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Reserving a new build plot
uknick
Posts: 1,857 Forumite
I was talking to my neighbour the other day who is looking to buy a new build. She was told that in order to reserve a plot she had to have accepted an offer for her current property or be a cash buyer. The last time I bought a new build, admittedly nearly 20 years ago, I just had to pay a deposit to reserve the plot.
By coincidence my brother is also buying a new build so I asked him about this. He told me there was now UK legislation which says you can only reserve a new build with one of the above conditions. I thought it strange the Government would introduce such a law so I Googled it, but can't find anything. So, is it true?
I can understand developers asking for it so that they can be pretty certain a) your are a serious buyer and b) completion won't take forever.
By coincidence my brother is also buying a new build so I asked him about this. He told me there was now UK legislation which says you can only reserve a new build with one of the above conditions. I thought it strange the Government would introduce such a law so I Googled it, but can't find anything. So, is it true?
I can understand developers asking for it so that they can be pretty certain a) your are a serious buyer and b) completion won't take forever.
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Comments
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I would guess that the developer whom your brother is buying from has spun him this yarn.If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales0
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I'm a FTB however I have been asked by every EA if I was selling as they cannot help me until my house had an offer on it so it's possibly true?0
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Many new build developers wont entertain discussions unless you are a FTB, a cash buyer or have accepted an offer on your property, otherwise they are delisting a plot for someone who is not proceed-able. Suppose it depends on what demand is like for the development.0
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It's no different to any other kind of purchase.
You have to be 'proceedable.' If you are a FTB, have no property to sell, need no mortgage etc you can be considered proceedable.
If you need to sell a property and it's not on the market, not under offer etc you would be considered non-proceedable by any builder or estate agent marketing a second-hand property.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
We couldn't reserve our plot unless we were in a proceedable position which means having accepted an offer on the property we were selling.
Also only having around 6 weeks to exchange on our new build purchase from the time of reservation it was also helpful that we were about 6 weeks into our sale0 -
I thought it strange the Government would introduce such a law so I Googled it, but can't find anything. So, is it true?
No law. Developers will wish to impose a 28 day exchange period though. If the buyer isn't proceedable. Then little point in accepting the reservation. Tying up money in labour and materials on a property that isn't sold is a sure way of reducing profitability.0 -
Thanks for the above. It's as I thought, developer rules, nothing to do with legislation. Probably another example of my brother getting it wrong.
He did think he wasn't a FTB for stamp duty purposes even though he'd owned three UK properties in the past. He thought as long as you weren't currently on the Land Registry as an owner you were considered a FTB. His solicitor soon put him right on that one.0 -
I think you mean he thought he was an FTB ......0
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I did mean that. thanks0
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