Exchange a year before completion and Help to Buy

greggoulding

Hi,

I paid a reservation fee on a new property last weekend, but am now a little concerned about the times quotes. The developer want me to exchange within 28 days, but it won't be ready until July. It has said that it can say it will be ready for June to keep the bank happy, and then say it was delayed.

Also I am using the new Help to Buy, but am told that you have to complete within six months of exchange.

The mortgage will also expire within six months too, but we can apply for a new one, obviously something which will cost and is a risk if I don't get approved and have to buy it!

Exchange within 28 days seems fairly standard practice for new builds, but seems a big ask!
I love the flat (well, show home) and would ideally like to buy it... what would anyone else do?

kingstreet

We are newbuild brokers and we would not submit a mortgage application until the property is within six months of being finalised. We then know the offer will last as long as it could be needed.

As far as HTB is concerned, you are correct about the six months from exchange. IMHO the builder is being unrealistic releasing property so early and expecting buyers to commit to potentially wasted expense.

greggoulding

Thanks for that. What is odd is that it only released the final phase a few weeks ago, with all not ready until July 14. They are selling quickly, with many of the ones we wanted (we bought an apartment in a huge block) sold already, and when we there they sold at least two. Maybe it's a game for people who don't need mortgages!

kingstreet

It may be people speculating on the value increasing and selling them on before they are built.