Solicitors - very quiet right now

Safe'n'Sound

We've searched & searched, found the 'right house', it's a new build home, big developer. We're first time buyers looking to use help to buy and have had all the ticks so far, right up to applying for the mortgage offer (AIP fine), then you know what happened.
The developer has put our exchange date back a month (their fault, otherwise we'd be locked), we've had our broker asking if we want to continue applying (all be it with a new different lender than our AIP one) and nothing from our solicitor. It's the latter of those that I'm wondering about. Are solicitors advising on any way or t'other right now? If they advise one way, are they liable for any major balls up in the future deal? I know the developer won't be on site for a while and that puts the completion date to...??.??.202? I can't walk into the biggest deal of my life without knowing at least what year my house will be built.

Thanks, stay safe...

Thrugelmir

There's no point in starting the legal work (either your solicitor or the developers) until you''ve a mortgage offer on the table. Time costs money. 
Long stop clauses can be written into contracts should the developer not be in a position to complete by x date. 
Little is going to happen until there's some lifting of restrictions which maybe some time away. 

davidmcn

I wouldn't really see much point in progressing an off-plan purchase while we've got no idea when construction is likely to restart (or what, if anything, will have happened to the market by then).

Safe'n'Sound

Thrugelmir said:

There's no point in starting the legal work (either your solicitor or the developers) until you''ve a mortgage offer on the table. Time costs money. 
Long stop clauses can be written into contracts should the developer not be in a position to complete by x date. 
Little is going to happen until there's some lifting of restrictions which maybe some time away. 

So you're implying I should continue with the full mortgage application and see how it goes from there? Apart from the completion date being re-written, can a price devaluation clause be written into the contract? As in, if the valuation drops say 10%, to be accepted by both parties?

davidmcn said:

I wouldn't really see much point in progressing an off-plan purchase while we've got no idea when construction is likely to restart (or what, if anything, will have happened to the market by then).

How do I stand then? I've reserved, started legal searches and also close to mortgage application (close).

SMR710

How are you going to get a mortgage offer when surveyors aren't carrying out valuations?  And at the moment, who knows what will happen so you could find that the bank us wary to carry out a desktop valuation on an off plan property!
You would usually sort the mortgage first by getting an offer and then start legal work as if you cant fund the purchase, it's a waste of everyone's time going through the legal work! 

davidmcn

Safe'n'Sound said:

Thrugelmir said:

There's no point in starting the legal work (either your solicitor or the developers) until you''ve a mortgage offer on the table. Time costs money. 
Long stop clauses can be written into contracts should the developer not be in a position to complete by x date. 
Little is going to happen until there's some lifting of restrictions which maybe some time away. 

can a price devaluation clause be written into the contract? As in, if the valuation drops say 10%, to be accepted by both parties?

In practice, not a chance.

Safe'n'Sound said:

How do I stand then? I've reserved, started legal searches and also close to mortgage application (close).

I would take no further material steps and find some other way of occupying yourself during the lockdown and see what's happening afterwards. Ignore all talk of exchange "deadlines", there's not going to be a queue of other buyers keen to take your place.

70Jenny2184

I'm in a similar position except I have a mortgage offer. I had already decided I wasn't going to exchange on 27th March due to everything that's going on but as it happens I didn't hear from my solicitor or developer in time anyway. House was due to be completed in June but now; who knows.

Be patient. I'm happy to wait as I doubt the house price will go up but possibly could go down.  If the value drops a small amount I will have room to negotiate on extras that I was refused at reservation.  I also want some sort of certainty that the house will be built as there's a risk of a second virus wave and second lockdown.  I'm considering holding out on exchange until the property is nearly ready but we'll see.  The developers need you more than you need them right now so just relax. 

Thrugelmir

Safe'n'Sound said:

Thrugelmir said:

There's no point in starting the legal work (either your solicitor or the developers) until you''ve a mortgage offer on the table. Time costs money. 
Long stop clauses can be written into contracts should the developer not be in a position to complete by x date. 
Little is going to happen until there's some lifting of restrictions which maybe some time away. 

So you're implying I should continue with the full mortgage application and see how it goes from there? Apart from the completion date being re-written, can a price devaluation clause be written into the contract? As in, if the valuation drops say 10%, to be accepted by both parties?

davidmcn said:

I wouldn't really see much point in progressing an off-plan purchase while we've got no idea when construction is likely to restart (or what, if anything, will have happened to the market by then).

How do I stand then? I've reserved, started legal searches and also close to mortgage application (close).

Your solicitor works for the lender not just you. With no mortgage offer you aren't in a position to exchange contracts.