New Build Deposit Pickle

Spenc

HI,
i am just about to complete on a new build property with an estimated completion date in September.  This required a 10% deposit to be paid now (around £30k)  but I am  concerned that if the economy goes belly up I could be out of a job within this 6 months window and thus my mortgage offer withdrawn.  From my understanding I would then lose my £30k deposit.  I don't know how anyone who doesn't work in those key roles can be secure about their job, but is there any way to protect the deposit?  I don't think anyone can afford to lose a 10% deposit.

Thanks

[Deleted User]

dont exchange until closer to the time?   Many solicitors are refusing to exchange or complete at the moment anyway

Thrugelmir

Make no decisions until the future becomes clearer. September completion date is now highly unlikely anyway. 

davidmcn

What's the rush to exchange? It's not as if anybody else is likely to be buying just now.

Spenc

i wish that was the case - there is always someone there to buy.  Many people unfortunately are not as risk adverse as I am.  There is no rush on my part it is the builders who want the 10% to secure the purchase and want to complete by end of next week, otherwise they are likely to relist the property.  Its a shame you have to risk so much with new builds that are not complete for 6 months.  

davidmcn

Try not to mix up "exchange" and "complete" - concluding the contract is "exchange", handing over the rest of the price and getting the keys is "completion".

As for your question, I doubt any seller is going to accept a provision in the contract which lets you walk away from the deal if something goes wrong with your employment.

Thrugelmir

Spenc said:

There is no rush on my part it is the builders who want the 10% to secure the purchase and want to complete by end of next week, otherwise they are likely to relist the property.  

Is their sales office and site still open? 

Dreamingandimpatient

This was my predicament.  We pulled out.  House certainly wont be completed now by September (well for us anyway as it hadn't even started being built).  We couldn't and decided not to risk it.  

jaybeetoo

House buying is currently on hold.  You don’t need to do anything at the moment.  The builder will be very keen to hold on to you.  Do not exchange even if you can at the moment.  Once house buying starts up again (it may take months before this happens) then you can decide if you wish to exchange.

Spenc

okay great thanks for all the advise - will just keep them on hold for now and if they cant wait guess I will pull out.  Too high risk at the moment.