New build process

taconite2

Just wondering has anyone been through the new build process?

I've read -

What happens if I have a house to sell?

If you are selling your home and buying a new home, it is your solicitor's responsibility to ensure that both sets of contracts – i.e. the sale of your existing home and the purchase of your new one - are exchanged simultaneously and a suitable moving day agreed. It is not always possible to co-ordinate the sale of your existing property and the completion on your new Bellway Home and if this is the case you may have to consider some form of temporary accommodation until your new Bellway Home is ready. (England only)

How do I reserve a new home?

Your reservation fee reserves your new home and during this reserved period your new home will be withdrawn from sale and it will not be subject to any price increases. We will then ask you to exchange contracts and pay a deposit on exchange which is usually within 28 days of reservation. The reservation fee and deposit are then deducted from the price of your home. (In Scotland, missives must be concluded in 28 days)

So basically I'm looking at rental accommodation so I can get myself off the chain to release funds to buy a new build.

So you walk in and put down a reservation. Mortgage in principle completed etc - Next step is exchange. However at what point do you transfer funds? Baring in mind some of the other properties the exchange is done but you don't move in until the house has been completed - so far it's around 5-7 months.

When do you start paying the mortgage?

In what order do things happen from reservation to moving in?

RelievedSheff

You pay your reservation fee when you reserve the plot. Your deposit is due on exchange of contracts and the balance on completion. 

The time from exchange to completion varies so much you can't get an answer for that one.

You don't start paying the mortgage until the month after the funds are released. That won't be until after completion. 

We bought a new build a few years ago now. We part exchanged our old property against this one. From reservation to moving in was 3.5 weeks but the plot was complete when we reserved it.

Flick85

Btw, you won’t be able to reserve until you are in a proceedable position. This means that if you have a property to sell you will need have a buyer agreed for your property, and if there’s a chain, it will need to be complete (ie no one in the chain still looking for a buyer).

You will also have to have a financial check with the New Homes Mortgage group, but you don’t have to use them to find your mortgage - they just need to confirm to Bellway that you are likely to be able to get a mortgage if you need one.

I’m buying a Bellway property atm. Reserved in February and paid £1k fee, for completion between December and February (some sites are quicker than this, but where I’m buying is popular and they’re releasing houses with about 9 months lead in). In September-ish I will need to pay for any and all options/upgrades that I want, in full.

We haven’t exchanged contracts yet - the management company for the flat I’m selling are super slow - but really hoping to do so in the next month. This is taking me beyond the 1 month I needed to exchange within, but they aren’t putting pressure on yet, in part because they can see the issue is with the management company rather than anything that would make the sale/purchase fall through.

taconite2

RelievedSheff said:

You pay your reservation fee when you reserve the plot. Your deposit is due on exchange of contracts and the balance on completion. 

The time from exchange to completion varies so much you can't get an answer for that one.

You don't start paying the mortgage until the month after the funds are released. That won't be until after completion. 

We bought a new build a few years ago now. We part exchanged our old property against this one. From reservation to moving in was 3.5 weeks but the plot was complete when we reserved it.

Thank you - out of interest how much was your deposit?

Sadly part exchange is becoming rarer and rarer! They know they can get away with it!

taconite2

felicityBD15 said:

Btw, you won’t be able to reserve until you are in a proceedable position. This means that if you have a property to sell you will need have a buyer agreed for your property, and if there’s a chain, it will need to be complete (ie no one in the chain still looking for a buyer).

You will also have to have a financial check with the New Homes Mortgage group, but you don’t have to use them to find your mortgage - they just need to confirm to Bellway that you are likely to be able to get a mortgage if you need one.

I’m buying a Bellway property atm. Reserved in February and paid £1k fee, for completion between December and February (some sites are quicker than this, but where I’m buying is popular and they’re releasing houses with about 9 months lead in). In September-ish I will need to pay for any and all options/upgrades that I want, in full.

We haven’t exchanged contracts yet - the management company for the flat I’m selling are super slow - but really hoping to do so in the next month. This is taking me beyond the 1 month I needed to exchange within, but they aren’t putting pressure on yet, in part because they can see the issue is with the management company rather than anything that would make the sale/purchase fall through.

I've PM'd you - hoping you can take me through how Bellway work!