Buying Off plan

jonnyb1978

Went to visit a new development today to look at what houses they have to offer. We like the look of one type of house however not sure of the total process.
They only have a marketing suite and in the process of building the show home. It is only a smallish development and only 4 of the type of houses we like.

I am currently researching the advantages and pitfalls of new builds but mainly wondering about the financial side.
I believe we would need to reserve the plot and put some sort of deposit down at a later stage. How would the deposit be paid. Would we need to arrange mortgage and they would release some of the funds and we would have to start repaying whilst still in existing home etc
Any advice on the financial process appreciated.

Talc1234

You will probably be asked to pay a deposit of (£500) to reserve your plot. You will need to be in a position to proceed, exchange is often expected with 28 days.

Make any negotiations on price, fittings, extras before you pay your deposit.

Mickygg

I bought a new build off plan. Put down £500 deposit iirc, the condition being able to exchange within 28 days despite not being built. Eventually exchanged 4 months later as the contractors went bust which led to a big delay.The deposit to secure the plot was paid on card.
Yes you would need to be in a proceed able position. When I exchanged I paid 5% only as the completion date was unknown at the time.You'll need to sort out your mortgage first, that's for sure.

jonnyb1978

Thanks but I dont get how I am supposed to fund a deposit of 10% 28 daya after reserving the plot. The house will not be built for another year so are yet to sell are existing house. The deposit would normally come from the equity in that.

jonnyb1978

Think I just found the answer.
You can not reserve until existing house is sold.

CH27

jonnyb1978 wrote: »

Think I just found the answer.
You can not reserve until existing house is sold.

Do they offer part ex?

jonnyb1978

CH27 wrote: »

Do they offer part ex?

This is want I wanted for a quick sale of our existing house.
They said they dont offer part ex at the moment. Im assuming as it was the opening day of the marketing suite with no houses built yet therefore waiting to see demand before offering incentives.
Our property needs a bit of redecoration so I guess we will have to do this and get it on the market asap, which will hopefully give us time before the 2nd phase of homes is released.