Buyer might be pulling out and new build reservation meeting next week!

jls85

I accepted an offer on my house around 6 weeks ago. Since then, everything has been running smoothly and we were on track to exchange next week and complete on 20 November. However, the buyer's solicitor got in touch last night to say he is concerned around the parking situation. I was told by the sales advisor when I bought the house (also a new build at that time) that I had an allocated parking space rather than a designated parking space, which she explained to mean the 5 houses in the row were entitled to the use of one space each in our 7 space car park, but the spaces weren't numbered/specifically designated to each house. The other two spaces were then deemed to be visitor spaces and available on a first come, first served basis. When we all moved in, we chatted about this and agreed we'd all use the spaces in the order our houses are lined up, and that's the way things have worked since.

However, my buyer's solicitor got in touch last night to say he believed the house came with a designated space rather than an allocated one and he's not sure whether he wants to go ahead with the sale now due to this. I am now left waiting and hoping that once he has had a chance to think he will progress, but in the meantime my boyfriend and I have been offered a part exchange deal with Taylor Wimpey for his home and we need to accept the offer by tomorrow or they can pull it. 

I don't want to put pressure on my buyer to make a decision too soon as that might annoy him more, but we are only able to reserve the plot as I had a buyer for my home lined up. 

I suppose my question is, if I were to reserve the new build now and then the house sale fell through, would I be able to try to get a new buyer before it is ready in June or would I need to back out? 

eidand

Do what's best for you. If the part exchange deal is good then go for it and don't worry about the buyer. They had their chance.

RelievedSheff

I think in your situation and with the house not being ready until June I would go with the part exchange option.

UnderOffer

eidand said:

Do what's best for you. If the part exchange deal is good then go for it and don't worry about the buyer. They had their chance.

I think the poster has 2 properties to consider, they are selling their own property but part ex the boyfriends property. 

jls85

Sorry I've not explained that very well. The part exchange offer is on my boyfriend's flat, the buyer that might be pulling out is for my own house. 

GDB2222

You're proposing to exchange contracts now for completion in June 2021? You've read all the threads about how *incredibly* risky that is?  Or, have I misunderstood?

Carl2510

GDB2222 said:

You're proposing to exchange Mo contracts now for completion in June 2021? You've read all the threads about how *incredibly* risky that is?  Or, have I misunderstood?

That’s how it works on new builds they usually release plots 6 months before and when you reserve you have to exchange within 28 days, doesn’t always happen but depends on the developer. 

If you don’t need to money from your sale and can still exchange without your property being sold then you can carry on and try sell to someone else it just has to be sold before you complete, and that will be the conditions of your new mortgage lender.

jls85

Thanks guys. 
Turns out the buyer has decided to proceed anyway so crisis averted in that respect. As for it being risky to exchange now for completion in June, I wasn't aware of any big risks with that no. That's how it worked when I bought my last new build and as Carl said, I believe that's the only way to buy a new build? I will do a bit of digging though to find out what you are getting at though.

pinkteapot

jls85 said:

Thanks guys. 
Turns out the buyer has decided to proceed anyway so crisis averted in that respect. As for it being risky to exchange now for completion in June, I wasn't aware of any big risks with that no. That's how it worked when I bought my last new build and as Carl said, I believe that's the only way to buy a new build? I will do a bit of digging though to find out what you are getting at though.

Just make sure you've got a longstop date in the contract that is before your mortgage offer expires. 

davidmcn

jls85 said:

I believe that's the only way to buy a new build?

Not the only way, no. But in practice it's the only way if it's a property which the developers manage to get buyers to sign up to before it's built.

FinallyStoppedLurking

jls85 said:

Thanks guys. 
Turns out the buyer has decided to proceed anyway so crisis averted in that respect. As for it being risky to exchange now for completion in June, I wasn't aware of any big risks with that no. That's how it worked when I bought my last new build and as Carl said, I believe that's the only way to buy a new build? I will do a bit of digging though to find out what you are getting at though.

The big risk is that your mortgage falls through and you are left having to complete on a house you can't afford. You then lose you deposit.