New Build - fixed length for exchange?

Wizwoo

Hello,

Just wondered how strict developers are on this? Anyone bought a new build and delayed exchange? What happened?

We are looking to buy a new build from Persimmon, but we are at the end of a chain (well progressed???) and are nervous of committing to a fixed exhange date (that of 6 weeks).

Anyone gone through this? Are they really that strict if the chain your in is taking longer to than originally thought?

Ww

gabyjane

Hi well we are currently in the process of buying one but it's S/O, the only delay we have had so far is building work due to the rain! Hopefully no other hitches as they want us in asap as do we want to be in!!
Good luck with it, maybe it's worth asking them?

gabyjane

Hi sorry just read the last bit! we are renting so not sure on the chain bit sorry!

Jonbvn

Wizwoo wrote: »

Hello,

Just wondered how strict developers are on this? Anyone bought a new build and delayed exchange? What happened?

We are looking to buy a new build from Persimmon, but we are at the end of a chain (well progressed???) and are nervous of committing to a fixed exhange date (that of 6 weeks).

Anyone gone through this? Are they really that strict if the chain your in is taking longer to than originally thought?

Ww

Usually developers try to get you to exchange early by throwing discounts at you. Is this the case with you? They usually say that you will lose the discount if you do not exchange on time. They also say that they may remarket the property if exchange is delayed.

In my experience, these are usually empty threats.

Wizwoo

Hello,

Thanks for those replies. They have offered incentives - although they've not linked them to the exchange date (but I've not asked).
I was hoping that they would be empty threats but wondered if anyone on here had specific experience of it? Especially with Persimmon?

The house we want to buy (prefer the position of the plot) is already complete (since May) with another 4 of the same type ready at the end of the month.

Their prices also seem to be creeping up (even for the completed house)...which seems odd since they don't appear to be shifting that quickly. Is this the norm?

Thanks,
Woo

Jonbvn

Hi,

We bought a new build with Persimmon last August. They offered a 6k discount if we exchanged within 28 days (I think). We eventually exchanged about 2 weeks late, & they still gave us the discount.

Note that once you exchange, they will pressurise you to complete ASAP. I would ensure that you get a professional snagging inspection done before completion. Have a look at www.snagging.org for details.

Can't really comment about the creeping price increase - perhaps it is creative marketing? (or maybe I am a cynic!)

Wizwoo

Thanks again for that Jonbvn.

I guess it's the completion date I'm really worried about - when the money has to be handed over. Once in that position (ie. exchanged but not yet completed) what rights do we have?

With regards to the pressure one of the sales team is particularly pushy which puts me off getting involved at all! She's already extremely pushy!

Thanks for the tip with the prof snagging inspection - I've heard quite a lot about that and will check it out if we progress with it.

Ww

Richard_Webster

Developers can be a bit unpredictable but the general rule is that they do give you more time UNLESS the market is rising so quickly that they know that if they pull the property from you a 4-6 week delay for someone to be able to proceed is worth it because they will get that much more for the house.

Usually this isn't the case so they will wait a bit. Sometimes they will offer to take a property further down the chain in part exchange if that will help.

As a conveyancing solicitor I believe the information given in the post to be useful but I accept no liability except to fee-paying clients

Jonbvn

Wizwoo wrote: »

I guess it's the completion date I'm really worried about - when the money has to be handed over. Once in that position (ie. exchanged but not yet completed) what rights do we have?

Once you exchange, you are legally bound to buy the house. I guess your concern is that if your chain breaks, then you will be unable to complete. In this situation, it will depend on the details in the contract. Check with your solicitor on this point.

Richard_Webster

If the house is physically complete and ready for occupation then the builder will usually agree a fixed completion date with you which can be the same all the way down the chain.

If the house isn't finished when you come to exchange then you will be faced with a "floating completion date" on your purchase contract - "We'll finish the house and then tell its ready then you have 2 weeks to complete" They don't guarantee when that will be.

That kind of arrangement isn't usually acceptable to a buyer and it is very unlikely indeed that you will get any size of chain below to agree that - so as you are buying the new house you will have to be prepared to move out and stay with family etc. between the completion of your sale and the completion of the purchase of the new house.

Apart from the inflated prices, this hassle factor is another reason for not buying a new house.

As a conveyancing solicitor I believe the information given in the post to be useful but I accept no liability except to fee-paying clients

IHateDida

Nope - they are that strict - and more likely that not, they will be actually delaying exchange as in my case! We were supposed to have exchanged on the 17th July....and still haven't due to them finishing off bits and pieces! I wouldn't worry about it - they will hold in there if it means that they don't lose a sale and as the market is slowing down (esp this time of year), you will be fine!