Help to buy, 6 moth deadline

dangermouse1977

I previously posted this

https://forums.moneysavingexpert.com/discussion/5179709

in relation to help to buy & not being able to buy 'off plan' with the developer due to the house not redy to be completed within the 6 month deadline.

I have spoken to the head office of the developer who was basically no help. She said there was no way around it and their hands are tied. She bypassed the question of why the property is STILL being advertised on rightmove as 'Help to buy' when this was impossible?

My questions are.. how can they actually get away with false advertising, stating 'Help to buy' is availible when you can't do it! Also, how do other developers manage to do get around it and allow you to take a deposit for a property off plan which won't be built within the 6 month deadline?

Is there any way around the 6 month deadline for help to buy?

Thanks

kingstreet

We have a builder currently offering property which isn't going to be ready until November.

We are doing affordability and getting an agreement in principle now. They reserve and pay the fee and solicitors are instructed. The PIF & Res are submitted to the HTB Agent.

The ATP is issued. You have three months to exchange contracts, then a further six months to complete.

We then delay the mortgage application until such times as the build will be finished within six months, or the end of the mortgage offer. Some Halifax products, inc HTB - Equity Loan products now have a 31 December 2015 drawdown deadline.

HTH

Your builder wants buyers to apply for a mortgage, get an offer and exchange contracts within 28 days, the "usual" way. HTB doesn't really support that. Your builder also doesn't care that its buyers' offers will expire and a new application will be required in most cases.

dangermouse1977

sorry I don't understand ATP, PIF, HTH?!

kingstreet

Authority To Proceed.

Property Information Form

Hope That Helps.

dangermouse1977

Many thanks Kingstreet..
Just so annoying that other developers are more flexible in how they do it.. We just want that house & we can't get it!

kingstreet

It's all about cashflow.

They get 10% within a month of reservation.

On HTB cases, it can be months before they get only 5%. Some builders couldn't survive on that kind of cashflow position.

The bigger builders might be able to manage it as HTB will be a smaller percentage of their turnover...

miss_sparkle

What happens if you have your ATP but it has expired? Can it be re issued or must a new application be submitted?

We reserved back in September but still haven't exchanged, our first buyers pulled out & then our 2nd buyers have took a long time to get their mortgage offer.
Hopefully we will be exchanging this week or next, the house is all ready and complete now & we were only waiting on the mortgage offer for our buyers all searches etc are back ages ago

kingstreet

The solicitor will have to contact the HTB Agent for an extention if the ATE isn't issued within three months of the issue of the ATP.

miss_sparkle

Thanks kingstreet

It has been over 4 months now so I'm guessing a new PIF will have to be completed, good job I noticed. Our solicitor or broker hasn't mentioned anything about it

chris198232

You have options, but they are FAR too risky (put in the exchange deposit without the ATP or mortgage)!

I feel you should let it go, something else will come up but it sounds almost impossible!

dangermouse1977

I feel i may as well give up hope yes!

Trouble is as the demand is there for all newbuilds on this estate, the prices are getting sky high & with every new release they are whacking another 10k onto asking price! I feel like we won't be able to save as rapidly as the prices are going up...