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New build delay- going into rental!

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  • hazyjo
    hazyjo Posts: 15,475 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Will your mortgage expire before completion? I'd fix a deal now and set a long stop date (you prob have one already). You'll need a get-out clause if you can't borrow what you need!
    2024 wins: *must start comping again!*
  • sheramber
    sheramber Posts: 22,548 Forumite
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    sheramber said:
    Are these delays likely to be sorted soon or are they open ended i'e. materials not available so no guarantee when they will be?
    To do with utility services not being put in in our part of the road which needs to be done.


    So no guarantee when it would be done.


  • Doorlock21
    Doorlock21 Posts: 166 Forumite
    100 Posts Name Dropper
    hazyjo said:
    Will your mortgage expire before completion? I'd fix a deal now and set a long stop date (you prob have one already). You'll need a get-out clause if you can't borrow what you need!
    Offer expires feb. They are saying expected December completion. But we don’t want a long stop clause as means we may have to get an extension to our offer which we don’t want to do as it was a nightmare first time round!

    what do you think?
  • Tiglet2
    Tiglet2 Posts: 2,668 Forumite
    Seventh Anniversary 1,000 Posts Photogenic Name Dropper
    hazyjo said:
    Will your mortgage expire before completion? I'd fix a deal now and set a long stop date (you prob have one already). You'll need a get-out clause if you can't borrow what you need!
    Offer expires feb. They are saying expected December completion. But we don’t want a long stop clause as means we may have to get an extension to our offer which we don’t want to do as it was a nightmare first time round!

    what do you think?

    If your offer expires in February, then it won't expire if the expected date of December is when you move in.  I know developers can move expected dates which can be a pain, but bear in mind the two buyers in the chain.  Will they be prepared to wait an unknown extended length of time?

    Your offer expires in February whether or not you exchange with a long stop date or remain in your current house until you can move straight in.  So you will need to think about an extension or new mortgage product, if the utilities are still not connected at that time.

    The developer will be aware of your mortgage expiry but won't be able to 'promise' anything if they are waiting on someone else.
  • Doorlock21
    Doorlock21 Posts: 166 Forumite
    100 Posts Name Dropper
    Tiglet2 said:
    hazyjo said:
    Will your mortgage expire before completion? I'd fix a deal now and set a long stop date (you prob have one already). You'll need a get-out clause if you can't borrow what you need!
    Offer expires feb. They are saying expected December completion. But we don’t want a long stop clause as means we may have to get an extension to our offer which we don’t want to do as it was a nightmare first time round!

    what do you think?

    If your offer expires in February, then it won't expire if the expected date of December is when you move in.  I know developers can move expected dates which can be a pain, but bear in mind the two buyers in the chain.  Will they be prepared to wait an unknown extended length of time?

    Your offer expires in February whether or not you exchange with a long stop date or remain in your current house until you can move straight in.  So you will need to think about an extension or new mortgage product, if the utilities are still not connected at that time.

    The developer will be aware of your mortgage expiry but won't be able to 'promise' anything if they are waiting on someone else.
    Hiya,

    So either way, we would have to complete on this house we are in in November due to thei expires. 

    We are prepared to stay with family or something until December, but no longer if it goes over bechase our searches will expire and so will our mortgage offer and if it goes out the window we are left without either house.

    we also don’t believe the delays they are telling us, as we live a few doors down the house we we are in and what they are saying is not true.
  • user1977
    user1977 Posts: 17,840 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    Tiglet2 said:
    hazyjo said:
    Will your mortgage expire before completion? I'd fix a deal now and set a long stop date (you prob have one already). You'll need a get-out clause if you can't borrow what you need!
    Offer expires feb. They are saying expected December completion. But we don’t want a long stop clause as means we may have to get an extension to our offer which we don’t want to do as it was a nightmare first time round!

    what do you think?

    If your offer expires in February, then it won't expire if the expected date of December is when you move in.  I know developers can move expected dates which can be a pain, but bear in mind the two buyers in the chain.  Will they be prepared to wait an unknown extended length of time?

    Your offer expires in February whether or not you exchange with a long stop date or remain in your current house until you can move straight in.  So you will need to think about an extension or new mortgage product, if the utilities are still not connected at that time.

    The developer will be aware of your mortgage expiry but won't be able to 'promise' anything if they are waiting on someone else.
    we also don’t believe the delays they are telling us, as we live a few doors down the house we we are in and what they are saying is not true.
    What do you mean? Why would they be deliberately delaying completing the sale to you?
  • Doorlock21
    Doorlock21 Posts: 166 Forumite
    100 Posts Name Dropper
    user1977 said:
    Tiglet2 said:
    hazyjo said:
    Will your mortgage expire before completion? I'd fix a deal now and set a long stop date (you prob have one already). You'll need a get-out clause if you can't borrow what you need!
    Offer expires feb. They are saying expected December completion. But we don’t want a long stop clause as means we may have to get an extension to our offer which we don’t want to do as it was a nightmare first time round!

    what do you think?

    If your offer expires in February, then it won't expire if the expected date of December is when you move in.  I know developers can move expected dates which can be a pain, but bear in mind the two buyers in the chain.  Will they be prepared to wait an unknown extended length of time?

    Your offer expires in February whether or not you exchange with a long stop date or remain in your current house until you can move straight in.  So you will need to think about an extension or new mortgage product, if the utilities are still not connected at that time.

