Having second thoughts about a new build

Kam101

After a meeting with our solicitor last week I am thinking of pulling out of our purchase of a new build house that is due to be completed in December 2010. We have paid a 500 pounds holding deposit but haven't signed contracts yet. I am aware I will lose part of the deposit which is fine but I have also made our kitchen and bathroom choices from the nominated suppliers. Again haven't actually signed for any of those yet. Am I right in thinking we can still walk away now and only lose part of the holding fee and the solicitors fees for any work they have already carried out? Thanks for any info ....

CloudCuckooLand

Depends what you signed in relation to the holding deposit/choices.

Should escape relatively unscathed.

If its not going to be ready until December, I doubt they'll be fitting the choices for some months yet, so won't have ordered/bought.

<sebb>

Ask you solicitor? They should know what you are liable for.

RobertoMoir

<sebb> wrote: »

Ask you solicitor? They should know what you are liable for.

This.

If a solicitor is engaged and knows what you've done already then asking a forum for help is pretty much the definition of having a dog and barking yourself - or asking a herd of cats to bark for you.

Kam101

I have already contacted my solicitor this afternoon and am waiting for her to return my call. Just thought someone here could advise in the interim.

Kyrae

Would have thought you can pull out anytime before exchanging contracts.

Can I ask why you're having second thoughts? We're currently buying a new build too!

Kam101

Hi Kyrae,

There are a number of reasons but mainly because we were told the contract was subject to finance and we've now received the contract and there is a clause in it that states we only have 4 weeks to notify them if we aren't able to get finance. This would be fine if the house was going to be ready soon but it won't be completed until late 2010 so we can't even apply for a mortgage until the summer, then obviously we will already be in contract! Also there are a few other things that I'm not happy with, garden size, lack of garage (and no space to build one). I just think in hindsight this probably isn't a very good investment in the long run and we could get much better value if we buy something older and do a bit of work ourselves.

Kyrae

Sounds very sensible to drop out now then Ours said we had to exchange contracts within 6 weeks, but 6 weeks came and went and it was about 5 months later that we exchanged contracts, and only 3 months before completion so the gap isn't too bad for us. The mortgage expiring seems to be the main problem with buying new build, it's just so risky, who knows what mortgage rates and criteria will be like in 6 months or so time. We managed to get a clause in our contract to say we could drop out and get our 10% deposit back if our mortgage offer expired and we couldn't get another one, but from reading other posts on here it seems that most builders won't even agree to that! Hope you manage to drop out trouble free, as you haven't exchanged contracts you shouldn't have any problems!