New build price drop after exchange advice

Slithery

happy35 wrote: »

I also live on the same estate and have just found out that if I add a conservatory etc I have to pay them a fee if work is done before the site is finished. This is the first I have heard about it so will be discussing this with them as I have had a local firm out for a quote, I only found out from a chat with a neighbour who has done improvements and received an invoice of fees out of the blue.

I'm afraid that I don't believe you. This will have been in the paperwork that you and your solicitor agreed to when you purchased.

Flugelhorn wrote: »

if they have exchanged there must be some completion date in the contract?

Nope, not with a new build.

happy35

Slithery wrote: »

I'm afraid that I don't believe you. This will have been in the paperwork that you and your solicitor agreed to when you purchased.

I don’t remember seeing it in there and I did read everything before I signed it, I will check it again tomorrow. I will just put off the work until the end of the year when the site completes

FTBAngst

happy35 wrote: »

Slithery wrote: »

I'm afraid that I don't believe you. This will have been in the paperwork that you and your solicitor agreed to when you purchased.

I don’t remember seeing it in there and I did read everything before I signed it, I will check it again tomorrow. I will just put off the work until the end of the year when the site completes

If it’s not in the contract what grounds would they have for charging you a fee?

goodwithsaving

I appreciate it's coming from a good place, but it's their purchase not yours, I suggest letting them go through this major milestone on their own accord. It isn't your house to pull out of and it isn't your place or decision that they would have a lot left in the bank.

Even if you have gifted a deposit, it is just that - a gift.


I am confused when you say 'I signed it'. Do you have an interest (legal one only) in the property, or is the 'they signed it but I'm his parent so I think I signed it and can call the shots'?

gary83

goodwithsaving wrote: »

I am confused when you say 'I signed it'. Do you have an interest (legal one only) in the property, or is the 'they signed it but I'm his parent so I think I signed it and can call the shots'?

I read it as two seperate issues, the OP also bought a house on the same estate and wasn't aware of restrictive covenants preventing adding a conservatory.

Back to the original issue though the time to negotiate was before exchange. At that point the mortgage provider is happy with the valuation, the seller is happy with the price they're getting for the house and the purchaser is happy with the amount they're paying.

If the latest houses for sale were £20,000 more, rather than £20,000 less would you be expecting your family to be offering the developer to pay the additional £20,000

goodwithsaving

gary83 wrote: »

I read it as two seperate issues, the OP also bought a house on the same estate and wasn't aware of restrictive covenants preventing adding a conservatory.

Thanks Gary83. Apologies OP if I misread.

Thrugelmir

gary83 wrote: »

I read it as two seperate issues, the OP also bought a house on the same estate and wasn't aware of restrictive covenants preventing adding a conservatory.

Restrictive covenents until the developement is complete are as old as the hills.

Sibz

The one a few doors down that's been put up for sale - was it put up for sale by the developer or is it up for sale by people who purchased it from the developer previously?

I'd be surprised if a developer is just going to cut the asking price so dramatically when they've recently been selling for the original price. However if someone has bought and had a dramatic and unexpected change of circumstances leading to a need to sell then they can put it on the market for however much they want to, even then that does not mean it wont sell for more (though new builds automatically become second hand and are originally sold at a premium so all of them lose value to begin with, much like a car).

also, this has no direct effect on the quality of the product they have purchased. If they intend to live there for a good length of time this will make no real difference to them, if they were looking to be selling/moving again in he near future then a new build was never a good idea in that sense

markin

Sibz wrote: »

The one a few doors down that's been put up for sale - was it put up for sale by the developer or is it up for sale by people who purchased it from the developer previously?

I'd be surprised if a developer is just going to cut the asking price so dramatically when they've recently been selling for the original price. However if someone has bought and had a dramatic and unexpected change of circumstances leading to a need to sell then they can put it on the market for however much they want to, even then that does not mean it wont sell for more (though new builds automatically become second hand and are originally sold at a premium so all of them lose value to begin with, much like a car).

also, this has no direct effect on the quality of the product they have purchased. If they intend to live there for a good length of time this will make no real difference to them, if they were looking to be selling/moving again in he near future then a new build was never a good idea in that sense

Help to buy helps push up the price, As soon as its not new its more expensive that a 10 year old house for no real reason.

happy35

Thanks everyone, the price has been dropped by the developer, if it had been a re-sale it wouldn’t be an issue.

The solicitor and financial adviser can’t guarantee there will be no issues with a mortgage extension now the price has dropped, that is the real cause for concern- they are obviously really upset as they were told prices would rise as more houses were released and they have fallen.