First time buyers Mortgage woes

FiddySmith

I can see a lot of concerns about a lack of completion date when we exchanged contracts, this has stressed me also and unsure if it's standard practice when a new build is in the chain?

Below is what our Solicitor advised:

"Unfortunately where a builder is involved I have absolutely no influence over when the chain will complete as this is dictated by when the new build property is signed off by Building Control."

Is this correct? I believe the sellers have a long-stop completion date but it is AFTER our mortgage offer expires  

housebuyer143

FiddySmith said:

housebuyer143 said:

Is there a long stop date in the contract? So if you get to a certain date and the property isn't ready you can pull out penalty free?

If not, then there is no incentive for the seller to move into rented and you can't drop out without losing your deposit and opening yourself up to legal proceedings.

Hey, yes there is a long-stop date. I think like Gambit said in the thread, the only incentive for the seller is that the chain doesn't fall down and they try to sell their house in a few months time for much less.

Cheers

Do you have a long stop date in YOUR contract? If it's not in your contract between you and the seller, you cannot pull out without losing your deposit.
If there is a long stop date in your contract that means when you get to that date, if the house isn't ready you can pull out penalty free. It really depends on what your contract says as to what you can do and what you're going to lose or not. 

FiddySmith

housebuyer143 said:

FiddySmith said:

housebuyer143 said:

Is there a long stop date in the contract? So if you get to a certain date and the property isn't ready you can pull out penalty free?

If not, then there is no incentive for the seller to move into rented and you can't drop out without losing your deposit and opening yourself up to legal proceedings.

Hey, yes there is a long-stop date. I think like Gambit said in the thread, the only incentive for the seller is that the chain doesn't fall down and they try to sell their house in a few months time for much less.

Cheers

Do you have a long stop date in YOUR contract? If it's not in your contract between you and the seller, you cannot pull out without losing your deposit.
If there is a long stop date in your contract that means when you get to that date, if the house isn't ready you can pull out penalty free. It really depends on what your contract says as to what you can do and what you're going to lose or not. 

Just double checked, long stop date is the end of the year in our contract. (Which is after our mortgage offer expires...)

Serve_the_Servants

FiddySmith said:

housebuyer143 said:

FiddySmith said:

housebuyer143 said:

Is there a long stop date in the contract? So if you get to a certain date and the property isn't ready you can pull out penalty free?

If not, then there is no incentive for the seller to move into rented and you can't drop out without losing your deposit and opening yourself up to legal proceedings.

Hey, yes there is a long-stop date. I think like Gambit said in the thread, the only incentive for the seller is that the chain doesn't fall down and they try to sell their house in a few months time for much less.

Cheers

Do you have a long stop date in YOUR contract? If it's not in your contract between you and the seller, you cannot pull out without losing your deposit.
If there is a long stop date in your contract that means when you get to that date, if the house isn't ready you can pull out penalty free. It really depends on what your contract says as to what you can do and what you're going to lose or not. 

Just double checked, long stop date is the end of the year in our contract. (Which is after our mortgage offer expires...)

Sorry to hear you’re in this situation. They should really have explained the implications fully - I’m assuming you didn’t realise this could or would happen. It’s all well and good a solicitor saying that it’s normal practice etc etc, but they should be explicit about the potential consequences. Particularly where first time buyers are involved and your mortgage offer expires before the long stop. 

[Deleted User]

@FiddySmith - you've said your mortgage expiry is December and there's a long stop date of the end of year in your contract, what is the difference in dates with these .e.g. is your mortgage expiry 1st Dec and the long stop date 31st Dec?

Neilos9

FiddySmith said:

I can see a lot of concerns about a lack of completion date when we exchanged contracts, this has stressed me also and unsure if it's standard practice when a new build is in the chain?

Below is what our Solicitor advised:

"Unfortunately where a builder is involved I have absolutely no influence over when the chain will complete as this is dictated by when the new build property is signed off by Building Control."

