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Buying a new build in a chain

edited 30 November -1 at 12:00AM in House Buying, Renting & Selling
6 replies 623 views
xthrashxthrash Forumite
18 posts
10 Posts
edited 30 November -1 at 12:00AM in House Buying, Renting & Selling
Hi all

My partner and I have been looking at moving from our new build into another new build due to a change in circumstances. We've found a few developments in the locations we'd consider and they seem to be struggling to sell - there are quite a few which have had their prices reduced already.

My main concern is having to be SSTC before we can reserve - we bought our current house as FTBs and a plot that was already built which we preferred. If we could do that again, then great, otherwise it seems to very reliant on luck.

We would be using HTB again, so can't use a developers part exchange scheme (which says 30% increase in value which the houses we're looking at aren't anyway) but can use one of their "assisted" moving packages where they pay fees, etc. But even using these schemes, nothing is reserved or held.

We are looking to port our mortgage due to high ERCs but apparently moving into rented to break the chain would mean paying the ERC and according to our adviser, not many lenders let you have a grace period these days.

Like I say, it seems like all of this just comes down to luck but surely this can't be the case? I see people moving into new builds up and down the country and not everyone is a FTB. So I'm wondering what the best way to proceed is? Do we just get ours up on the market ASAP and hope ones we like currently are still available? Or do we wait until we know one is coming up soon in the next 6 months or so and then hope it's completed on time?

Any advice?
Thanks in advance!

Replies

  • foxy-stoatfoxy-stoat Forumite
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    You will need your house SSTC before you can reserve for the developer to consider you proceedable.

    Luck will place a part but if its a small chain, ie 1 person, and the development isn't selling well then you will be ok.
  • ethankethank Forumite
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    Holiday Haggler I've been Money Tipped!
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    Find a site and ask what they have. If you are not on the market, many will offer an assisted house sale scheme and pay your sale costs, or part exchange (note you cannot Part Exchange and do HTB). Lots of sites have stock houses at the moment due to Brexit situation slowing down the market.
  • AdrianCAdrianC Forumite
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    Is the place you're buying still being built? What's the estimated date for it being ready?
  • xthrashxthrash Forumite
    18 posts
    10 Posts
    AdrianC wrote: »
    Is the place you're buying still being built? What's the estimated date for it being ready?

    We don't know yet - we have our eye on a few different plots at different developments. One will be ready to move in next month apparently, the others have been released and can be reserved. Having looked at the others from the outside, they look ready but apparently not finished inside yet (as we wanted to have a look inside but we were told we can't until the end of the month).

    We don't want to rush to get ours on the market, sell up and then be in a position whereby all of the plots we liked have gone and we have to sit around waiting for a new plot to be released which then may not be ready for a good few months - I don't know what most builders timelines are in terms of when they're released and when they're completed.
  • AdrianCAdrianC Forumite
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    xthrash wrote: »
    We don't know yet - we have our eye on a few different plots at different developments. One will be ready to move in next month apparently, the others have been released and can be reserved. Having looked at the others from the outside, they look ready but apparently not finished inside yet (as we wanted to have a look inside but we were told we can't until the end of the month).

    We don't want to rush to get ours on the market, sell up and then be in a position whereby all of the plots we liked have gone and we have to sit around waiting for a new plot to be released which then may not be ready for a good few months - I don't know what most builders timelines are in terms of when they're released and when they're completed.
    If they're onto internals, then they'll probably be ready by the time the chain's all complete and the legals have progressed.

    Anything that's not yet weathertight, though...
  • HanPopHanPop Forumite
    146 posts
    Third Anniversary 100 Posts
    We were in this position a year ago and I also wondered how people managed. I think most people do not know that you can use the help to buy equity loan even if you are not a first time buyer (well that’s what I encountered) so lots of them part exchange which makes the process much easier. With our house I knew the plot I wanted would be released around April time so we decided to put our house up for sale last February as I didn’t know how quickly we’d sell. We actually sold in 6 days so I went to the developer to ask about the plot I wanted but they actually had another that was built and when we looked at it the plot was really good so we reserved that one. So basically it was luck that someone else’s sale had just fallen through and that the built plot was available. To be honest I’d just get your house up for sale as soon as you can and then go and enquire at the developments you like once you’re SSTC and see what is available at that time.
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