How to reduce the risk of buying off-plan?

drc90

kingstreet wrote: »

Your offer wouldn't lapse.

You simply pick a new product and Halifax has Colleys refresh the valuation after six months.

Isn't a new valuation part of the problem though? If the value of the house has dropped in the meantime, the new valuation will be lower and the lender won't give you as much as you've agreed to pay for the house?

Thrugelmir

drc90 wrote: »

Isn't a new valuation part of the problem though? If the value of the house has dropped in the meantime, the new valuation will be lower and the lender won't give you as much as you've agreed to pay for the house?

There's always that risk. Though the developer wants to sell the property.Better for them if they are building something which is presold.

Don't worry about the 28 days. Providing everything is moving forward. The timetable is often a lot more relaxed.

drc90

Thrugelmir wrote: »

There's always that risk. Though the developer wants to sell the property.Better for them if they are building something which is presold.

Don't worry about the 28 days. Providing everything is moving forward. The timetable is often a lot more relaxed.

Thanks, but what do you mean there's always that risk? If I do have a mortgage offer, am I not covered as long as they complete within the period of that offer even if house prices go down during?

Thrugelmir

drc90 wrote: »

Thanks, but what do you mean there's always that risk? If I do have a mortgage offer, am I not covered as long as they complete within the period of that offer even if house prices go down during?

Weather or other unforeseen circumstances can cause delays. That's the nature of construction. Though these days work is focused on sold units.