Buying new build flat- developer asking me to sign waiver ?!

carrotcake68

Hi everyone, 

  Has anyone here ever come across these waiver letters for NHBC? 
  We are due to complete soon and the developer (big name) are getting building sign-off, however we are now told the flat will NOT be connected to district heating until Aug. We recd the following to sign

"I confirm I have been advised and accept the works listed below will not be completed when I take ownership of this home and I confirm I would like you to issue the NHBC Buildmark Confirmation of Cover so that I may legally complete the purchase of this home:  

·       Permanent connection to the District Heating system. Temporarily the District heating supply will be via a Temporary boiler system until the permanent Energy Centre system is live.   

I understand and accept the arrangements to complete these works are as stated below. I also understand that the completion date on my Buildmark insurance certificate will be the date I legally complete the purchase of the home:

 ·       The permanent connection to the District Heating system; will be completed by XXX London, in August 2023.  "

 To me this looks risky, the developer will have no incentive to fix this issue later, will they ? 

user1977

Are you buying with a mortgage? If so, is your lender happy with this? What's your solicitor's advice?

carrotcake68

user1977 said:

Are you buying with a mortgage? If so, is your lender happy with this? What's your solicitor's advice?

yes, mortgage is with Barclays, do I need to let them know about this ? I guess it falls under terms and conditions, letting them know of any changes. 
Sols is taking very long to answer, I think I'm looking for anyone who has gone through similar issue and what they did .... or who knew someone who had this issue, I tried searching and googling and could not find a single example of this situation  

MultiFuelBurner

Apart from this waiver, which your solicitors can advise on whether or not they have come across this before.

I would be concerned about this "temporary boiler" situation and.shikt.not likely to be pushed to its limits what happens if the properties are not connected to the district heating system in August and it reaches winter?

I would be looking at guarantee for this permanent energy centre and penalties payable by the developer if it is late and any costs you incur.

user1977

carrotcake68 said:

user1977 said:

Are you buying with a mortgage? If so, is your lender happy with this? What's your solicitor's advice?

yes, mortgage is with Barclays, do I need to let them know about this ?

Your solicitor will need to let them know anyway. But it's not a specific scenario I've come across before.

GDB2222

Being a bit mercenary, I would be asking what is in this for the OP?

I can see how the developer benefits - they get paid in June, rather than in August, or whenever the district heating gets finished.  That's worth rough 0.5% a month to the developer until the heating is finished. So, it's worth a minimum of 1% of the property price to the developer - possibly much more if there are snags in the heating.

If it were me, I'd be asking for an incentive to sign. 

Ayr_Rage

As an aside, have you researched how much district heating can cost you.

It's not a normal regulated market.

carrotcake68

Ayr_Rage said:

As an aside, have you researched how much district heating can cost you.

It's not a normal regulated market.

yes, we have and regardless of it all, it is worth it compared to renting and I can finally have pets and no more invasive inspections looking into my drawers every 6 months, plus increases of £300-500 each year (with the new London market trends that is, it might slow down). 

MultiFuelBurner

carrotcake68 said:

Ayr_Rage said:

As an aside, have you researched how much district heating can cost you.

It's not a normal regulated market.

yes, we have and regardless of it all, it is worth it compared to renting and I can finally have pets and no more invasive inspections looking into my drawers every 6 months, plus increases of £300-500 each year (with the new London market trends that is, it might slow down). 

The LL was inspecting your drawers every 6 months?

District heating will be fats to rise in cost and slow to fall. 

carrotcake68

MultiFuelBurner said:

carrotcake68 said:

Ayr_Rage said:

As an aside, have you researched how much district heating can cost you.

It's not a normal regulated market.

yes, we have and regardless of it all, it is worth it compared to renting and I can finally have pets and no more invasive inspections looking into my drawers every 6 months, plus increases of £300-500 each year (with the new London market trends that is, it might slow down). 

The LL was inspecting your drawers every 6 months?

District heating will be fats to rise in cost and slow to fall. 

agency sent a third party inventory company to our place every 6 months who took 1 h each time taking photos of every corner and looking inside wardrobe and drawers, yes. 1st time they took photos of our clothing, but told them off the following time however they still took photos inside cupboards and so on. why do you think people are so desperate to buy ? yes, I'm sure district heating is awful but not much better position with Shell right now and rotten window frames allowing cold air in. 

MultiFuelBurner

carrotcake68 said:

MultiFuelBurner said:

carrotcake68 said:

Ayr_Rage said:

As an aside, have you researched how much district heating can cost you.

It's not a normal regulated market.

yes, we have and regardless of it all, it is worth it compared to renting and I can finally have pets and no more invasive inspections looking into my drawers every 6 months, plus increases of £300-500 each year (with the new London market trends that is, it might slow down). 

The LL was inspecting your drawers every 6 months?

District heating will be fats to rise in cost and slow to fall. 

agency sent a third party inventory company to our place every 6 months who took 1 h each time taking photos of every corner and looking inside wardrobe and drawers, yes. 1st time they took photos of our clothing, but told them off the following time however they still took photos inside cupboards and so on. why do you think people are so desperate to buy ? yes, I'm sure district heating is awful but not much better position with Shell right now and rotten window frames allowing cold air in. 

It does sound like you have what I would term a bad LL or bad letting agents. 

Well on behalf of what we deem ourselves to be "good landlords" I apologise that is not what renting a property should be like.

With Shell you are protected by the price cap as a domestic customer. For your heating budget assume your heating will cost double what you pay now and you won't be shocked.