In the process of buying a new build ... unsure on my rights

kingstreet

If you are using Help To Buy - Equity Loan, the maximum reservation fee is £500. The HCA HTB Agent will knock back a reservation with £1,000 fee on it.

These people seem like amateurs.

johannalf88

Hi Kingstreet, is there anything official with this on? While I believe you because of all the great advice I have seen you give my husband is a little more.... Let's go with cynical!!

Is that info on any docs? (Sorry for sticking my nose in OP.)

gyphorz

kingstreet wrote: »

If you are using Help To Buy - Equity Loan, the maximum reservation fee is £500. The HCA HTB Agent will knock back a reservation with £1,000 fee on it.

These people seem like amateurs.

Developer said because of the length of completion is too long, i do not qualify for help from gov.

Regarding the maximum, unsure if that is true or not but a friend of mine that went with Help to Buy paid 2k deposit

Mortgage_Mark_2

If you're just getting an 80% mortgage yourself then you'd risk a 20% deposit by exchanging prior to a mortgage offer, not 10%.

amnblog

Read this:

The Reservation Agreement is a legal agreement. The builder is committed to holding that property for the Home Buyer at a defined price and period of time and not to market it to any other potential buyers during the period of the Reservation Agreement. The Home Buyer is therefore protected from ‘gazumping’ or being placed in a ‘contract race’ The Home Buyer has an exclusive period in which, with the advice of their solicitor they are able to satisfy themselves in all respects that it is the property they wish to buy, that it is suitable for them, and that they have the finance available to buy it, on the terms proposed in the Contract of Sale.

If the Home Buyer does not proceed to exchange of contracts, then the Home Builder may have incurred costs in instructing solicitors, providing the detailed contract documentation, dealing with the customer’s enquiries, and other administration costs in processing the sale. They may have incurred costs in delaying the eventual sale and in remarketing of the property.

The Home Builder is allowed to deduct from the Reservation fee those costs actually incurred in holding and processing that sale.

And other detail here:

http://www.consumercodeforhomebuilders.com

Think about how you are being treated here and if you really want to make this massive commitment on these terms.

ethank

You can't pay 10% deposit and exchange in 28 days, as you have no mortgage in place for the other 90%.

gyphorz

Mortgage adviser came and set up everything. Have to wait for bank to approve the mortgage (said it would take a week) and then I need to do an exchange of contract putting down 10%. The other 10% is required upon completion of the property.

But was a rather awful adviser, was asking me questions as to why I left my home country and came here, and why I don't go back. Then started to divulge into a conversation of how immigrants are stealing people's jobs in the uk ...