Vendor buying new build

Beth096

I've found a property I really like, however the estate agent has said that the vendor has found a new build and that completion of that wouldn't be until August so 6 months from now. I'm a FTB living with family so timescale doesn't bother me I'm just worried about the fact that they're buying a new build which will no doubt run over. I've also read that there's a 28 day exchange which is again worrying as I will be stuck waiting months for a property with the potential to loose money.

I was just wondering if anyone had any experience with this type of scenario that could give me a bit of advice. 

gettingtheresometime

Wouldn't the 28 day exchange be applicable for the new build that your seller is buying? Surely you wouldn't exchange until all the searches etc have been completed.

Beth096

gettingtheresometime said:

Wouldn't the 28 day exchange be applicable for the new build that your seller is buying? Surely you wouldn't exchange until all the searches etc have been completed.

That's what I thought however I've read a few old posts on here which say that they also had to exchange within 28 days which is what's got me worried. I may just be reading too much into things.

Seashell517

Beth096 said:

gettingtheresometime said:

Wouldn't the 28 day exchange be applicable for the new build that your seller is buying? Surely you wouldn't exchange until all the searches etc have been completed.

That's what I thought however I've read a few old posts on here which say that they also had to exchange within 28 days which is what's got me worried. I may just be reading too much into things.

Vendor probably needs to have exchanged on the sale of their current house to be able to exchange on the new build, unless they're not using the sale proceeds to fund their purchase... 

Either you have to go along with builder's timescales, or vendor has to break the chain and rent for a bit.

Thrugelmir

Beth096 said:

gettingtheresometime said:

Wouldn't the 28 day exchange be applicable for the new build that your seller is buying? Surely you wouldn't exchange until all the searches etc have been completed.

That's what I thought however I've read a few old posts on here which say that they also had to exchange within 28 days which is what's got me worried. I may just be reading too much into things.

Deadlines are flexible as long as matters are proceeding. Developers just want committed purchasers. From your perspective at least there's no chain involved and you are totally flexible with regards to dates.  Very different scenario to being in a long chain with you at the bottom and living in rented accommodation. 

Noseybear38

Is this a part-exchange? If it is the vendor will have to move to the new build and can’t break the chain. The developer will want a 28 day exchange with you but there will be some leeway. You must get a long stop date agreed which is before your mortgage offer expires so if you exchange soon and the build is delayed you can pull out without losing your deposit. 

I bought a part-exchanged house this year and had to break the chain to avoid losing my sale. We exchanged sale and purchase on same day and moved in with family for what we thought was a few weeks. We ended up completing nearly 6 months later due to COVID. We could have pulled out though as we did reach the long stop date but chose to wait for the house.

if it isn’t a part exchange and the vendor is selling on the open market I’d be wanting them to break the chain as they won’t be able to agree to a long stop date and it is too long a gap that you could risk not being able at to complete and lose your deposit.

javp

It will be part ex if the vendor has already reserved before selling his. The builders will push for contract exchange, but with COVID they will allow a longer period than 28 days as most things are delayed at the moment. The only thing that you have the keep in mind is that August is the "Anticipated legal completion date". Usually they never stick to these and with covid on top expect for delays. They might run over by a month or more due to covid delays and rules of only one trades team been able to work in the property at one given time.

javp

You could ask the vendor if they are prepared to go in the temporary accommodation if the August deadline is not hit. We are in the middle of buying a new build as well and we have told our buyer that they can have the house on the 31st of March regarless of whether our house is completed or not.