How can I delay exchange & completion with Barrat?

Martyn1984

Hello.

My girlfriend and I are in the process of buying a new build house through Barrat Homes and would love to delay the completion by one month. We have not exchanged contracts yet but are on the verge of doing so. There is no chain so it is just us and Barrat Homes.

The reason we wish to delay is that my current mortgage on the house I am part exchanging is fixed until the end of the following month. If we complete sooner we have to pay £3500 as an exit fee to our previous mortgage provider. This money would be so helpful and would help us to afford carpets and furnishings.

Does anyone out there know of any way we can delay exchange or completion? It is only one month so it seems rediculous to us. Barrat are of course telling us we cannot do anything and they set the date. They did give us guide days from the start but all the same, we are only asking for one month.

Any help would be very much appreciated.

Many thanks in advance.

Martyn

DVardysShadow

The Early Redemption Charge itself is ridiculous. I cannot see that this fee would be justified to be more than the mortgage you would pay to the end of the term.

I think you may need to play hardball negotiation with Barratt and revise the price. I would think that an amount equal to 1 month's interest at 8% pa on the whole price of the house extra for 1 month's delay would be fair - and about £3000 less for completion to Barrat's timescale would be right.

Or negotiate with the lender to see if you can pay your mortgage payments in full to the end of the term up front and escape the ERC.

caeler

Is there any way you could port your existing mortgage and take out extra borrowing for your needs? At least you'd avoid the ERC.

csq

Hey Martyn, speak with your Barratt Homes representative and be honest. They should understand, and unless they themselves have a rule imposed by their managers to complete the selling of the plots in less than a month, they should extend your completion having heard the reasons you presented here.

They extended my completion by 90 days because I was declined the mortgage after three weeks of submitting documents to Santander, the day before exchange of contracts, and because I wanted to wait for a bit to apply for a Natwest mortgage which had a better rate.

Martyn1984

Thanks for your reply caeler,

You are right that this would certainly avoid the ERC, however because my current lender is the Woolwich, and the best LTV we can get is 85% it means we need to be with a lender that has a milestone around that figure. With the Woolwich we need a 80% LTV before their rates are reasonable and for the same mortgage porting my existing one the repayments would be a whopping £600 extra per month. Nice idea though and I appreciate your reply.

Thanks

Martyn

Martyn1984

DVardysShadows,

I totally agree it is a ridiculous ERC - unfortunately when taking it out I did not foresee moving within the fixed term period. It does however appear to be what it is and there is little I can do about it other than try and move back completion by 30 days.

I have tried negotiating with the new lender but they are giving me a lot already including the survey fees and legal charges thrown in etc.

Barrat on the other hand keep refusing out right and telling us we knew their time scales from the word go. We are already one month behind because my mortgage company were experiencing problems with their software. The Barrat representative was trying to get some carpets thrown in for us (which would be approx the value we are losing) in order keep us from trying anything to delay completion but I don't know what I can do and it's not looking like he is getting anywhere with it.

Thanks again for your response.

Martyn

Martyn1984

Thanks csq,

It's very useful to know they are able to move their completion date by 90 days. Perhaps I can use this to make my case.

I have been honest with our representative and he's allegedly been trying to play our hand for us with the management. So far now joy.

This has all been very useful thanks for your replies. It is just frustrating that 30 days will make £3,500 worth of difference to us, and it's probably a drop in the ocean to them.

Thanks


Martyn

Okydoky25

Can I ask where your buying this house? I really can't see that they would have buyers banging down their door for a purchase tbh. I'd be telling them they can wait 30 days or you walk. Unless they find a cash buyer who's desperate to move in they are not going to find anyone else who can complete any quicker than you!

Martyn1984

We are buying the house on the Fifth Avenue development in Harlow. It doesn't help that we have part exchanged our house with them and they already have a buyer, so it would cost us a lot more to simply walk away. The houses have been selling well, and we got in early to secure a specific plot we liked more than the others.

terrierlady

you are the BUYER ,they want exchange asp the sales neg is PAID on exchange so will push for exchange as will all the sellers but you hold the key to the front door for the people who are buying yours, speak to them if they can wait your ok. be honest with the bully boys explain you cant exchange due to funds let them worry how to fix it but words of warning you cant have it all builders all want 28 day exchange and offer incentives to get you to do this

geoffky

Go on a pretend holiday..Simples