through with a fine tooth comb!! If the house isnt perfect, Ill pick up every last snag I can possibly think of!

F_T_Buyer

Persimmon give you 2 weeks notice to completion, and they only officially finish the build when signed off by the NHBC. Hence it would have to be my the middle of Dec.

My house is being built, and the kitchen's are going in this week along with the bathrooms (well I assume). It's already fully decorated with the second fix done (mine should be complete mid Dec); yours sound quite tight if windows are just going in at the moment.

If I were you I would get everything ready your end, make sure your solicitor has your deposits and your insurance is arranged. When they give you the 2weeks notice, request to complete earlier (although your solicitor has to be ready).

adz3785

Well ive just gave the sales rep an ear full, and she has been promised by the builder that all 4 houses, including ours WILL be complete before or on the 18th December!

The windows are getting put in on Monday and whilst they have been waiting for the windows they have progressed with the 1st fix mechanical and electrical.

She advised that IF the windows arent in on monday, I should go speak with the Site Manager myself! Which ill probably do, just to stress that it needs completing for the 18th December!

We'll see what happens on Monday!!!