Can you reserve a new build before selling your current home?

evieeve

Hi everyone,
We have put our current property on the market this week and we have seen a new build that we really like the look of. Has anyone reserved a new build before selling their current property? The sales office is closed for 2 days and I'd like to know others experience of this before I go worrying waiting for them to reopen!

caeler

You can but most major builders will want you to exchange within 28 days which you won't be able to do (assuming you need to sell your current property to finance the new property).

A developer isn't going to want to take a reservation if you can't finance the purchase, expect them to want you to talk to their financial advisor.

Maybe ask the developer if they offer any support in selling your current property, some might offer part-exchange. Others might offer some kind of deal where you reserve, get a short window to sell your property which if you don't do they will let you get out with your reservation deposit in tact.

I personally reserved on the basis they would offer a decent part-exchange value. It was a risk but as I had bought it from them 18 months earlier I was fairly certain they'd want to do a deal.

DrPips

evieeve wrote: »

Hi everyone,
We have put our current property on the market this week and we have seen a new build that we really like the look of. Has anyone reserved a new build before selling their current property? The sales office is closed for 2 days and I'd like to know others experience of this before I go worrying waiting for them to reopen!

I'm going through something similar at the moment, and the developer we're buying from don't offer part-ex. However the development next to it did for our friends, so I think it really depends on the developer in question.

Might be worth looking on their website?

caeler

DrPips wrote: »

I'm going through something similar at the moment, and the developer we're buying from don't offer part-ex. However the development next to it did for our friends, so I think it really depends on the developer in question.

Might be worth looking on their website?

Not all offer it and some are VERY selective on the properties they will offer it on. After all it is totally at their risk and is only a means to and end to getting you to buy one of their new properties. They will make sure they do not financially loose out.

evieeve

Thanks both, we tried to part ex our current property but despite getting a decent valuation, the developer wouldn't allow us the 95% mortgage on the new house, despite having enough equity, because of the fees they have to pay to do the part exchange??
It's all very frustrating!

G_M

Why are you getting a mortgage from the developer...?

Providing you can pay for it, you can reserve a newbuild whenever you like:
* get a (proper) mortgage
* use your savings