New build buying process - when do we need the fees?

soafloafie

Me and my partner have reserved a new build. We're first time buyers and have all the required fees however we cannot release some (around 30% of our deposit) of it yet due to some being in our lifetime ISAs. At the end of March 2022, we will have had our (separate) accounts for a year and then will be able to use and release the money from the lifetime ISA for a house exchange. I wanted to check before we go forward with everything, as it is expected for the exchange to happen within 28 days of reserving the house, does this mean we won't be successful as we cannot access some of our deposit money yet? We won't be moving in until mid-July. 

Any advice would be gratefully received, thanks.

Thrugelmir

A conversation with the developer may well be the best approach. End of March is some time away. Although 28 days frequently slips it's there to keep the process ticking over. Stops the buyers having a change of heart. 

You need the money for the fees at completion. 

Pow11890

Legal/stamp duty Fees are paid at completion. Deposit at exchange. 

eddddy

soafloafie said:

Me and my partner have reserved a new build. We're first time buyers and have all the required fees however we cannot release some (around 30% of our deposit) of it yet due to some being in our lifetime ISAs. 

What percentage of the house price do you have available without releasing the ISAs?

It's usual to provide 10% on exchange of contracts, but a lot of developers seem to accept 5%.

(If it's less than that, I guess you could ask if they'd accept even less on exchange, with an agreement to top it up in March.)
 

soafloafie

eddddy said:

soafloafie said:

Me and my partner have reserved a new build. We're first time buyers and have all the required fees however we cannot release some (around 30% of our deposit) of it yet due to some being in our lifetime ISAs. 

What percentage of the house price do you have available without releasing the ISAs?

It's usual to provide 10% on exchange of contracts, but a lot of developers seem to accept 5%.

(If it's less than that, I guess you could ask if they'd accept even less on exchange, with an agreement to top it up in March.)
 

We have 10% of the house price readily available. I saw that it was usual to provide 10% on exchange of contracts so I was hoping that would be the case. Thanks for your help - will discuss with the appropriate parties!