New build - sell old house before you can offer?

Waxy666

Hey,
Sorry if this is a completely naive question/post, but I've just been looking at a new build (off plan) which I've slightly fallen in love with.  Checked out all the fleecehold / fakehold issues as a starting point and got comfortable enough with the possible issues to actual consider the property.  But discussing the timeline if we were to offer I'm wondering if I've mis-understood the process.  Seems completely impractical and I can't understand why a developer would make it so difficult to buy one of their houses (they are not cheap and a lot of the estate is 4 / 5 bed - not exactly pitched at a cash buyer / FTB).

From what I've been told:

• Developer won't even take a reservation until my current house is sold STC

• Then 28 days from reservation to conditional exchange (and pay deposit) - condition on mortgage offer being available near completion, I think this is in my favour as deposit returned if it's not.
• Then completion (and balance due) when house is built (possibly Sept 2021 - haven't been told the backstop date!)

On this basis I'm struggling to see how anyone other than a FTB purchases a new build.  As far as I can see they basically only want cash buyers, as I'd have to sell my house (and hope the new build is still available once I've accepted an offer) - then move my family (with young kids) into rented accommodation until (at least) Sept 2021.  Can't imagine any buyer for my house is going to sit back and wait a year to complete on their purchase.

Have I missed something?  Or should I just write off any thought of buying a new build unless I'm willing to move my family into a rental for an extended period (and burn the rent money for the same period)?

JamoLew

Seems to be more and more common I'm afraid
A work colleague is finding the same with Redrow
I think they just dont want to get involved in long and complicated chains and any potential delays.
Some may consider part-ex although that seems to be becoming more uncommon

Crashy_Time

They want to make sure you actually have the money before they fleece you, it`s just good business as far as they are concerned, but as more and more chains collapse hopefully a few of these big developers will also collapse.

GixerKate

I've just bought and moved into a new build after selling my previous property.  It was very stressful!!

I was able to put a reservation on a plot once I had an offer accepted on my house but we didn't exchange in 28 days, the sales agent said it was more of a target than anything binding although we had issues with our chain so it did get very fraught towards the end.

krusty101

Same for us. We could only ‘hold’ not reserve until SSTC and now we’re in a 6 week period to exchange. They have given us more time due to the time things are taken. But the house is meant to be ready early December so it’s not as unrealistic. I think they expect everyone to be doing HTB to be honest and FTB 

eddddy

Some newbuild developers offer 'part-exchange' schemes to get around the problem you describe - but not all developers, and not for every development.

And you might not get an especially good price for your current house.

Slithery

Sell your current property and move into rental, then you'll be in a good position to offer on a new build.

Carl2510

I reserved a plot while I had mine SSTC, and I exchanged while selling mine and it all went through just waiting for it to be built now.

HanPop

I think lots of people part exchange as it is easier. We couldn’t as we were using help to buy. We knew which house type we wanted as I had researched it to death and I knew when the plot I wanted was to be released so put our house on the market 6 weeks before that. We sold straight away so we went to the developer who showed me an already completed plot of the house type that we wanted that had a really big garden (for a new build) so we decided to go and reserve that one. This was with Bellway and they never once pushed the 28 day for exchange thing as long as things are progressing they don’t seem to mind. In the end we exchanged and completed on the same day which I think is unusual for a new build. 

RelievedSheff

We part exchanged our old house against the new build we bought. It was by far the easiest route for us and we got a cracking deal on the house. From reserving the already competed plot to moving in was just 3.5 weeks.

Some developers also offer an assisted sales scheme where they allow you to reserve the plot and help you sell your existing property. 

Doozergirl

RelievedSheff said:

We part exchanged our old house against the new build we bought. It was by far the easiest route for us and we got a cracking deal on the house. From reserving the already competed plot to moving in was just 3.5 weeks.

Some developers also offer an assisted sales scheme where they allow you to reserve the plot and help you sell your existing property. 

This sounds like an absolute dream!  I wish the whole process was simpler in general here.