Part exchange changes

hightimer56

We have agreed to part exchange a property for a new build, agreed the price, secured the plot with an early reservation fee, paid several thousand pounds for upgrades and agreed our mortgage in principle. We are about 5 weeks away from moving in and now the developer is saying they want to increase the new build property price and lower the offer we signed upon for the property we are part exchanging.

Where do we stand in this? I know we haven’t exchanged but we paid the early reservation fee and part exchanged as that secured the plot price as part of the deal. They have done very little in terms of effort to sell our property, no signs have been put up and they only put it on the market in July, despite us reserving at the start of this year.

We are now worried that they are forcing us into a corner and essentially getting a house with all the upgrades back that they can sell at a higher price. The shortfall could be £15-20k.

Any advice would be appreciated.

middleclassbutpoor

Until you are exchanged, neither of you are committed. If you cannot afford or agree the price changes then you should get your money back on the basis that they have changed the agreed figures.

The only other option is to try and renegotiate but if they want to change the deal, the power is with them unfortunately

I suspect you shouldnt have paid for anything other than the reservation fee until you had exchanged...