Long stop date

alggomas

Buying a new build in a converted building.
As I understand it if the flat is not completed before the long stop date then I will be refunded all my deposit?

However I will still be liable to conveyancing fees. Also the developer will be able to sell at a higher price.

Is it not possible for me to get a reduction in price from the developer rather than my deposit returned?

I have also not been able to gain interest on the large sum I have for final payment.
Suggestions please.

eddddy

You need to check all these details in your contract.

The big developers have fairly standard contracts, but some of the smaller ones can have really 'creative' contracts.

You can try negotiating any terms you choose (e.g. discounts for later completion). Again, big developers are likely to be inflexible, but smaller developers might negotiate - if there's something in it for them.

(But I'm not sure there is anything in it for the developer, in your example. The benefit sounds like it's all on your side.)

davidmcn

alggomas wrote: »

As I understand it if the flat is not completed before the long stop date then I will be refunded all my deposit?

Don't ask us, what does your contract say?

Also the developer will be able to sell at a higher price.

Or they might have to sell at a lower price.

Is it not possible for me to get a reduction in price from the developer rather than my deposit returned?

In theory yes, but why would the developer agree to that, especially if you're correct in your prediction that prices will have risen? Generally buyers want longstops so they have the ability to walk away, not be forced to buy albeit at a lower price.

I have also not been able to gain interest on the large sum I have for final payment.

Why not? Where is it? How much interest are you expecting these days anyway?

Richard_Webster

If you go for something off plan/new build/new conversion then to a large extent the developer has you over a barrel.

I wouldn't buy such a property because they are generally overpriced and there are the uncertainties about completion etc. In an ideal world, buyers would be savvy to this and would force developers to give discounts for properties that are not ready to move in.

They can't do this because there are too many people out there who want such properties. There you have it - market forces.

Be thankful that you are not back in 2007-8 before builders added long-stop dates to their contracts. Then they could string you along forever delaying physical completion of the property ( so that your mortgage offer ran out - and in those days lenders then downvalued the properties because of the slump - and you were stuck with a legal obligation to complete but without the means....)

steampowered

You need to read your contract. Your contract contains the answers to all of your questions.

If you are not sure what a particular clause means, type it out on here and ask.