New build - Completion date extended beyond reservation expiry date

Natalia66

Hi, 

So me and my partner reserved an off plan new build home a couple of months ago, with the anticipated completion date originally being November 2021. We paid a £500 deposit to reserve it. The sales reservation form states an expiry date of 31st December 2021. 

However, the developer has now got in contact and advised that the anticipated completion date has been extended to March 2022. Does this mean the developer is obliged to provide a new contract with an extended reservation expiry date beyond March 2022, or will this mean we still have to exchange before 31st December but then will just have to wait the extra couple of months until the property is completed? 

We are worried that the developer will pull out after the expiry date and then increase the purchase price and put the property back on the market. Will they be allowed to do this or not given the original completion date on the reservation form is now redundant which is not our fault?

Not sure if anyone else has been in any similar situations with the reservation of a new build.

Thanks 

user1977

We can't see the terms of the reservation form from here, but I'd expect it allows the developers to pull out anyway (as long as they give you the reservation fee back). Nothing's properly binding on either party until you exchange.

TripleH

What does the reservation form say about this scenario? I would be surprised if it doesn't say anything as a delay on a new build is not unusual in any way.

We had an abortive attempt to buy a new build (failed due to leasehold issues).

The developer kept pushing for us to exchange but then kept pushing the deadline for completion back (ended up 5 months after original completion of work when we ended the deal).

We stuck to our guns because we had no incentive to rush exchange as there was no property to complete on but situations vary from party to party in a property purchase.

Natalia66

Thanks, they have now come back and advised the reservation will be extended but advised there will not be a new form to sign, do you think we should get them to give us a new form anyway? Or if we have it in writing from them over email should this be okay? 

slimzoe

we are buying a new build, we reserved and then had a month to exchange. we have built in to our contracts that if completion goes over 6 months from the original date we can either pull out or they will be liable for costs. they have just told us its moving from mid November to end of January due to supply issues with our bi-fold doors.