Buying a new build, when do you need the deposit

worldwide3rider

Hey folks!
I am currently selling my apartment and am planning on moving into tempoary accommodation as i want to be in the best and most flexible position to buy a new build with help to buy thru Taylor wimpy.

I understand that i might need to cough up a reservation fee on the plot i want to reserve when its released and that they might want exchange of contracts in 28 days however, do i need to pay a deposit on exchange or is that done on completion, the reason i am going into tempoary accommodation is to save for the deposit.

Also if i pay a deposit and the sale on my apartment doesn't go thru (i don't have a buyer yet) what will happen if my sale falls thru, will i lose my money.

It might be me but i don't think these new builds are easy!

dgtazzman

Reservation fees are (partially) refundable, mostly the amount that will be refunded depends on how much work has already been done on the side of the builders.

Deposit must be with your conveyancer before contracts are exchanged, once these are exchanged, the deposit becomes non-refundable (except under certain conditions that will be outlined in your contract, but it it very unlikely these will ever apply as they mostly have to do with delays/failures on the side of the builders).

Our conveyancer wanted proof of deposit before they would start on our case, so that might also be a stumbling block for you.

ethank

I sold my flat last August and bought with Taylor Wimpey.

Taylor Wimpey will not let you reserve until you are in a proceedable position.

This means you can either prove to them that you have the deposit or you are at least 'Sold Subject to Contract'

They will push you to exchange contracts within 28 days of reservation, and you cannot exchange contracts until you have paid your deposit to your solicitor (or you have exchanged on your sale, and will have at least the level of your deposit in equity)