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First time buyers, shared ownership exchange date dilemma

Hi.

My wife and I have begun talks with linden Homes to purchase a 50% share of a beautiful 3 bed home on a development a round the corner.

We have reserved the plot for £500 and have completed the reservation paperwork. Our site agent has informed us that the original date of completion which was summer 2019 has been put back to December 2019.

I have an independent Broker (40 years experience and a good friend) looking into mortgages and is very confident he can get what I need. However, the site agent wants My wife and I to exchange on 29th March 2019. My broker is uneasy about this due to the length of time from exchange to completion, and doesn't want me to fall foul and lose my deposit if circumstance change and mortgage offer cannot be renewed.

Site agent reckons we can get a mortgage offer valid for 9mths with an extension of 3mths if needed. I highly doubt this as my broker has said that it is unlikely to be granted.
My question is therefore, what can my wife a d I do about the exchange date? I don't want to risk my deposit being lost or anything else if we cannot complete the to mortgage not being renewed. Any advise would be greatfully received.
Thanks in advance.

Comments

  • cjv
    cjv Posts: 513 Forumite
    Third Anniversary 100 Posts Name Dropper Newshound!
    edited 9 February 2019 pm28 7:38PM
    There are lenders who offer Mortgages for new builds that are valid for 9 months. I know your broker is your friend, but don't discount speaking to another one if you need to.

    The problem is your completion date could be put back again later than December. You can have your solicitor negotiate a long stop date to protect your deposit.
  • Forgive me for asking, but what do you mean by a long stop date? Trouble is if a mortgage offer expires and the banks lending criteria changes and I can't get a mortgage I will be liable to buy the house in any event. Who knows what will happen in 9 months time! Could die, lose my job or something else.
  • cjv
    cjv Posts: 513 Forumite
    Third Anniversary 100 Posts Name Dropper Newshound!
    edited 9 February 2019 pm28 8:05PM
    rsm4525 wrote: »
    Forgive me for asking, but what do you mean by a long stop date? Trouble is if a mortgage offer expires and the banks lending criteria changes and I can't get a mortgage I will be liable to buy the house in any event. Who knows what will happen in 9 months time! Could die, lose my job or something else.

    As an example my own shared ownership Mortgage offer expires at the end of June, my solicitor has negotiated that if notice to complete is not served by 20th June I would have the option to walk away and not lose my deposit.

    Are you using your own solicitor or the same one as the developer?
  • Ah right, I understand. Thanks. The notice to complete, is that to be served by you to them or them to you? Ideally, looking at the time frames I think exchange needs to be may/June time to keep things near and tidy.
  • Site agent recommend a solicitor and a mortgage broker but I am very dubious about using people that have links with the development itself. What opinion do other have.
  • cjv
    cjv Posts: 513 Forumite
    Third Anniversary 100 Posts Name Dropper Newshound!
    I found a local solicitor experienced in shared ownership, they have been great so far and I feel confident they have my best interests at heart.

    If I was using the sellers solicitor I would find it hard to trust they are doing whats best for me, rather than the developer.
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