Building work has stopped 2 weeks before completion and supposedly banks now asking for 40% deposit.

Da_Crojanz

So the housebuilders of our new build supposedly stopped work today. Our sales office is not open Tue / Wed so no word from them.

We were due to complete on the new build April 9th. Missives (Scottish word for the contract) were signed weeks ago, the mortgage offer from Barclays was signed and confirmed back in early February, valid until July 25th. I've just read on this forum that Barclays now require a 40% deposit for all new applicants. Will they rescind our mortgage offer and demand the 40% deposit? What happens if this crisis drags on past 25th July? Our mortgage adviser said that as it's a new build and extenuating circumstances they will likely extend the offer until we can complete, but these are changed times.

Our initial deposit was 10% and our loan-to-income ration was less than 2 (combined salary of £90k, loan of £155k). We've already paid money towards upgrading the interior and £2k of the deposit to the housebuilder.

bigmortgage

Da_Crojanz said:

So the housebuilders of our new build supposedly stopped work today. Our sales office is not open Tue / Wed so no word from them.

We were due to complete on the new build April 9th. Missives (Scottish word for the contract) were signed weeks ago, the mortgage offer from Barclays was signed and confirmed back in early February, valid until July 25th. I've just read on this forum that Barclays now require a 40% deposit for all new applicants. Will they rescind our mortgage offer and demand the 40% deposit? What happens if this crisis drags on past 25th July? Our mortgage adviser said that as it's a new build and extenuating circumstances they will likely extend the offer until we can complete, but these are changed times.

Our initial deposit was 10% and our loan-to-income ration was less than 2 (combined salary of £90k, loan of £155k). We've already paid money towards upgrading the interior and £2k of the deposit to the housebuilder.

They can't rescind their offer. However, if the building is not finished and you have not completed by July 25th than things could get complicated around who's liable depending on the wording of your missives if the mortgage is not re-offered.

Da_Crojanz

bigmortgage said:

Da_Crojanz said:

So the housebuilders of our new build supposedly stopped work today. Our sales office is not open Tue / Wed so no word from them.

We were due to complete on the new build April 9th. Missives (Scottish word for the contract) were signed weeks ago, the mortgage offer from Barclays was signed and confirmed back in early February, valid until July 25th. I've just read on this forum that Barclays now require a 40% deposit for all new applicants. Will they rescind our mortgage offer and demand the 40% deposit? What happens if this crisis drags on past 25th July? Our mortgage adviser said that as it's a new build and extenuating circumstances they will likely extend the offer until we can complete, but these are changed times.

Our initial deposit was 10% and our loan-to-income ration was less than 2 (combined salary of £90k, loan of £155k). We've already paid money towards upgrading the interior and £2k of the deposit to the housebuilder.

They can't rescind their offer. However, if the building is not finished and you have not completed by July 25th than things could get complicated around who's liable depending on the wording of your missives if the mortgage is not re-offered.

That's my fear. I'm hoping against hope that there's some way through it. If the housebuilder demands we still buy the property then we'd have to bankrupt ourselves and default as we don't have £173k in cash.
I imagine there are thousands of people in our situation so hopefully something is done industry-wide to fix this.

Crashy_Time

Da_Crojanz said:

So the housebuilders of our new build supposedly stopped work today. Our sales office is not open Tue / Wed so no word from them.

We were due to complete on the new build April 9th. Missives (Scottish word for the contract) were signed weeks ago, the mortgage offer from Barclays was signed and confirmed back in early February, valid until July 25th. I've just read on this forum that Barclays now require a 40% deposit for all new applicants. Will they rescind our mortgage offer and demand the 40% deposit? What happens if this crisis drags on past 25th July? Our mortgage adviser said that as it's a new build and extenuating circumstances they will likely extend the offer until we can complete, but these are changed times.

Our initial deposit was 10% and our loan-to-income ration was less than 2 (combined salary of £90k, loan of £155k). We've already paid money towards upgrading the interior and £2k of the deposit to the housebuilder.

More likely that your original deal will just be put on hold IMO, the government want as little disruption to the economy as possible. On a slightly different note Edinburgh libraries have closed all branches, cancelled all book returns and waived fines until the end of July, plus added 5 renewals to each account, council tax communications are saying that they won`t be pursuing late payments until after the summer and are open to communication about inability to pay, this implies to me that local government expect lock-down/disruption to continue well into the year.

davidmcn

Da_Crojanz said:

bigmortgage said:

Da_Crojanz said:

So the housebuilders of our new build supposedly stopped work today. Our sales office is not open Tue / Wed so no word from them.

We were due to complete on the new build April 9th. Missives (Scottish word for the contract) were signed weeks ago, the mortgage offer from Barclays was signed and confirmed back in early February, valid until July 25th. I've just read on this forum that Barclays now require a 40% deposit for all new applicants. Will they rescind our mortgage offer and demand the 40% deposit? What happens if this crisis drags on past 25th July? Our mortgage adviser said that as it's a new build and extenuating circumstances they will likely extend the offer until we can complete, but these are changed times.

Our initial deposit was 10% and our loan-to-income ration was less than 2 (combined salary of £90k, loan of £155k). We've already paid money towards upgrading the interior and £2k of the deposit to the housebuilder.

They can't rescind their offer. However, if the building is not finished and you have not completed by July 25th than things could get complicated around who's liable depending on the wording of your missives if the mortgage is not re-offered.

That's my fear. I'm hoping against hope that there's some way through it. If the housebuilder demands we still buy the property then we'd have to bankrupt ourselves and default as we don't have £173k in cash.
I imagine there are thousands of people in our situation so hopefully something is done industry-wide to fix this.

