Contract exchange on new build house bought off-plan

eblake2809

Hi,

Me and my husband are looking at reserving a new build house with Taylor Wimpey when the plots are released very soon. TW like their buyers to exchange contracts around 28 days after putting down the reservation fee. The house is due to be finished in August 2019.

We are nervous about signing contracts so far in advance of the completion date....Circumstances could change or the values of houses could fluctuate. We know that we need a mortgage offer in place before we exchange, which will require our full deposit.

We are still saving our deposit so wouldn't be able to apply for a mortgage offer until March 2019. We are hoping that there are some buyers that don't fall into the 28 day exchange window and therefore, we may be able to negotiate on this time frame with the builder.

If you've bought a new build off plan, what timelines did you have from reserving the property to exchange and then completion? I'm particularly interested in Taylor Wimpey buyers, but happy to hear from anyone that can share their story.

Thanks very much
Emmaline.

Jane_B

I am a Taylor Wimpey buyer, and you don't have to send over your deposit when you exchange. We exchanged in the 28 days as needed then our solicitor asked for the full deposit funds on completion which was the day before we moved in.

Thrugelmir

eblake2809 wrote: »

We are still saving our deposit so wouldn't be able to apply for a mortgage offer until March 2019. We are hoping that there are some buyers that don't fall into the 28 day exchange window and therefore, we may be able to negotiate on this time frame with the builder.

Then you aren't in a position to exchange contracts. TW aren't going to start work on a property that isn't yet sold. As ties up their working capital, i.e. cash resources. Labour and materials need paying for.

You might even turn around and change your mind. Keep saving. They'll be opportunity enough to purchase a property.

kingstreet

Jane_B wrote: »

I am a Taylor Wimpey buyer, and you don't have to send over your deposit when you exchange. We exchanged in the 28 days as needed then our solicitor asked for the full deposit funds on completion which was the day before we moved in.

This sounds odd.

You pay your deposit, usually 10% (5% for HTB) to your solicitor ahead of exchange of contracts with any further contribution to the purchase monies being made to your solicitor ahead of completion.

If you are selling a property, your buyer's deposit usually passes up the chain becoming a smaller percentage of the higher purchase prices the further it goes. This has to be agreed between solicitors and their clients in advance.