New Builds and Part Exchange

WelshNic

As long as nothing horrendous turns up in the survey I don't think you need to worry, they won't lose the sale of a new house for the sake of what amounts to pennies to them.

Wolfsbane2k

badaz52 wrote: »

Hi Tim,

Just out of interest, we are currently at a similar stage to you. We have had the valuations and accepted their offer of £140k. A surveyor from Colleys came round yesterday on their behalf and while there is nothing to worry about from my point of view. How likely is it they will be really petty and the developer will start knocking money off for little things that may need doing.

I mean any house that is being part exchanged is going to need the odd job doing.

Hey Badaz.

I'm not sure - in theory they can't really drop it too much, as it's upon that basis that the reservation fee has been placed against, so if they pull out i'm not sure what happens to that fee.

Equally, in my house i have 2 bedrooms without Carpet and a bedroom in need of a plaster. This was all taken into account by the estate agent when they gave the offer because i wanted to check that they wouldn't mess me about in return.

Because i've not dropped the reserve on the table yet, i'm not sure what will go on from here.

I'm Taylor Wimpey as well, so we'll walk through this together. What state is your new house in? Built yet, or still a pile of mud?

T

badaz52

The new build has foundations but that's it, it's not likely to be ready until september/October but just trying to get everything in place now it's quite annoying though as I don't know at what stage I can get excited and look forward to moving in lol!

Wolfsbane2k

badaz52 wrote: »

The new build has foundations but that's it, it's not likely to be ready until september/October but just trying to get everything in place now it's quite annoying though as I don't know at what stage I can get excited and look forward to moving in lol!

I think the only time you can actually get excited is when you exchange - until then total costs etc can all change

Or unlike my other half, who got excited on walking into the equivilant build 20 meters further up the road..

badaz52

Well we are just waiting for the results of the survey, fingers crossed. The house we are part exchanging is only 35 years old and the surveyor said it is very well maintained so hopefully there won't be too many problems.

Interestingly the sales advisor from Taylor wimpey contacted me today, saying as the part exchange is on my parents house (going in the new one as a 3 way thing) they need to photocopy passports and a utility bill again, the part exchange deal is not 100% sorted out just yet plus we gave all our ID when we put £500 reserve on the plot (not sure if this is the way they do things).

I must admit these part exchange schemes seem really messy, as they wanted me to get a preliminary acceptance of a mortgage and register with a solicitor all before the survey was done, surely you would think they would get the survey out of the way first!

oggy1511_2

Well our valuer been out today we are just waiting for a offer back from Bovis tomorrow. All the valuer did was take photos and he said we had done a lot to the property. so fingers crossed for us everyone
oggy

badaz52

This could end up being a very messy procedure. The financial advisor and solicitor are waiting on contracts which will be released on a successful survey conducted on the house we are part exchanging. The EA we currently have it listed with will be informed that Taylor Wimpey wish them to continue to market the property.

Problem is, in light of us waiting for the survey to come back our EA has called us this morning to say we have a private buyer wanting to view the property tomorrow at the original price.

Problem is if they make an offer thats above what we are being offered by the developer for a PX we will probably accept, issue here is I really want to move this year and the ONLY reason we have investigated a PX route is because of the dreaded "chain-break".

Talk about a dilemna.

WelshNic

Just refer the buyer to TW, they may even split the difference if it means they get their sale quicker and your chain is still nice and quick.

oggy1511_2

When do they actually come do the survey on the Part exchange and if something comes up can they back out the developer that is
Thanks Oggy

badaz52

Hi Oggy,

This is the order of events with the PX:

1. Valuations are gathered from 2 independant local EA's. Ours was already on the market so Taylor Wimpey took that one and arranged just 1 more.

2. Within a few days the sales advisor at the development you have registered an interest with will get a phone call with their offer, they will call you and give you 24 hours to accept/reject.

3. If you accept you will then be called in to go through the paperwork for the plot you want, they will ask that you speak to their financial advisor to ensure you can actually afford a mortgage on the plot you want based on your salary. Once they confirm that this should be Ok Taylor wimpey will ask for a reservation fee of £500. You will then get all the information about your future home, including its address and will be shown the plans for the home and the whole development.

4. However nothing is concrete just yet. A few days later you will get an official PX offer from Taylor wimpey in writing, you will have to sign this offer within 4 days and agree to the terms. The terms basically state that their offer is subject to survey and if any work needs doing, it will be at your expense and must be done before exchange of contracts, which is a bit cheeky when you bear in mind they offer you a) less than its worth and b) you will be spending additional money on extras in the new build, as with a PX deal they usually offer you "nothing".

5. During all this you have to inform a solicitor and get a preliminary acceptance of a mortgage.

6. If the survey checks out and everything is correct, Taylor wimpey will send you a letter to confirm its a go and your solicitor will be able to request contracts etc.

The trouble is there is so much uncertainty in the early stages but it has already cost me £700 and nothing is really a go yet.

£500 reservation fee
£200 cheque for the solicitor to conduct searches upon contact with TW.