Redrow Early Bird Reservation

cascader

HI Folks

We are looking at a Redrow development and are first on the list to be contacted when a plot becomes available to early bird in about 4 weeks time. They have said the property will be ready in August 2016 so they are looking around March when the plot will be ready to actually reserve with contract.

What steps did you need to go through to initially early bird the plot? We won't need to sell our property and can secure an 85% loan to value mortgage plus we can pay say a 10% deposit.

They have said two similar plots have been early birded with a price of £313,000 however when they are actually released they will be a higher price?

Any advice appreciated :-)

Boleuge

When we did the early bird we had to prove we were in a position to proceed, in our case that we had accepted an offer on the house we were selling. Redrow called the estate agent to confirm this was the case, we didn't have to produce paperwork etc.

cascader

Thanks, we have spoken to Redrow and they have said in principle there won't be a problem as we do not need to sell our existing property to to buy the new build. We have a mortgage in principle and have cash to for the deposit and for the remaining cost of the property. Did you find that the price went up a lot from early birding to actually exchanging contracts?

libf

cascader wrote: »

Thanks, we have spoken to Redrow and they have said in principle there won't be a problem as we do not need to sell our existing property to to buy the new build. We have a mortgage in principle and have cash to for the deposit and for the remaining cost of the property. Did you find that the price went up a lot from early birding to actually exchanging contracts?

Are you buying in the first phase of releases or a subsequent phase? Generally if a phase is popular then the next phase will be priced higher.

cascader

Hi! No this is the first phase released and we are looking for another year before the property will be ready. So currently £313,000 with actual reservation about Feb.

We have got in very early and don't have to sell our existing property to buy.

makeitstop

Prices can and do rise during a phase also, it happened near me on several Redrow developments. Annoyingly, only some have had price increases, while one particular type house that hasn't sold well can be had at a fair discount (not that everyone knows this though)

I would say that if it's open to early-bird in four weeks, and yet not due for completion until August next year, you can bet your life there will be price increases.

We were told early-bird was unavailable for more than nine months before scheduled completion too. Appears to be different depending on site it seems.

Kat88

It seems incredibly early to be given the chance to early bird when build is still a year away. You say it will be one of the first to be built, has planning permission actually been given yet - it's worth checking? Can you say which Redrow development it is?

spiritless

We were looking to early bird a property that would be ready in 12 months time. We needed to put a £1000 deposit down and that gave us first refusal to fully reserve around 6 months before the house was ready. We needed to be in a position to proceed at that 6 month marker, though I know that's not relevant to you as you aren't selling too.

In our experience, houses are around 10k more now than on their first phase (but this is phase 4 and the houses have sold very very quickly).

As it happens, we've not reserved as we found a slightly older house that was more suitable. But we were sold on the redrow home for a long time and were happy to pay the premium for the new house.

makeitstop

Yes, does seem early to offer people the chance to early bird a plot. We were told is was six months out from completion, and that this had only just changed to nine months.

God only knows what the truth or reality to this is, but it does appear that there are variations between sites.

cascader

Hey! Thanks again for your replies they are proving very useful.

Yes it does seem a long way off however we are in a kind of “pre early bird” phase as we can’t actually put the £500 deposit down until say another month and only then in February would we pay the actual deposit and exchange contracts. We have been told by another Redrow advisor that they rarely release plots to reserve more than six months in advance.

So my questions are:

When Redrow ring to say that we can early bird, what paperwork do we have to provide.

If they are saying now the price for the plot is £313,000 what would you say the worst case scenario increase would be? They have said that the price would probably rise. We could stretch up to £340,00 but that would be pushing it.

Thanks again :-)

makeitstop

cascader wrote: »

Hey! Thanks again for your replies they are proving very useful.

Yes it does seem a long way off however we are in a kind of “pre early bird” phase as we can’t actually put the £500 deposit down until say another month and only then in February would we pay the actual deposit and exchange contracts. We have been told by another Redrow advisor that they rarely release plots to reserve more than six months in advance.

So my questions are:

When Redrow ring to say that we can early bird, what paperwork do we have to provide.

If they are saying now the price for the plot is £313,000 what would you say the worst case scenario increase would be? They have said that the price would probably rise. We could stretch up to £340,00 but that would be pushing it.

Thanks again :-)

Cascader,

If you are in a position to "buy now" without having to sell your current property, then I reckon you could strike a deal with Redrow at the current price, negotiate on specifying all your extras and choices to the house, get all legals sorted, pay deposit and exchange contracts. Then, when the house is nearly ready, you can deal with the legal completion and bingo..job done.

This is most certainly what I have been told by them, in that a full purchase can be made NOW, if you're able to do that. At least if you're 100% sure of going ahead with it, you'll secure the house you want and they'll get a guaranteed sale.

I guess you'll need to check that against your particular development, but it seems to be how it is here in South Wales.