First Time Buyer Query for Plot Reservations

saxo_appeal

Hi guys,

Just wondering what a Reservation payment means when securing a plot for a house to be built on that you want ?

On a certain website they are letting you reserve a plot for £99 but is there any catches, is there a clause if you pull out that sort of thing?

I have asked for a meeting for tomorrow and just wanted to get up to speed with everything

eddddy

It's probably worth googling 'new build reservation fee' or similar, to get some background.

Here's a random example to start with:
http://www.conveyancing-cms.co.uk/should-you-pay-an-up-front-reservation-fee/

But given the small amount of £99, I doubt that any of it would be refundable if you back out.

If you want to do any negotiating (on price or upgrades like carpets, kitchens etc) you need to do it before you reserve.

And say that you want to read and thoroughly understand the reservation agreement before you sign it.

kingstreet

Look at this too;-

http://www.consumercode.co.uk/

saxo_appeal

Thanks buddy

We are looking at a new build in my area and the houses are looking pretty good

I have a couple of Credit Cards one sitting at £1500 and another at £6500, payments are being made and it's always been well above the minimum payment. The £1500 will be paid off in 2 months time.

Will having these cards be a bad thing because the cards aren't being cleared fully or do they look at this in a lighter manner as long as it's never missed a payment?

Obviously in an ideal world the cards should have been paid off completely, but we had to fork out for a couple of things, car being fixed was one of them

bubblerawk

i have just reserved a plot and paid £500 to do so, if the mortgage falls through we get the whole lot back. if we decide to pull out before the mortgage is approved we get £250 back. After the mortgage is approved, we get nothing back. This £500 is also given back so we can use it within the deposit or fees

Thrugelmir

saxo_appeal wrote: »

Will having these cards be a bad thing because the cards aren't being cleared fully or do they look at this in a lighter manner as long as it's never missed a payment?

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Speak to a broker and see how affordability stacks up for you. Will enable you to make an informed decision as to the best course of action.

saxo_appeal

I suppose a broker will cost a lot of money just to answer a few questions?

Been trying to find an answer/s online

Thanks for all the advice also folks

Thrugelmir

Try some online lenders mortgage calculators. No guarantee as to there accuracy though.