H2B reservation fee - COVID-19 refund?

proformance

Hi guys 

We reserved a Help to Buy property in early March (before the situation had escalated as it did), but we've since been advised by family to reconsider our options. 

We said to the developer we'd like exit the arrangement given the circumstances, and they said no problem but would only return half of the deposit. 

I understand these are the terms, but wondered if any dispensation may apply, given the circumstances? It's not like we WANT to pull out, but we don't feel we have a choice as the fees negotiated for the property no longer align to the projected.

The developer is unwilling to renegotiate. 

Many thanks 

Pro 

MobileSaver

proformance said:

It's not like we WANT to pull out, but we don't feel we have a choice

With all due respect, you DO have a choice and it is you WANTING to pull out... I think you are doing well to get half the deposit back.

k3lvc

proformance said:

Hi guys 

We reserved a Help to Buy property in early March (before the situation had escalated as it did), but we've since been advised by family to reconsider our options. 

We said to the developer we'd like exit the arrangement given the circumstances, and they said no problem but would only return half of the deposit. 

I understand these are the terms, but wondered if any dispensation may apply, given the circumstances? It's not like we WANT to pull out, but we don't feel we have a choice as the fees negotiated for the property no longer align to the projected.

The developer is unwilling to renegotiate. 

Many thanks 

Pro 

Why is your 'family' crystal ball better than anyone else's at the moment ?
Not sure what you mean re the bold part - were you hoping to do this to rent out or as a pure money making exercise ? If so it's likely that you've gambled and lost - particularly as by early March there were fairly clear indications of what was to come.

steampowered

The first thing you should do is find a copy of the contract you signed and read it carefully. Does it allow you to get a refund, and does it have any "get-out" clauses?

Don't just take the word of the developer's sales person!!!

If the developer is correct to say that you are only entitled to get a refund of half of the deposit, they are unlikely to be willing to agree a good will gesture given the tough market conditions.

kingstreet

Call the HTB Agent for help as there are circumstances in which reservation fees have to be refunded in full under HTB rules.

proformance

k3lvc said:

proformance said:

Hi guys 

We reserved a Help to Buy property in early March (before the situation had escalated as it did), but we've since been advised by family to reconsider our options. 

We said to the developer we'd like exit the arrangement given the circumstances, and they said no problem but would only return half of the deposit. 

I understand these are the terms, but wondered if any dispensation may apply, given the circumstances? It's not like we WANT to pull out, but we don't feel we have a choice as the fees negotiated for the property no longer align to the projected.

The developer is unwilling to renegotiate. 

Many thanks 

Pro 

Why is your 'family' crystal ball better than anyone else's at the moment ?
Not sure what you mean re the bold part - were you hoping to do this to rent out or as a pure money making exercise ? If so it's likely that you've gambled and lost - particularly as by early March there were fairly clear indications of what was to come.

Well you're just a bundle of charm aren't you 

Dreamingandimpatient

proformance said:

Hi guys 

We reserved a Help to Buy property in early March (before the situation had escalated as it did), but we've since been advised by family to reconsider our options. 

We said to the developer we'd like exit the arrangement given the circumstances, and they said no problem but would only return half of the deposit. 

I understand these are the terms, but wondered if any dispensation may apply, given the circumstances? It's not like we WANT to pull out, but we don't feel we have a choice as the fees negotiated for the property no longer align to the projected.

The developer is unwilling to renegotiate. 

Many thanks 

Pro 

You are legally backed by the government when using help to buy. Taylor Wimpey told me this when we cancelled our reservation at the end of March. We got our full reservation fee back.  

Chandler85

The problem is, you do WANT to pull out.  There is no one forcing you pull out.  The COVID-19 situation has made you change your mind.  You are probably assuming house prices will go down so you don't want to buy a new build right now because you don't want that risk.

So it is your choice to pull out, read your contract there, it seems pointless that they even make people pay reservations fees if you can decide that you don't want to but it any more and get it the money back.