London - at my wits' end - new build delay and difficult developer - advice?

deFoix

MiseryChastain wrote: »

but the maximum mortgage offer I have is only £280K so I'd need almost 100K for a fairly decent second hand apartment (say, 10 years old) in an OK area.

Depends what you mean by an "OK area". That's not a bad mortgage offer. Maybe a zone1/2 flat is out of bounds but if you're willing to commute a bit there are nice enough areas in zone 3/4. Either way 2nd hand apartments are lower risk (you can actually see what you're getting) and better value for money in my honest opinion. Where abouts are you looking?

MiseryChastain

Boler1985 wrote: »

Depends what you mean by an "OK area". That's not a bad mortgage offer. Maybe a zone1/2 flat is out of bounds but if you're willing to commute a bit there are nice enough areas in zone 3/4. Either way 2nd hand apartments are lower risk (you can actually see what you're getting) and better value for money in my honest opinion. Where abouts are you looking?

Thanks for the reply. Well the new build is in Stoke Newington, loved the area and the vibe to it, which is why I'm working with my conveyancer to really make it work. However, I am insisting on a long stop date (i.e. July / August) such that if it keeps slipping then I can walk away in the summer and look at something else.

In terms of general areas, I really only looked east to be honest. North and West London were out of budget, also considered Deptford / Lewisham. I have enough for a cash deposit of 100K so I guess I could avoid help to buy altogether and look at a second hand purchase, but would mostly only be able to afford fairly decently properties but in dodgy areas like Croydon.

Mickygg

For my new build the house was late by nearly 6 months!I agree with the point due to London being wobbly in the house prices you have the trump card by willing to exchange with an already long completion date.
New builds are usually late. They want sales asap so to entice people they say they will be ready by x but then that day slips back.
I would personally pull out as I'd never commit now to buying in over 6 months time in London as the market is turning in London from what I read. 6 months could easily turn into 9 or even 12 months. Mine went from 3 months to nearly 9 months!!

rtho782

With new builds the developer holds all the cards, they view you as pond scum and are very difficult to deal with.

Assuming new builds really are your only option, there really isn't much you can do, if you leave this development the next will be just as awkward.

I'm surprised you ever got them to agree a long stop.

comeandgo

I agree with all the above, new builds usually overrun their completion dates. If you can't deal with that I suggest you save a bit more or buy a bit cheaper. There are so many problems the builders can have from bad weather to a shortage of bricks and man power. Very rarely will a developer put in a long stop date.

sturgeon

I used HTB in London, I was forced to exchange within 3 months (usually 28 days) and then the build was delayed by a total of 10 months (delay after delay). Legally I don’t think I should have been allowed to exchange, as the HTB rules dictate that completion has to take place within 6 months I think as the authority to proceed expires. Very surprised you have not had to exchange yet, and that they even considered a long stop date so soon. I had one but it was almost 2 years after the reservation date. If I pulled out of the purchase, they’d give my deposit back as the value had increased to the point they’d easily resell for more (and I could afford less as the market had moved), so I had to stick it out.



I went through 3 mortgage re-applications…buying a new build is a nightmare. I had to hope that my re-applications were granted as otherwise I could theoretically lose my deposit (but would have hoped the developer would understand as the delays were unforeseen and drawn out) My friend bought down the road and his completion was exactly when specified at the point of exchange, no delays or issues, so it can go smoothly. Makes me very anxious to buy a new build again…

ANDR£W

I'm a born & bred Croydonian & cannot wait to get out of here fingers crossed Mrs gets her new job then we can GTF outta here ,it's no place to raise a family anymore.

steampowered

A delay from May to August doesn't sound too long to me. That is only a delay of 3 months or so. I would have thought lots of developments might get delayed by 3 months?

Windofchange

ANDR£W wrote: »

I'm a born & bred Croydonian & cannot wait to get out of here fingers crossed Mrs gets her new job then we can GTF outta here ,it's no place to raise a family anymore.

I spent 25 years in Croydon - born and bred too. I was around the Shirley area which is alright, but I cannot get my head around the price of flats there right now. Someone on here wanted to spend £250k on a studio in South Norwood the other week. 2 bed flat for £750k in central Croydon anyone!? Jesus wept the world has gone completely f'ing mental.

GDB2222

I thought the reservation fee is refundable normally?