New Build Early Exchange

Mil0123

Hello - I have just reserved a new build house "of plan" and need to exchange within 30 days. Whilst I have the funds to cover the deposit (10%), I have not yet sold my house so cannot get a firm mortgage offer in place as the total equity, loan value etc. are unknown, only an offer in principal. Either way, the completion is not until November so I have ample time to sell my house and get everything in place. My concern is, will developers see this as to much of a risk and not let me exchange? Is this common lace with new builds when the time between exchange and completion is so long?

Jon_B_2

How have they let you reserve the property when you are not in a proceedable position?

giddypenguin

No - you cannot exchange until you have the funds to complete - It's not a case of the developer not allowing you to exchange- it's your solicitor. As the post above says, I'm surprised the builders even let you reserve without being able to proceed. Did you tell them you haven't sold a house you are reliant on the proceeds of to find your onward purchase?

You must sell first, then either negotiate a long completion date with your purchasers, or move into rented/friends/family while you wait for your new build to complete. November is a long way off - you may find this time scale slips a little.

How long have you been on market for?

csgohan4

You better make sure you sell your property asap but I doubt you will make the exchange in 1 month.

MrJB

It seems a fairly foolish way that the builders have released the plots - any conventional mortgage offer you get is likely only to be valid for a period of 6 months - thus would expire even if you got the mortgage now anyway. Will they not defer the exchange date until less than 6 months before completion??