Is this correct? I believe the sellers have a long-stop completion date but it is AFTER our mortgage offer expires  

So, why did he let you exchange...... - If he has no idea when the house will be ready, and if you can get finance to complete.....
I would be looking to - A - extend offer - B get another offer......

housebuyer143

FiddySmith said:

housebuyer143 said:

FiddySmith said:

housebuyer143 said:

Is there a long stop date in the contract? So if you get to a certain date and the property isn't ready you can pull out penalty free?

If not, then there is no incentive for the seller to move into rented and you can't drop out without losing your deposit and opening yourself up to legal proceedings.

Hey, yes there is a long-stop date. I think like Gambit said in the thread, the only incentive for the seller is that the chain doesn't fall down and they try to sell their house in a few months time for much less.

Cheers

Do you have a long stop date in YOUR contract? If it's not in your contract between you and the seller, you cannot pull out without losing your deposit.
If there is a long stop date in your contract that means when you get to that date, if the house isn't ready you can pull out penalty free. It really depends on what your contract says as to what you can do and what you're going to lose or not. 

Just double checked, long stop date is the end of the year in our contract. (Which is after our mortgage offer expires...)

I would be bringing this up with your solicitor because surely having the long stop date after your mortgage expires is negligent. 

FiddySmith

Deleted_User said:

@FiddySmith - you've said your mortgage expiry is December and there's a long stop date of the end of year in your contract, what is the difference in dates with these .e.g. is your mortgage expiry 1st Dec and the long stop date 31st Dec?

Mortgage expiry mid-Dec and long-stop date 31st Dec. What are you thinking?

housebuyer143 said:

FiddySmith said:

housebuyer143 said:

FiddySmith said:

housebuyer143 said:

Is there a long stop date in the contract? So if you get to a certain date and the property isn't ready you can pull out penalty free?

If not, then there is no incentive for the seller to move into rented and you can't drop out without losing your deposit and opening yourself up to legal proceedings.

Hey, yes there is a long-stop date. I think like Gambit said in the thread, the only incentive for the seller is that the chain doesn't fall down and they try to sell their house in a few months time for much less.

Cheers

Do you have a long stop date in YOUR contract? If it's not in your contract between you and the seller, you cannot pull out without losing your deposit.
If there is a long stop date in your contract that means when you get to that date, if the house isn't ready you can pull out penalty free. It really depends on what your contract says as to what you can do and what you're going to lose or not. 

Just double checked, long stop date is the end of the year in our contract. (Which is after our mortgage offer expires...)

I would be bringing this up with your solicitor because surely having the long stop date after your mortgage expires is negligent. 

Completely agree!

[Deleted User]

FiddySmith said:

Deleted_User said:

@FiddySmith - you've said your mortgage expiry is December and there's a long stop date of the end of year in your contract, what is the difference in dates with these .e.g. is your mortgage expiry 1st Dec and the long stop date 31st Dec?

Mortgage expiry mid-Dec and long-stop date 31st Dec. What are you thinking?

housebuyer143 said:

FiddySmith said:

housebuyer143 said:

FiddySmith said:

housebuyer143 said:

Is there a long stop date in the contract? So if you get to a certain date and the property isn't ready you can pull out penalty free?

If not, then there is no incentive for the seller to move into rented and you can't drop out without losing your deposit and opening yourself up to legal proceedings.

Hey, yes there is a long-stop date. I think like Gambit said in the thread, the only incentive for the seller is that the chain doesn't fall down and they try to sell their house in a few months time for much less.

Cheers

Do you have a long stop date in YOUR contract? If it's not in your contract between you and the seller, you cannot pull out without losing your deposit.
If there is a long stop date in your contract that means when you get to that date, if the house isn't ready you can pull out penalty free. It really depends on what your contract says as to what you can do and what you're going to lose or not. 

Just double checked, long stop date is the end of the year in our contract. (Which is after our mortgage offer expires...)

I would be bringing this up with your solicitor because surely having the long stop date after your mortgage expires is negligent. 

Completely agree!

If it’s only a two week gap I would definitely look at an extension first. First and foremost that would protect your deposit and that’s the biggest issue here.

Once you have that then legally you have everything on your side and you can concentrate on seeing when the house will be ready, or if the vendors will move out etc. But at least if you can get an extension on your mortgage then ultimately you are in a much stronger place and can breathe a little before tackling the next bit.