    The developer will be aware of your mortgage expiry but won't be able to 'promise' anything if they are waiting on someone else.
    we also don’t believe the delays they are telling us, as we live a few doors down the house we we are in and what they are saying is not true.
    What do you mean? Why would they be deliberately delaying completing the sale to you?
    This is what we don’t understand?

    The house is all built, but inside not done. No way was the house going to be ready to complete this month. We are about to exchange but was waiting for our mortgage offer. As soon as the offer came in 2 days ago- they called an hour later saying oh we are delayed now and we only found out.

    no way would they have just found out, the house is no where near ready for when it should have been done 
  • user1977
    user1977 Posts: 17,840 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    user1977 said:
    Tiglet2 said:
    hazyjo said:
    Will your mortgage expire before completion? I'd fix a deal now and set a long stop date (you prob have one already). You'll need a get-out clause if you can't borrow what you need!
    Offer expires feb. They are saying expected December completion. But we don’t want a long stop clause as means we may have to get an extension to our offer which we don’t want to do as it was a nightmare first time round!

    what do you think?

    If your offer expires in February, then it won't expire if the expected date of December is when you move in.  I know developers can move expected dates which can be a pain, but bear in mind the two buyers in the chain.  Will they be prepared to wait an unknown extended length of time?

    Your offer expires in February whether or not you exchange with a long stop date or remain in your current house until you can move straight in.  So you will need to think about an extension or new mortgage product, if the utilities are still not connected at that time.

    The developer will be aware of your mortgage expiry but won't be able to 'promise' anything if they are waiting on someone else.
    we also don’t believe the delays they are telling us, as we live a few doors down the house we we are in and what they are saying is not true.
    What do you mean? Why would they be deliberately delaying completing the sale to you?
    This is what we don’t understand?

    The house is all built, but inside not done. No way was the house going to be ready to complete this month. We are about to exchange but was waiting for our mortgage offer. As soon as the offer came in 2 days ago- they called an hour later saying oh we are delayed now and we only found out.

    no way would they have just found out, the house is no where near ready for when it should have been done 
    But if they know they also have delays in getting the utilities connected up, why should they rush to complete the rest of the build?
  • Tiglet2
    Tiglet2 Posts: 2,668 Forumite
    Seventh Anniversary 1,000 Posts Photogenic Name Dropper
    edited 18 August 2022 at 10:01AM



    So either way, we would have to complete on this house we are in in November due to thei expires. 

    We are prepared to stay with family or something until December, but no longer if it goes over bechase our searches will expire and so will our mortgage offer and if it goes out the window we are left without either house.

    we also don’t believe the delays they are telling us, as we live a few doors down the house we we are in and what they are saying is not true.

    If you exchange with completion on notice (i.e. a long stop date), there will be a date in the contract that the developer has to complete by otherwise you can walk away from the purchase without penalty.  The developer will give 10 days notice to complete.  What you/they can't do is exchange with a fixed completion date because the property is not structurally complete at this time.  If you don't exchange because there is no fixed completion date, the developer could withdraw the sale to you.

    Why are you saying you have to complete in November, because you still have 3 months on your mortgage offer then?  You can complete a day before your offer expires if you need to, so I'm not sure why you think you have to complete in November/December.  Your main issue is whether the buyers of your current property and their buyers are willing to also exchange with no fixed completion date and are happy to wait until your purchase is ready in December, January or February.

    Buying a new build when you are in a chain is not easy if the new build property is not structurally complete, which is why vendors will often complete on their sale so the chain below them can proceed and the vendor moves into a rental/holiday home/airbnb until the new build is ready.  If the vendor is not prepared to do that, then it's more likely that things could fall apart.
  • Tiglet2 said:



    So either way, we would have to complete on this house we are in in November due to thei expires. 

    We are prepared to stay with family or something until December, but no longer if it goes over bechase our searches will expire and so will our mortgage offer and if it goes out the window we are left without either house.

    we also don’t believe the delays they are telling us, as we live a few doors down the house we we are in and what they are saying is not true.

    If you exchange with completion on notice (i.e. a long stop date), there will be a date in the contract that the developer has to complete by otherwise you can walk away from the purchase without penalty.  The developer will give 10 days notice to complete.  What you/they can't do is exchange with a fixed completion date because the property is not structurally complete at this time.  If you don't exchange because there is no fixed completion date, the developer could withdraw the sale to you.

    Why are you saying you have to complete in November, because you still have 3 months on your mortgage offer then?  You can complete a day before your offer expires if you need to, so I'm not sure why you think you have to complete in November/December.  Your main issue is whether the buyers of your current property and their buyers are willing to also exchange with no fixed completion date and are happy to wait until your purchase is ready in December, January or February.

    Buying a new build when you are in a chain is not easy if the new build property is not structurally complete, which is why vendors will often complete on their sale so the chain below them can proceed and the vendor moves into a rental/holiday home/airbnb until the new build is ready.  If the vendor is not prepared to do that, then it's more likely that things could fall apart.
    Our buyers offer expires in November, not ours. So we would need to complete on our house before then if we wanted ti end the chain. 

    They have said they want to put a long stop date of 2 months in.
    Our offer expires in February. So our worry is, we go into rental. They may have to go over the long stop date, our offer will expire and may not extend and then we are at a loss of the house and living in rental.
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