Did nobody suggest a longstop in the missives to match the expiry of your mortgage offer? I hope you're not using a "tame" solicitor recommended to you by the developer?

Da_Crojanz

davidmcn said:

Da_Crojanz said:

bigmortgage said:

Da_Crojanz said:

So the housebuilders of our new build supposedly stopped work today. Our sales office is not open Tue / Wed so no word from them.

We were due to complete on the new build April 9th. Missives (Scottish word for the contract) were signed weeks ago, the mortgage offer from Barclays was signed and confirmed back in early February, valid until July 25th. I've just read on this forum that Barclays now require a 40% deposit for all new applicants. Will they rescind our mortgage offer and demand the 40% deposit? What happens if this crisis drags on past 25th July? Our mortgage adviser said that as it's a new build and extenuating circumstances they will likely extend the offer until we can complete, but these are changed times.

Our initial deposit was 10% and our loan-to-income ration was less than 2 (combined salary of £90k, loan of £155k). We've already paid money towards upgrading the interior and £2k of the deposit to the housebuilder.

They can't rescind their offer. However, if the building is not finished and you have not completed by July 25th than things could get complicated around who's liable depending on the wording of your missives if the mortgage is not re-offered.

That's my fear. I'm hoping against hope that there's some way through it. If the housebuilder demands we still buy the property then we'd have to bankrupt ourselves and default as we don't have £173k in cash.
I imagine there are thousands of people in our situation so hopefully something is done industry-wide to fix this.

Did nobody suggest a longstop in the missives to match the expiry of your mortgage offer? I hope you're not using a "tame" solicitor recommended to you by the developer?

No we’re using our own solicitor who has nothing to do with the developer.

No longstop was suggested but the house is almost complete. There’s nothing the developer can do given government guidelines.

AdrianC

The missives will include a long-stop date. If the property is not complete and ready to move into by than - whatever the reason - the contract is void.

davidmcn

AdrianC said:

The missives will include a long-stop date.

I wouldn't expect them to unless the buyer negotiates one.

Thrugelmir

Da_Crojanz said:

davidmcn said:

Da_Crojanz said:

bigmortgage said:

Da_Crojanz said:

So the housebuilders of our new build supposedly stopped work today. Our sales office is not open Tue / Wed so no word from them.

We were due to complete on the new build April 9th. Missives (Scottish word for the contract) were signed weeks ago, the mortgage offer from Barclays was signed and confirmed back in early February, valid until July 25th. I've just read on this forum that Barclays now require a 40% deposit for all new applicants. Will they rescind our mortgage offer and demand the 40% deposit? What happens if this crisis drags on past 25th July? Our mortgage adviser said that as it's a new build and extenuating circumstances they will likely extend the offer until we can complete, but these are changed times.

Our initial deposit was 10% and our loan-to-income ration was less than 2 (combined salary of £90k, loan of £155k). We've already paid money towards upgrading the interior and £2k of the deposit to the housebuilder.

They can't rescind their offer. However, if the building is not finished and you have not completed by July 25th than things could get complicated around who's liable depending on the wording of your missives if the mortgage is not re-offered.

That's my fear. I'm hoping against hope that there's some way through it. If the housebuilder demands we still buy the property then we'd have to bankrupt ourselves and default as we don't have £173k in cash.
I imagine there are thousands of people in our situation so hopefully something is done industry-wide to fix this.

Did nobody suggest a longstop in the missives to match the expiry of your mortgage offer? I hope you're not using a "tame" solicitor recommended to you by the developer?

No we’re using our own solicitor who has nothing to do with the developer.

No longstop was suggested but the house is almost complete. There’s nothing the developer can do given government guidelines.

Developers will be pragmatic. Not likely to sell the property to anybody else. Highly likely that work has stopped or will do very shortly anyway. Life as we know it is going on hold. 

Crashy_Time

Thrugelmir said:

Da_Crojanz said:

davidmcn said:

Da_Crojanz said:

bigmortgage said:

Da_Crojanz said:

So the housebuilders of our new build supposedly stopped work today. Our sales office is not open Tue / Wed so no word from them.

We were due to complete on the new build April 9th. Missives (Scottish word for the contract) were signed weeks ago, the mortgage offer from Barclays was signed and confirmed back in early February, valid until July 25th. I've just read on this forum that Barclays now require a 40% deposit for all new applicants. Will they rescind our mortgage offer and demand the 40% deposit? What happens if this crisis drags on past 25th July? Our mortgage adviser said that as it's a new build and extenuating circumstances they will likely extend the offer until we can complete, but these are changed times.

Our initial deposit was 10% and our loan-to-income ration was less than 2 (combined salary of £90k, loan of £155k). We've already paid money towards upgrading the interior and £2k of the deposit to the housebuilder.

They can't rescind their offer. However, if the building is not finished and you have not completed by July 25th than things could get complicated around who's liable depending on the wording of your missives if the mortgage is not re-offered.

That's my fear. I'm hoping against hope that there's some way through it. If the housebuilder demands we still buy the property then we'd have to bankrupt ourselves and default as we don't have £173k in cash.
I imagine there are thousands of people in our situation so hopefully something is done industry-wide to fix this.

Did nobody suggest a longstop in the missives to match the expiry of your mortgage offer? I hope you're not using a "tame" solicitor recommended to you by the developer?

No we’re using our own solicitor who has nothing to do with the developer.

No longstop was suggested but the house is almost complete. There’s nothing the developer can do given government guidelines.

Developers will be pragmatic. Not likely to sell the property to anybody else. Highly likely that work has stopped or will do very shortly anyway. Life as we know it is going on hold. 

In this climate highly unlikely.