New build reservation fee cancellation

tunatuna

I paid a £500 reservation fee at the end of last month on a new build home. Unfortunately this week there have been rumours at work that there may be redundancies next year. This has put doubt in my mind as to whether now is a good time to buy or not.

The terms of the reservation fee say that in the event that I cancel I would not be refunded any of the £500 fee. There's no reason given for this. No solicitors have been engaged at this stage which is a relief as I will not have to pay any of their fees.

The consumer code for home builders states the following

"When the Reservation agreement is cancelled or expires,
you should return the Reservation fee to the Home Buyer, less any reasonable costs you have genuinely incurred in
processing and holding the Reservation."

Not holding out much hope but what do you think the chances are of getting anything back?

Jon_B_2

No harm giving it a try, but as you will have signed a contract at reservation confirming you understood you would not get the £500 back, I wouldn't hold out much hope.

Argghhh

you could go ahead and take out redundancy cover?
think you will be lucky to get anything back from builder

Annie1960

I'm not sure redundancy cover would be valid if you already have some prior knowledge that there may be redundancies.

Mickygg

This has been mentioned on here before. New build sellers put in non refund deposits on purpose to stop people reserving plots until they decide if they want it.

You can ask for it back of course, but if it was anything like my old new build estate they won't pay you a penny back.

Near 3 weeks of potentially missed other buyers because you are pulling out is the biggest cost of them all for the builders.

Put it in writing to them, but don't expect anything back.

Mickygg

On another note OP in the last 3 places I've worked there have been rumours about redunndancies. If I'd not bought a property due to this I'd kick myself as properties have gone up in price and I'd now be paying 20% more at least.

Just saying if you listen to rumours without fact you might not buy a place for years!

If you are just getting cold feet then this is a different matter entirely of course and I'd strongly suggest you don't proceed on this house, £500 is nothing compared to buying a house you don't think you want.

davidmcn

Annie1960 wrote: »

I'm not sure redundancy cover would be valid if you already have some prior knowledge that there may be redundancies.

I don't see a problem if it's just vague rumours at this stage.

Jon_B_2

There is a cooling off period with the reservation fee, but is typically only 48 hours.

Freecall

davidmcn wrote: »

I don't see a problem if it's just vague rumours at this stage.

So I just heard some chaps down the pub saying that they heard that the block of flats where I live is is well ablaze with fire trucks all around.

Just a rumour of course.

Do you think an insurance company would want to know if I rang them to take out a new insurance policy?

I think that we all know the answer to that one.

DaftyDuck

Redundancies next year.... That's a long time away, long enough to get promoted, fired, marry a rich widow (divorce current spouse first, if necessary), win the lottery, develop a serious medical condition...... Who knows?

Now, I am a pessimist at heart, but even I wouldn't want to withdraw on the basis of a rumour about something so far away that may not affect you. I suspect part of this is from the stress of buying a house.

davidmcn

Freecall wrote: »

So I just heard some chaps down the pub saying that they heard that the block of flats where I live is is well ablaze with fire trucks all around.

Just a rumour of course.

Do you think an insurance company would want to know if I rang them to take out a new insurance policy?

I think that we all know the answer to that one.

Yes, because the insured event had already taken place at the time you took out the policy. Not at all the same as an employer who hasn't announced anything about redundancies, or agreed a takeover, etc.

It's more like taking out home insurance because you overheard somebody down the pub saying there had been some burglaries in the area.