Deposit on New Build before completion

harvey115

Yes, I am also thinking of this but it all depends on how lenient the developer is in terms of the completion date.

My solicitor and I should get the mortgage documents today (hopefully). I am also going to the site to speak to the sales manager (she is very understanding) to explain the situation and ask the site manager for the completion date to be published from their side and then the solicitor can add that tot he documents.

As everyone said house buying is one of the most stressful thing in life.

StuC75

dont worry about there leniency, key is to protect your A$$ first and foremost. When I had this situation my main worry was with the survey 'expiring' and bank potential revaluation.. which in the case of a new build can be a worry if value goes down.

At least setting the date gives the builders a definitive date to complete for - although your earlier email suggests the build phase is quite advanced - and we've all seen how quick programs like diy sos work at!..

If its any consolation re stressfull situations we had relocation,new jobs and a baby born in 1year spell - with the house move taking the longest (house sold in probate misplaced deeds!)..

harvey115

I called up my Financial Advisor this afternoon to double check the whole procedure of offer extension and if any problems are anticipated. She said they do this quite often with the lender and its usually just a phone call to the lender to request for an extension to be sent.

Although its a bit odd, I am just going to keep it simple and forget about it for now. When the time comes nearer to September I will ask for the extension not stress on it for now. Hopefully things will work out okay

harvey115

Application approved on Thursday last week but the offer letter has not be received yet. My advisor says the full pack is usually sent a couple of days later as it has more documentation involved. So both the solicitor and I are just waiting for the pack.

I called up my solicitor just to check if the Lender's solicitor is all happy with the 'agreement', she said they have not come back to her with anything further. She has provided all the documents requested of her but nothing back from the Lender's solicitors. Hope this does not add any issues.

Although I should not be worrying at all because the application has been approved, its just I have not received anything yet, just a scanned copy of the fax my FA has.

Exchange date is 28/06/2012 (this Thursday)

Thrugelmir

harvey115 wrote: »

Although its a bit odd, I am just going to keep it simple and forget about it for now. When the time comes nearer to September I will ask for the extension not stress on it for now. Hopefully things will work out okay

That's the risk you take. The developer will not give a definative completion date. There is no guarantee that the lender will maintain the terms once the offer lapses. Much can change in the next few months. As already been the case in 2012 so far.

harvey115

Thrugelmir wrote: »

That's the risk you take. The developer will not give a definative completion date. There is no guarantee that the lender will maintain the terms once the offer lapses. Much can change in the next few months. As already been the case in 2012 so far.

Yes you are correct. Its never straight forward is it.

Hopefully it works out okay... (fingers crossed)

Dave_Ham

You should be fine, trust your FA as seems to not have done anything silly so far.

Good luck...

liubeliu

harvey115 wrote: »

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?

When you exchange get lawyer to insist of a longstop date of early September as developers can rejig work schedule to get yours completed in time. Stress that if you miss longstop date then completion will be delayed as you have to get mortgage offer extended or reapply. Otherwise you will be exchanging on notice where the developer dictates the completion date which may mean your offer expires.

harvey115

Clydesdale selected Optima Legal fro representation because the solicitors I picked were not in their panel. So I am paying £250 to their solicitors messing up everything!

Optima is causing delays now and unreachable by anyone.

A single bad selection can cause so much stress and delays...

harvey115

Update:

I have not exchanged yet due to delays in all sorts of things and got another deadline of this Friday to look at.

This delay has given me more to think for then the past few weeks.

Since I am working as a Contractor and my contract is about to come to an end at start of October. I am not 100% sure if my contract will be renewed. So I basically started questioning myself if I should pull out of the deal or not. If the Mortgage offer expires, as part of the offer extension I may be asked for a renewed contract.

- House completion date - 30th Sept
- Mortgage Offer expires - 18th Sept
- Work Contract expires - 05th Oct
- Exchange deadline - 20th July

Due to the risk I discussed the options with my IFA and we have come to a conclusion to ask the developer for the following:

- Move the completion earlier to avoid Mortgage Offer expiry
- Exchange and complete on the same day

I am not sure how realistic the above would be, but I am going to speak to the developer tomorrow with the issues and explain them the risk I have to face if anything to go wrong. I love the house, but the issues are causing me so much stress.

Any suggestions and advice to persuade the developer to do the right thing? The developer is CALA.

PS - due to the loan amount I require, I am not able to use any other lender as Clydesdale uses daily rate as gross income in their calculations.