New build nightmare!

fluffybanana

Hey, 
I really need some advice! So we reserved a new build house back in Feb with Persimmon Homes. Our reservation period "officially" ended on 6.3.20. Due to a couple of delays with securing a mortgage the expiry date came and went, but Persimmon were lenient and allowed us to extend the reservation for a few more weeks. Fast forward to March, lockdown happened, so everyone's reservation was extended anyway due to building delays etc. When lockdown was lifted, we FINALLY got our mortgage offer with Halifax and thought it would be plain sailing from here. House was due to be build complete AUG/SEPT/OCT according to a letter we received in June. 
We are in a property chain with 2 people below us. Our buyers original buyer pulled out during lockdown, and so he had to re-market. Thankfully he sold STC quite quickly. As far as I knew, all transactions were ticking over nicely in the background. I'd sent all my documents back, enquiries from all parties had been answered and I figured we'd be exchanging contracts any day now. 
2 days ago, Persimmon called me and announced we are due to complete on the 28th August (less than 2 weeks from now)! I immediately started chasing up my solicitor to find out where this date has come from and why the sudden urgency - as the last I'd heard, the house wasn't even fully finished yet!! Anyway, he did some digging and found out that because we've had so many delays so far, they are very keen to get us in ASAP (basically, they want their money)! Anyway, in a panic, I've called around my estate agent and our buyer is nowhere near ready to complete!! This has been relayed to Persimmon and they are now threatening to take the house off us!
I just don't know what to do, or where to turn. I have put pressure on my buyer, and he has been awesome in trying to speed up his buyer, but the bottom line is, there isn't a cat in hells chance of all parties being ready by next Friday! I am heartbroken - will they take the house off us if we're delayed by a few more weeks? 
Please help! 

OldMusicGuy

What exactly has happened? Have Persimmon issued the formal "completion certificate"? If this is the case you are potentially in big trouble. But they can only do this if you have exchanged - have you exchanged on both the sale of your place and purchase of the Persimmon place?  Or are you  planning to exchange and complete on the same day?

I will add, please check your reservation agreement. We are buying a new build and ours states "If the Exchange Date is not achieved, we reserve the right to re-offer the property for sale." So if yours says something similar and you haven't exchanged by the specified date, Persimmon can back out of selling to you with no comeback. 

davidmcn

fluffybanana said:

will they take the house off us if we're delayed by a few more weeks?

Probably not, because they'd then have to start from scratch with somebody else, which will take more than a few weeks.

UnderOffer

Is the house actually built and ready? You mention Aug, Sept or Oct before it is fully built. 

fluffybanana

We were planning to exchange and complete on the same day, so no contracts have been exchanged to date. We haven't had official notice of completion by Persimmon - just a random date of 28th August thrown into a casual conversation about upgrades to the property when I called them to chase up our flooring order! 
The house is built and is ready (we actually have our home demo booked in tomorrow). But because the letter said "estimated build completion of Aug/Sept/Oct we liased with our buyer for a "worst case scenario" completion so we wouldn't sell before the new house was ready and potentially find ourselves homeless for a period of time!
We had nothing official to state that we were expected to move in next week at all. Like I said, just a date thrown into casual conversation. When I challenged them about it, they said "you should always prepare for the first month on the estimation letter"! But noone told us this and we've not done this before. 
I'm just so worried now that they'll take the house off us - the reservation agreement does state that they reserve the right to remarket if we don't exchange in time, but i thought given the current situation in the world right now and the fact everything is still on a bit of a go slow they'd be a bit more lenient with us! 

fluffybanana

The problem I believe, is that our buyer's buyer hasn't yet had his searches done on my buyers property so that is where the delay in the chain is coming from. Our solicitor said it should only be a matter of weeks now and providing the searches come back OK (which he anticipates they will) then it should be pretty straight forward from there. But it's just whether Persimmon will hold on for that few more weeks :-/ 
The anxiety of not knowing is driving me insane! I'd rather just be put out of my misery, but no-one at Persimmon will give me a straight answer! I'm almost just expecting I'll wake up one day and it'll say "For Sale" next to our plot :-( 

OldMusicGuy

fluffybanana said:

I'm just so worried now that they'll take the house off us - the reservation agreement does state that they reserve the right to remarket if we don't exchange in time, but i thought given the current situation in the world right now and the fact everything is still on a bit of a go slow they'd be a bit more lenient with us! 

OK, things are a bit clearer. Sadly they can pull out of your sale if you don't exchange and complete by the date they specify, it will be entirely up to them. They may be lenient if they don't have another buyer, but that will change of someone turns up that may look a better bet than you (maybe someone in rented?).

Houses on our development are selling quite steadily, one that sold earlier this year has been put on the market at 8.1% MORE than they paid for it. So it all depends on the conditions on your development. 

All you can do is to speak with Persimmon and try to convince them they should stick with you even if you can't exchange/complete by the 28th. Best of luck..... 

fluffybanana

Thank you for you message - I'm am trying to stay positive! Especially as we've literally packed up our house ready to go and brought new furniture etc specifically for this new build! I don't think I can accept the fact the may take it away from us! Thankfully the sales manager at the site is really fighting our corner with head office (or so she tells us) so I suppose I just keep pushing my buyer and try to get this through as fast as possible and pray they'll wait for us 🤞🏻🤞🏻🤞🏻

Thrugelmir

Surprised that they haven't been pressing you to exchange. Given that the house appears to now to be finished. 

SMR710

I can only imagine how you feel. One thing to be aware of is that if you have paid for upgrades and extras, they will be in place now if its finished and you'll likely owe for them (check the reservation  terms). This means they could advertise it for sale with any upgrades, courtesy of you. This could mean a higher asking price. You also need to check out the terms for re-reservation should you need to if it does go up for sale.
I do hope you get this sorted. Good luck.

pinkteapot

fluffybanana said:

Thank you for you message - I'm am trying to stay positive! Especially as we've literally packed up our house ready to go and brought new furniture etc specifically for this new build! I don't think I can accept the fact the may take it away from us! Thankfully the sales manager at the site is really fighting our corner with head office (or so she tells us) so I suppose I just keep pushing my buyer and try to get this through as fast as possible and pray they'll wait for us 🤞🏻🤞🏻🤞🏻

OP - I'm sure it'll work out as Persimmon will never get another buyer who can complete as fast as you, even if you are delayed a few weeks.

But just a note to anyone else reading - NEVER buy furniture or sign up for any services for a property before exchange of contracts. You've absolutely no guarantee the transaction will go through until exchange.