Bargaining position - pulling out of new build purchase

Derboy

We reserved a new build in July last year that was due to becompleted in January. We sold our house and moved into rental accommodation. The build has been delayed three times and today we were informed it was delayed yet again. Rather than complete next month, it's now the month after.

This breaches the long stop date and I'm entitled to walk away with a full refund of all monies paid.

I'm considering doing this and looking at other properties currently on the market but I'd like to get an idea from those more experienced about the strength of my position. I've already had appliances, turf and tiling agreed FOC due to previous delays.

What, realistically, do you think might be possible in terms further freebies or financial compensation?
How keen are builders to hold on to a committed buyer rather than let them go and find someone else?

If it makes a difference, the property is one of a handful of the last being built (although they are going to start an adjacent side in the coming months)

Thanks guys.

quotememiserable

Just tell them you're dropping out and you'll find out. You not entitled to any compensation unless you can demonstrate an actual tangible loss.

Derboy

quotememiserable wrote: »

Just tell them you're dropping out and you'll find out. You not entitled to any compensation unless you can demonstrate an actual tangible loss.

I'm due to talk to them on Mnday to discuss options. I'm dealing with director level and it's expected that we'll be having a frank, professional conversation, where I'll most likely be expected to discuss remedies.

The question is what's realistic and what's unreasonable? Like any business, for them it's a balancing act between customer satisfaction and profit. They'll be motivated to keep me onboard up to a point before deciding the best course is to let me walk and try to sell the house to someone else.

I have no clue about what sort of margin there is in new build property so having an idea of what a builder can offer and still be motivated to complete the deal would be helpful.

pleasedelete

Derboy wrote: »

Not sure how this is relevant to my question, other than you making a snarky comment or just being nosey.

Well are you and the company director both lawyers? If so why do you need advice?

I cant think of another relevant profession.

Derboy

pleasedelete wrote: »

Well are you both lawyers? If so why do you need advice?

I cant think of another relevant profession.

I think you've misinterpreted my use of the word "professional". I simply meant that a) I'm not dealing with the site sales person and b) I am involved in the industry to a degree so have some understanding of their position but not enough to know the limits of what I can successfully negotiate.

However I still don't see how it's relevant but if it has a bearing on your advice, I'm all ears.

Hoploz

I would assume that if the date which it should have been ready by (as per your contract) has passed, you would be entitled to claim the additional rent you are incurring.

But I think you need to ask yourself whether you still want the house or not. You don't want to cut your nose off to spite your face. Go in with threats and demands and they are likely to not like it. Genuinely, consider whether if you found and bought something else would you be in sooner and happier in 6 months time? Looking at the bigger picture.

pathtofreedom

What is the area like you're buying in? If you reserved it in July last year if you pulled out would they just be able to add 20k to the price and sell it to someone else tomorrow? Leaving you still in rented looking to find extra deposit and trying to find a new house somewhere else?

If the prices in the area haven't increased much since then, or have decreased, I'd think you'd have more haggling power but it depends what are you trying to haggle over exactly? They won't be able to finish the house any faster from what you've said, so are you ready to walk away? Have you looked at any other places you might like more now so just want out? Or what are you trying to achieve with this exactly?

[Deleted User]

Remember if you go for another new build, you could go through the same thing again. It seems to be a common practice to delay.., and depending on the area, prices will probably be higher.

Try and negotiate but if any part of you still wants the house (hopefully in another month rather than another year or so it would take for another new build to be ready), leave yourself a way to back down.

Derboy

House prices are fairly static and the house is of a size and value that limits it to certain types of buyers. It's not a mansion by any means but out of around 60 houses there are only 5 of that type on the development. They have the same house on a different development with a deal advertised offering nearly a £10k reduction for completion before 31st March (assume this is their year end). The site is nowhere near ours and I've no idea how quickly houses are selling on it in comparison to our development either.

There are a couple of other houses on the market at the moment that are ready for us to move into now that we may be interested in but we're not completely ready to walk away from the new build so I certainly won't be backing myself into a corner.

At the moment their national sales manager is embarrassed and extremely apologetic and has intimated that they will "definitely do something". They were out of the office and said they'd be talking to the MD on Monday and would get them to call me.

My question is what realistically can I expect to get from the builder for agreeing to stay onboard? Money off, loads of freebies or a just a bit of free carpet?

melstar11

I'd look at this differently: what do you need to see from them to stick with it? At the moment the questions you are asking make it sound as though you aren't all that bothered, but are out for what you can get - sorry, that's how it reads.

What are your rental circumstances as in how long is the initial AST and will you be under any pressure to sign up for another fixed period once it is over? If so then will the builders cover the rent? What about your removal costs perhaps?

If the longstop date is going to be missed, what does the contract say about this? That would be the first thing I would look at.

melstar11

Sorry - so contractually you are released from your obligations if you want to be and that's all it says?