Property Exchange to Completion

London68164

I have a question regarding post exchange of contracts for a new build property. We recently had a new mortgage offer and completion date is Jan/Feb 21 but are yet to exchange our contracts. Part of me worries that with the figures we are seeing at the moment there potentially could be a second spike of COVID. My partner works in the hospitality industry and is currently on furlough with the hope of returning in October. If there was a second spike and the company was affected further, I think there is a high chance of them being made redundant. Obviously once we have exchanged contracts (which I’m sure is fairly imminent in the new build timeline) we have entered that legally binding agreement with the developer until completion and with a change In circumstances, this mortgage offer could be withdrawn. If that’s the case we could lose our deposit which would ultimately be our life savings. I was wondering whether anyone had any advice about this and how we can manage the situation as best as possible?
I wonder how much we can delay the exchange of contracts so that we know what happens when the furlough scheme ends and can see whether there will be a further spike in COVID and any fallout from this?
I also heard some people talking about rider clauses entered into the contracts so that should the sale be affected by something COVID related then we can leave the sale and be refunded our deposit. Again is this something that is fairly common place and should I be asking out solicitors to ensure this is included in the paperwork?
Thanks for your help!

GDB2222

There’s been a lot about this on the house buying board.  You should ask again there.  The answer is that many transactions now are simultaneous exchange and completion. Or there needs to be a get out clause, as you outlined. Your solicitor should advise you, as long as you’re not using a solicitor recommended by the builder.

The idea that you would enter a binding contract now for a completion some time in 2021, at the builder's convenience, is simply awful. Don’t do it! It’s better to walk away and lose the £500 or whatever holding deposit you have put down. Between Covid and Brexit there is a serious risk of your circumstances changing.