New Build - Exchange and Completion Help Needed

x_missymoo_x

Hi all,

Just looking for a bit of advice so am hoping you will be able to help and hope to put my mind at ease.

I am in the process of buying a new build and am ready to exchange contracts. I had raised a query with my solicitor about long stop dates as my mortgage offer expires at the end of Feb. He has since come back to me saying that Bloor Homes have stated in the contract that their long stop date is mid March 2014 and they are unwilling to change the wording of the contract. This then leaves me a couple of weeks where I will not have a mortgage but will still be bound to buy the property.

The builders' estimated completion date is the end of Nov 13, however the sales advisor has since called me to say this has now officially been brought forward to Oct 13. The roof is tiled and the windows are in and they are getting ready for the first fix (partitioning and plumbing), and the sales advisor has assured me it will be completed on time and no way should it go over into next year. He also said that is very rare for them to go past their completion date, but of course he probably would say that. My solicitor also seems to think I won't have a problem as Bloor would be keen to complete before the end of their financial year in Dec, however he is going to try and get them to include a clause where I should still be able to get my deposit back after the mortgage offer expires if we haven't completed yet.

What are your thoughts on this should that clause not be included? Should I just exchange contracts and hope that all will be fine - it would have to be something major to delay completion until March seeing as the house is now 'dry' - or should I be concerned about this gap between mortgage expiry and long stop date? It does seem a long shot considering we only seem to be a matter of weeks away from completion, however I have also read horror stories where people have lost deposits or had difficulty obtaining a mortgage after their original has expired.

Help and advice greatly appreciated

thedalmeny

We've exchanged on a new build as of last week.

Our build completion date has just moved from 04/09/13 to 25/09/13

I think in most cases builders will state completion is subject to some form of change, i don't blame them either.. They do an estimate date of build completion before they even dig up the ground, it's reasonable in my opinion that this is only estimate and you have to put some trust into them.

Normally mortgage companies will give you an additional month above the 6 months in consideration of new builds?

We got our mortgage offer in May 2013 from Halifax, expires 28th February 2014... So a pretty long time. May be worth contacting yours to see if the offer expiry can be increased.

x_missymoo_x

Thanks for your response thedalmeny.

My mortgage offer is also with the Halifax and I only applied in July so that may be an option to extend it.

Since my original post, my solicitor has got back to me saying that if we have not completed by mid Feb then we will be able to withdraw and get our deposit returned to us so it seems as though a clause has now been put in the contract. I've told him now to go ahead and exchange as that was my main concern. I'm probably just being overcautious

gazzabboi

I exchanged last month for a new build due in December. Mortgage offer expires in Jan. Don't worry about it.

x_missymoo_x

Fingers crossed we both get in on our proposed completion dates

caeler

Personally I'd take the risk because it is half built, year end is December and you can visit site regularly to check progress and generally make a nuisance of yourself if things start to slip. Only you can decide if your comfortable having a couple of weeks where you might not have a mortgage offer should things get delayed. You are not being overcautious.

x_missymoo_x

Thank you caeler

Fortheloveofmoney

This happened to us last year. We reserved our new build last August and it was around the same stage as yours is now ie roof and windows. We completed at the end of October.

Before exchange, the contract came through and the build date was beyond our mortgage expiry date and unlike yourself I wasn't prepared to take the risk. I can't remember the exact dates now but I think our mortgage expired at the end of Jan and the build date was by the 2nd week of February.

I instructed our solicitor to get them to change the contract as I wanted the long stop date to be no longer than end of Jan. At first their legal department refused so I spoke to the sales rep and told them that the deal was off as I wasn't prepared to sign the contract unless the dates changed. She assured me that the property would be ready as stated in October. I told her that if that was the case there shouldn't be any reason why they couldn't comply with my request.

She chased her legal document and a new contract with the amended dates came through. All of this happened within about 4 hours.

Can I ask, are you using their recommended solicitor or your own?

You do really have to push for what you want. Initially we were told we had to use their solicitor and mortgage broker. I told them that this wasn't up for discussion as I have a solicitor that has done my last 4 or 5 house transactions and that our mortgage was already sorted.

If you have a line then stick to it. You are less likely to get shafted this way.

They can change the dates, especially if they don't want to lose the deal.

WellKnownSid

+1.

I'd definitely risk it. What's the worst that could happen? The moment they're late, they can take your deposit and sue you for breach of contract, and at the same time sell your new build to someone else.

It's only money, and you only live once... :j

(That was a joke, by the way...)

Richard_Webster

Bloors are being unreasonable - threaten to walk away. After what ahhappened in 2007-8 builders have to agree back stop dates a (they never had them before).

You will probably be able to buy a second hand property more cheaply anyway.

x_missymoo_x

Thanks again for all the replies.

My solicitor has arranged for a clause in the contract whereby if it is not completed by mid Feb then I can withdraw and receive my deposit back. Fingers crossed it doesn't get that far though!!

Thanks also for the advice caeler about making a nuisance of myself if the build isn't coming along as expected, I shall definitely be doing that if necessary