deposit

MNM2903

We are looking to secure a plot for a new build that's due to be built in about a years time. We have had an advisor getting us a decision in principle and ill be getting the outcome tomorrow.

What I was wondering is when we would need to give our deposit as we used some of what we had to clear an overdraft and store card so we currently have £2100 but we require 8k so if we paid the £500 deposit for the build on the plot we want would we still have the year the property is being built to save the deposit?

Thrugelmir

When do you need to exchange contracts by? As that's when the deposit will have to be paid. Unlikely the developer will hold the plot for a year on a £500 reservation fee.

MNM2903

This is what we are not sure about. We are saving 1k a month and could probably lend it if need be. Just not sure how it works. It will be more clear tomorrow as we are going to speak to the site and our advisor. Just thought I would try and get a head start by asking here.

makeitstop

Is the £500 an actual deposit, which offically connects you to the plot, or, is it an "early bird" scheme whereby you have first refusal of a plot once it becomes available to the open market.?

MNM2903

It's a deposit for the plot. We needed the decision in principle before we can do it. We have got that now. I thought if we did we would then have a good length of time to save for the deposit. I'll be able to clarify all of this tomorrow.

lee111s

You'll need to find out from the builder when they'd expect you yo exchange contracts. If it's more than 6 months before the property is due to be finished you will have to find a lender who is happy to extend a mortgage offer as most have a maximum of a 6 month limit.

With all due respect, if you haven't got the deposit now you're not ready to buy a house. What about solicitors fees? Stamp duty? Moving costs? Furniture and white goods when you move in?

You'd also be wise to have an emergency fund for when you move in too, for the just incase situtations.