New Build Reserve Question

lamont35

Hi guys,

This might be a silly question but I’m new to this game and only today decided on a potential new build home myself and my partner want to buy.

Basically, this plot has only started to be built and it’s expected to be ready next summer. I’ve been offered the chance to put down an early bird reserve fee for £500 and that would guarantee us a home when they’re ready.

But I think there’s a catch. We would be using help to buy scheme which in Scotland is for a max of 200k. I was told these homes (which haven’t been priced yet) should be under 200k and most likely around 195k but no guarantee.

Would I be right in saying It’s fair for me to insist on a set price if I ask to reserve. Because if it ends up being over 200k we wouldn’t be able to afford anyway and would have wasted months waiting for the home only to be unable to afford it.

Thanks!!

middleclassbutpoor

It doesn't make sense in any other world to pay a deposit for something you don't know the price of.

Personally would only reserve if you can agree the price but not sure if they will agree to that..

csgohan4

you have more to lose reserving without a set price. Is it leasehold or free hold??

davidmcn

csgohan4 wrote: »

Is it leasehold or free hold??

It's in Scotland. We don't do anything as silly as leasehold up here.

Cakeguts

There was a thread on here recently where someone did what you are thinking of doing and when the price was released eventually it was more than they could afford.

middleclassbutpoor

this one https://forums.moneysavingexpert.com/discussion/5892611/new-build-price-release-disaster

lamont35

Thanks for all your info and advice.The plot hasn't been released for sale so I guess it’s understandable the price will not be known. We love the site and the other homes around it so will just need to hope that when the homes are released they’re under 200k. The sales agent was quite confident it would be but the lack of guarantee is what worries me. Hopefully if it was slightly over we could negotiate them down.

scotgal30

Standard practice up here unfortunately, we done the same, and laterly found a different new build with prices released so went for that instead, the first new build we reserved on early was £250 and we of course lost it (we weren’t too sad about £250 as much as we would be £500) the second we reserved on was £500. can you try and negotiate the reservation fee down? It’s an annoying situation as you don’t know how popular it may become and could lose the plot, weigh it up, it won’t be the sales people making up the prices so they really don’t know much.