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New build exchange / completion delay - CV
Mark4444
Posts: 29 Forumite
Hello. We are due to exchange on a new build in two weeks with a “current” completion date of week 29. Given what is going on right now I am certain it will be delayed. We are happy to proceed at the moment, however my concern is liability for the 10% exchange deposit - if for some reason our mortgage is pulled / expires due to delay / can’t get a new one etc we are still liable for the 10% and I don’t believe there is away out of this aside from cancelling the purchase now before exchange and just staying where we are. Does anyone have a view or suggestion?
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Comments
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The way out of it is to provide in your contract for a longstop at the very least on the expiry of your mortgage offer - that ought to have been suggested in the best of times anyway? Hope you're not using a "tame" solicitor recommended to you by the developer? I expect you could try expanding on that to include the mortgage offer being pulled for other reasons.0
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Thanks. My guy is great, he won’t allow us to do anything where we are not protected - if we were to be so bold, which we are not, he has said he would walk away from us as customers 😀. We have already proposed a clause to cover us if anything outside our control prevents the purchase (anything but us just changing our mind), but it was rejected. Their solution was more money off the house but that won’t work for us.
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I was due to exchange on my new build this Friday 27th March for a house due to be completed in June. Last week I asked my solicitor to see if the developer will hold my reservation for 3 months so we can review corona circumstances then before I exchange. Regardless of what they say, I wont be signing anything this week with what has been going on and if I lose my reservation so be it. Worst case is I signed and then banks have massive issues and start pulling back mortgage offers with me still liable to pay for the house.
Or I lose my job.
Or house prices crash by June and I end up massively overpaying.
I'm not taking the risk...if this house falls through I'll get another one eventually.0 -
None of us have a crystal ball, but I think that HTB's last year will mean that house prices will not significantly drop.0
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