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What happens to reservation fee on new build?

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We have paid a £500 reservation fee, we also get free conveyancing from the solicitors. The purchase price is £242k (if this helps anyone in explaining to me!).

We have been told this 'comes off the house price', but how exactly does that work? Do we need to apply for less of a mortgage? Do we need to edit Help To Buy Equity loan application?

Do we just get it back in cash at the end?

Another question is would we have to pay the conveyancing and then ultimately it gets reimbursed by knocking 600 off the house price?

Will the solicitors just deal with it all?

Sorry for all the questions!
Thanks in advance.

Comments

  • davidmcn
    davidmcn Posts: 23,596 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    It's just an advance deposit towards the agreed price. 
  • pinkteapot
    pinkteapot Posts: 8,044 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    The purchase price is still £242k. You’ve already paid £500 so still need to pay £241,500. You can make that amount with whatever combination of cash and mortgage you want. You’ve just already handed over some of your deposit. 
  • Slithery
    Slithery Posts: 6,046 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper Photogenic
    Please don't use the developers recommended solicitors, you want someone that's on your side, not the developers.
  • SMR710
    SMR710 Posts: 161 Forumite
    Fourth Anniversary 100 Posts Name Dropper
    Slithery said:
    Please don't use the developers recommended solicitors, you want someone that's on your side, not the developers.
    Exactly as above!!! Do not use them. Use your own.
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