New build - Before exchange ?

metal675

Hi all,

Good morning. I have a query regarding new build purchase that I was looking for some assistance?

I have recently put reservation on a new build property and due to exchange contracts fairly soon.
The mortgage valuation has been done and the mortgage offer received.

1. I have now found 'negative' information about a toxic development in the vicinity that could have direct affect on the value of the property and health of residents. There are online petitions regarding the other development and politicians lobbying for and against it.

2. I have also found that some similar properties were sold cheaper and are being sold at a cheaper rate in the next phase by the developer.

Considering the above two points

- Can I pull out of the sale?
- Can I ask the developer for a price reduction at this stage? Does it normally happened and is there anyone who has done that?
- If I indeed pull out, what happens to the mortgage offer? Will this affect my credit score if I apply for mortgage in future

What is the recommended strategy/ ways to bring this up?

Thanks

mailmannz

Avoid like the plague should be your only strategy! You haven't exchanged contracts so you are good to pull out if you want (although, have you paid a deposit? That might not all come back to you if you have).

Lucky_Duck_2

I think many new development attract some adverse reaction from the local press/politicians so I wouldn't be too worried on that point..

metal675

Thanks so far.

Just to add more information -

I have not paid any deposit, it is a small reservation fee that is refundable less administration fees

The noise and criticism is not about the new build property. It is about a project in the vicinity that will cause long term air pollution. The usual arguments about new jobs vs environment and health.

Lucky_Duck_2

Its not unusual for later plots to be sold for more than those at the start of the development but if future builds are being offered for sale for less then that would be a concern.

You wouldn't be the first or last person who's house purchase hasn't proceeded to completion so I wouldn't worry about any impact on your credit record

LandyAndy

metal675 wrote: »

Thanks so far.

Just to add more information -

I have not paid any deposit, it is a small reservation fee that is refundable less administration fees

The noise and criticism is not about the new build property. It is about a project in the vicinity that will cause long term air pollution. The usual arguments about new jobs vs environment and health.

So, do you need a job at this facility or do you need your health?

metal675

Thanks.

well I meant to ask if the mortgage offer will remain valid for another property?

If not, will this adversely affect any future applications.

metal675

LandyAndy wrote: »

So, do you need a job at this facility or do you need your health?

I am not going to work at that facility.

The govt/ council argument is that it will create employment. Local residents argument is that it will create massive pollution.

Both are true.

What I was saying in my OP is that it will adversely affect price in future and besides the next phase is being sold cheaper than what I got it for.

I have got a huge discount over the asking price - but again that discount would have been factored in original price.

Thanks

Lulu0110

Did your solicitor throw up this problem or did you find it? Perhaps speak to the local council about it. I would personally not proceed as the reservation you clearly have will certainly occur to any future buyers.

chappers

what exactly is the facility in question, legislation is pretty strict on emissions

metal675

Lulu0110 - The developer had mentioned about it, but only when I read up more on the internet I found how controversial it is.

Anyways, I am planning to renegotiate directly with the developer on the weekend.

As a clueless FTB any tips, dos and donts?

I plan to argue on the lower prices in the next phase that will be ready in a years time and asking them to match that.

The one I reserved is ready to move and the developer wants to complete by end of the year, which means they want to get rid of it before the end of the year.

Also the banks valuation has come up £1000 lower than the agreed price. Is that usually normal or does that mean I am paying more than actual value?

Can I use that in negotiating as well?

Thanks