New Build, need to sell before completion!

JC180

So, new to the forum and have a doozy of a problem. Me and y partner (unmarried) but both signed for 50% of the property. I have stumped up the full deposit with the assistance of the HTB scheme.

We don’t complete until March next year 2019 but we have exchanged. My Mrs is now leaving me, I can just about afford the mortgage on my own but ideally want a smaller, less expensive place. What can I do!? 330k on my own is too much and I’m certain my mortgage company will pull their offer now we have split.

middleclassbutpoor

So you have paid 5% deposit and exchanged.

Pull out - lose your 5% and hope there are not too many other costs incurred by the builder.

look to purchase on your own.

eddddy

middleclassbutpoor wrote: »

So you have paid 5% deposit and exchanged.

Pull out - lose your 5% and hope there are not too many other costs incurred by the builder.

The OP would need to check their contract.

Often when a 5% deposit is paid, the forfeit for failing to complete is still 10%. i.e. The seller will keep the 5% deposit, and then sue for the OP (and/or their partner) for the other 5%.

And, for example, if property prices tumble, and the house can only be sold for, say, £280k - the developer will probably sue the OP (and/or the OP's partner) to cover the £50k loss.

eddddy

Going back to the original question:

JC180 wrote: »

New Build, need to sell before completion!

In theory, you may be able to assign the contract (unless there is a clause in the contract saying it cannot be assigned). i.e. you give somebody else the right to complete the purchase.

In 'prime central London' people do/did that to make a profit.

But outside central London, you might find it very hard to find somebody who's interested. They wouldn't be able to get a mortgage with an assigned contract. And I guess you might have to pay an investor a big wedge of money as an incentive to "take the property off your hands".

kingstreet

Speak to the HTB Agent.

Developers sign-up to certain conditions when they accept HTB membership and one of them is to release a buyer and return their deposit if they are unable to secure a mortgage.

Given your circumstances, your lender is likely to want to withdraw your offer, especially if your partner no longer wishes to be bound by the terms.