Help to Buy Exchange of Contracts - buying off plan

Gene_Geney

kingstreet wrote: »

This?


TBH I've never come across that before and not only do we get the ATPs issued to us, we're also copied in on the ATEs and Sol Form 1s for time of completion. It's never come up.

If you have a query, call your local HCA HomeBuy Agent and ask them. We've always worked on the basis of exchange within 28 days and completion within six months of the issue of the ATP.

Most of what we do hasn't been built at the point of reservation.

Yes indeed. Interesting that you've never come across it before - perhaps it's one of those 'rules' that they don't enforce much. I'll give my local agent a call tomorrow and ask the question.

Gene_Geney wrote: »

Seems like a similar situation to me. I'm going to try and get the exchange of contracts delayed and see where I go from there. If things go well at that point, I'm going to ask the solicitor to negotiate a long stop date for when the mortgage offer/ATP will expire. If they don't like that, no sale.

Otherwise do you think my plans (above) are sensible? I know one thing's for sure - I won't be using their recommended solicitors!

LDO

We're in a similar position.

House not ready until September, but we're in the process of selling our home now with an expected completion of sale end of February.

Our builder wanted to put the HTB (also equity loan option) application in when we received the original offer in December, and indeed did so against our wishes and the advice of our IFA, and were correctly told by HTB administrators and ourselves that it was too early and the ATP would expire before the house was even built! HTB agent told them to wait until at the very least 9 months before the genuine expected build date. I do think the Help to Buy ATP's can be extended if there is a unforseen delay in the completion (build delay etc) but that's only what I've been told by the IFA and it isn't done willy nilly by the HTB agent.

We've had to be really really clued up and clear with the builder when we can put the HTB in, when we can submit the mortgage offer and when we can formally exchange.

In my experience so far it seems the builders reps on site are so eager to get the exchange in place that they lose sight of the actual deadlines that should be controlling each step of the process.

My advice: Be clear on the deadlines and stress on each and every occasion to the builder the dates that you can do each thing. They won't lose your sale unless its evident that something is going to go wrong. It's mostly eagerness on their part to get the deal done and dusted.

At one point they wanted us to exchange before we had even done the formal mortgage application! :rotfl: Some of the builders reps to be fair have been excellent and know their stuff. Others are just going through the motions, incorrectly.

ethank

The reason for that is that they want you in a position where you are exchanged as it is more difficult to walk away. They don't want to tie up development plots with sales that will not complete.

ruggedtoast

Gene_Geney wrote: »

Firstly, any mortgage offer is likely to expire 6 months after being accepted. Even if we left acceptance of the offer right up to the last safe moment, that would still leave the offer expiring before completion. Any delays and we'd definitely need to get another offer. What happens if Help to Buy terminates prior to then and we couldn't get another Help to Buy mortgage?

Unless you have the funds to make the purchase yourself then you would be in deep water, to use a polite turn of phrase.

Buying off plan is a bit risky if you need a mortgage. In a normal residential sale you exchange and complete on the same day or a week or two apart. If you're waiting months then your circumstances can change which may leave you in the situation of choosing to hide the change from your lender, and risking mortgage fraud, or telling them and losing the mortgage.

Trying to get a longstop date put in for completion is a good idea as builds often run and you cant be in the position of finding HTB or the mortgage you need is gone and you still have to buy a house.