New Build Pyrchase Procedure

Youngie007

Hi Guys,

I'm looking at moving now to a new build. Says on the website of the company that a fully refundable £1000 deposit is required to secure a plot. They've told me though that they will not take a deposit unles I have sold or am in a position to comlpete on the sale of my own property.

Problem is though, how can I sell my own property or indeed be in a position to complete when the house I am buying hasn't even started to be built yet?

If I have sold it I will have nowhere to go. If I were to go into rented, the fees for searches, deposits can quickly rack up.

Also, if I sold my current house I would then have to sit (somewhere) with a substantial sum of money in the bank for more than just a couple of months whilst waiting for the new house to be completed. Would I then be liable for a tax on the "profit" however temporary, from the sale of a house?

Anyone else had and issues like this?

Many thanks in advance.

Youngie

alex_163163

It's pretty standard when buying a new build. You need to have sold, or show you have the funds to buy without selling current property, before you can reserve.

Some options hat spring to mind are:
1. Does the developer offer a part exchange scheme? You could look to see what price they would offer you. That way you usually get to stay in your current home until the new one is ready.

2. If you sell your current house on the open market, make sure EA tells prospective viewers that you need to stay in it until the new house is built. Yes, this may limit your interest, but it's an option. I had recently been buying a new build and my buyers (FTBs) were happy to wait (early Dec to end of April) until my new house would be ready.

3. Or like you say, move into a rental. But that wouldn't be my preferred option either tbh.

Youngie007

It's ridiculous. Who (apart form a small few) has the funds to purchase without the need to sell?

I am going to look into the situation re part exchange though. I'll update the thread as soon as I've found out what the crack is.

G_M

Take care you don't fall in......