Developer threatening to pull out of sale for slow progress.

MrsYa8

We are first time buyers buying a HTB property. 

We paid the reservation fee and left the rest to our mortgage broker. We are having to use a specialist lender and were declined on our first application. We have now applied for another mortgage and it’s under going under writing. They have requested numerous amounts of documents which we have sent but still no definitive answer. 

The problem we have now is we are progressing so slow that the developer is threatening to re market the property in a weeks time unless we exchange. I don’t know what to do. 

We are a family of 5 and currently homeless due to our land lord selling our rental house. We are lodging with my mum. The house isn’t due to be built until December. 

Any advice on how I can persuade the developer to not re market?

TBG01

Call their bluff.

Even if you can't exchange next week. You're in a much better position to exchange than a new buyer. 

pinkteapot

Yep. There's not a lot you can do as you can't exchange without a mortgage offer. Stress the progress you have made - tell them you've responded to all requests for info for the mortgage quickly and you're doing everything you can. Maybe your broker could ring them and say how confident he is of being able to get you a mortgage. 

Assume your solicitor is also well underway? Again, stress progress made there (if searches are back etc). 

Tell them you do want to exchange ASAP and are doing everything you can to do so. 

Don't panic if they do remarket - as noted above, you're still likely to exchange before any new buyer can. 

TripleH

Agree with above. The builder is quite likely using this as a firework to get what they see as a stalling sale moving.

It is also why it is useful to keep your seller updated if you are having issues. Alot of people assume no noise from one side equals no work going on. Even if it is a case of you waiting for searches etc just a quick note to say that means you are doing as much as you can and the other side is aware any issues are outside your control.

I think it is not a good idea to pass paperwork to brokers and solicitors to let them get on with it without checking in.

bramptonbrew

How long has it been since you reserved? There's a lot of good information mentioned here already. We bought a new build this year on a popular development, we went over the "exchange deadline" but we had kept them updated with a weekly email on what our progress was. In the end the delay was mostly on their end because their solicitors were very busy! 

You're in a better position than a new buyer would be, because you've started the process already. Hope it all works out for you.

BikingBud

MrsYa8 said:

We are a family of 5 and currently homeless due to our land lord selling our rental house. We are lodging with my mum. The house isn’t due to be built until December. 

I would suggest the landlord making you homeless was avoidable if you had come for advice earlier you would likely have received lots advising you to sit tight. But that boat has now gone!