Deposit on New Build before completion

casslass

That's excellent news that is has come through quicker than expected! Sorry can't help with your question though!

harvey115

It seems like the speed is all to do with the recommendations of the Solicitors by the developer. I think they already have all the correct contacts at hand to complete the conveyancing process. On top of the speed I am also getting £1,000 towards the legal costs. So a good deal in all respects.

I was just being naive in my above question, I am going to add a witness (my accountant).

All other processes seems to be going okay, just wishing to get the mortgage sorted sooner as well.

StuC75

But how long is your mortgage offer good for? You seem to have near on 3 months between exchange and completion -- that seems an awfull long time for the mortgage offer to last..

Dave_Ham

Apologies missed a couple of additional questions..

Yeah, Accountant signing will be fine. They usually have speedy teams around them when developing so not unusual that this will be all done in a timely manner - lets hope the build goes the same way as sure the rain in the last couple of weeks did not help..

Good luck..

harvey115

Yes the mortgage application has all the details enclosed anyways so as part of the offer I believe I will be getting details on the completion date etc. I think as standard 6 months is usually allowed in accepting or completion for the mortgage offer.

Hopefully the completion date works out okay. I did went in to see the plot and saw almost everything done from outside and electrics work being carried out inside and it was still 4 months from the completion month. So I guess the work is going okay as well (fingers crossed).

Now that you have mentioned the completion I come to another thought:

- I am currently renting
- My short hold tenancy agreement will come to an end on 14th of October
- If the completion gets delayed what am I going to do?

I think I will raise this to me solicitor to put in the agreement, to allow compensation or disbursements for any further charges once my tenancy agreement finishes. What do you think?

Another sticking point I have in the agreement is one of the covenant:

The Transferee shall not be part with and share possession or occupation of the property other then fully let or transferred.

Seems like the above covenant does not allow me to have paying guest and I am also not allowed to sell part of the house. Although I am not planning to do any but its a big house (6 bedrooms), this covenant seems a bit illogical.

Trollfever

I think as standard 6 months

The property is not completed on time, the mortgage offer has expired and the EU is in meltdown...............

harvey115

Come to more details on this.

I have read through the whole of the agreement and the TP1 form. I do not find any specific date of completion on it at all. The agreement mentions that the solicitor's will serve a notice once the house is complete and the purchase needs to be completed within 10 days of serving the notice.

Is this a norm with New Build houses? I was only told that the house will be completed in Sept and no exact date was given. The reservation document that I have from the developers does state the completion date to be Sept 2012 but not mentioned in the agreement.

I guess I should better talk to my solicitor once she tomorrow (she is off for 2 days).

harvey115

Hi Guys good news:

My FA has just confirmed that my application has been approved by the lender and that they get the offer fax by the lender tomorrow morning. I am very happy...

The only thing remaining now my solicitor putting my mind to rest as well.

harvey115

So now I have my mortgage offer sent to me, but I need some advise:

The offer expires in 90 days (on 18/09/2012)
The house has a completion date of September 2012 (no date just the month)

I told my broker that I was expecting slightly longer expiry at least, but she said that is not a problem 2 weeks before the offer expires we will request for an extension.

I am a little worried now, does Clydesdale have any problems in such cases?

StuC75

No experience of the Clydesdale mortgages; in my scenario Britannia were ok to extend (different background). However we still hadnt exchanged at that point.

So I would be very cautious of having this scenario that you would have already exchanged & be committed with the offer then expiring.

Maybe have your solicitor specify a completion date (Say set as 7th)- so that in worse case if that lapses they can apply to force completion in time for mortgage offer expiring... Rather than just a completion of September..