We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Expected to complete before house has finished being built?
Jonesy88
Posts: 959 Forumite
Hi :wave:
We are currently looking at buying a property in the West Midlands - and looking to buy off-plan with building due to commence May 2014 and finish December 2014.
To secure the plot we want we're required to pay a £1k deposit/reserve, which we're happy to do. However the EA have said the developers have stated a completion date of September 2014.
I thought the completion date was where you basically hand over the money in exchange for the keys and move in? How can we complete before the house is finished? Is this normal for buying off-plan?
We are currently looking at buying a property in the West Midlands - and looking to buy off-plan with building due to commence May 2014 and finish December 2014.
To secure the plot we want we're required to pay a £1k deposit/reserve, which we're happy to do. However the EA have said the developers have stated a completion date of September 2014.
I thought the completion date was where you basically hand over the money in exchange for the keys and move in? How can we complete before the house is finished? Is this normal for buying off-plan?
:rudolf: DF by Xmas 2018: #83 £8,250/£15,000 55% :rudolf:
SPC 7: #135 :staradmin | MFW 9.72% | Groceries: £6.49/£80 | Exercise 0/20 | NSDs 0/15
SPC 7: #135 :staradmin | MFW 9.72% | Groceries: £6.49/£80 | Exercise 0/20 | NSDs 0/15
0
Comments
-
Typical. As soon as I posted this the EA responded.
Exchange of contracts: 7th September
Completion: December.:rudolf: DF by Xmas 2018: #83 £8,250/£15,000 55% :rudolf:
SPC 7: #135 :staradmin | MFW 9.72% | Groceries: £6.49/£80 | Exercise 0/20 | NSDs 0/150 -
Don't even assume it will definitely be December!!!!
The contract is likely to say that you have to compete within about 14 days of the builder's solicitors telling your solicitors the house is ready. This could be November or maybe March 2015. December is just when they think at the moment it will be finished.
This is one of the dangers of buying off plan.
You will need your solicitors to negotiate a term that if the house is not physically completed so that you can legally complete before your mortgage runs out then you can pull out and get your deposit back.RICHARD WEBSTER
As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.0 -
Thank you for your response, we have a clause written in to protect us in the event of a significant change in the expected build completion date.:rudolf: DF by Xmas 2018: #83 £8,250/£15,000 55% :rudolf:
SPC 7: #135 :staradmin | MFW 9.72% | Groceries: £6.49/£80 | Exercise 0/20 | NSDs 0/150 -
-
No it doesn't - but that wasn't my question. We currently have a property with equity and a portable mortgage. We have already spoken with a mortgage advisor and i'm relatively calm about the mortgage side of things. However i have no experience with buying a new build off plan and was originally confused due to the exchange being 3 months before completion.:rudolf: DF by Xmas 2018: #83 £8,250/£15,000 55% :rudolf:
SPC 7: #135 :staradmin | MFW 9.72% | Groceries: £6.49/£80 | Exercise 0/20 | NSDs 0/150 -
Do see how long any mortgage offer will last for before applying. Not many providers will leave there offer open for that long, meaning you will need to apply again. To save yourself the issue - you should apply closer to the completion date.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.2K Banking & Borrowing
- 253.6K Reduce Debt & Boost Income
- 454.3K Spending & Discounts
- 245.3K Work, Benefits & Business
- 601K Mortgages, Homes & Bills
- 177.5K Life & Family
- 259.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards