Could someone decipher this email please.

YoungBlueEyes

It's my sister but she hasn't an account on here to I'm posting for her.

She really doesn't want to walk away. So few houses come up in our town, made harder by a small budget. She loves this house!

AnotherJoe

YoungBlueEyes wrote: »

It's my sister but she hasn't an account on here to I'm posting for her.

She really doesn't want to walk away. So few houses come up in our town, made harder by a small budget. She loves this house!

Then she will have to wait.

One issue worth considering, completion seems to be many months away from what i recall you posting. Most mortgage offers are for 6 months. So,two things arise from that;

1. Will she be able to get the mortgage extended or a mortgage with another lender should the six month timescale be extended? Is she on the limits for what she can borrow or comfortably within, suppose rates were 1/4% higher wouldnthat give her an issue ?

2. How stable is her job? There's always a risk between exchange and completion but usually that's a small one because it's a week or two. This will be many months.

3. (I know I said 2 points but I just thought of this) it's imperative she gets a backstop date. This is a date by which she can back out. Suposebthe developer runs into issues and the building date should slip back b aa year ? Other houses may become available and she'll be in limbo unable to switch.

YoungBlueEyes

Good points, thanks AnotherJoe. I'm not sure about her mortgage dates, I'll tell her.

ThePants999

I am 100% unsurprised that they won't move out early. Think about it - they're part-exchanging. People only part-exchange for a hassle-free life. Why would you take the financial hit of part-exchanging with a builder, whose offer will be lower than an open market offer, only to have to also find yourself rented accommodation or move in with family until the new build is complete? If you were willing to do that, might as well sell privately for full whack.

That said, I am a bit surprised by the builders. I know they don't like to have cash tied up in a part-ex house for too long, but I didn't realise they actually tried to tie the part-ex sale into the new build chain - seems a bit cheeky to me.

YoungBlueEyes

This is all new to me so I couldn't tell you what's cheeky from what's normal. But (if I understand correctly) the vendors don't own the house anymore effectively. The EA said to only go through the developers with questions and concerns etc. So if they're throwing up a brick wall it's game over eh?

AnotherJoe

ThePants999 wrote: »

That said, I am a bit surprised by the builders. I know they don't like to have cash tied up in a part-ex house for too long, but I didn't realise they actually tried to tie the part-ex sale into the new build chain - seems a bit cheeky to me.

That was my first thought but I don't see what alternative they have, it would seem that the Px sellers can stay in the house as part of the deal. So completion can not occur until the new build does.

ThePants999

"Effectively" is probably true - the vendors have likely exchanged contracts for both sale and purchase with the developer, so although they still own their current house until completion, they're legally obliged to sell it to the developer. The developer is effectively negotiating with your sister to sell it to her immediately after buying it from the current owners. And they're only actually buying it from the current owners when the new house is ready for them to move into. So yeah, this particular game is indeed over, though that doesn't mean your sister has to pull out.

TheBanker

YoungBlueEyes wrote: »

Update - so the house A people don't want to move out and the developers aren't playing ball. Sis emailed them saying she wants normal exchange and completion, her own solic etc, they said nope. She said let me think about it and get back to you.

So is this hard ball or brick wall? Has anyone dealt with The New Homes Group before?

I have, and I used my own solicitors. Wasn't a problem. Their first letter (after my offer was accepted) said exchange required within 28 days and completion on notice. We did not exchange within 28 days but that was mainly because the vendor's solicitors were slow. I had said I would not agree to completion on notice without an end date. By the time we were ready to exchange, the vendor's new property was complete enough for her to be able to agree a fixed completion date.

It is funny as neither the vendor or I were in a huge rush (neither of us in chains - I'm moving out of rented and she's moving into a new build). Only The New Homes Group seemed to be in a rush. I guess they needed their commission.