Advice on delayed new build

dhp82

Good morning everyone,

New poster here so please bare with me!

From doing some digging on the net, I don't believe there's a lot that I can do in my current situation but if anyone has any advice for the following, it would be greatly appreciated.

In February this year, myself and my partner applied for a mortgage as we were reserving a new home (£400k) with a well known housebuilder (they shall remain unnamed - for now!) 

With rising rates, and circumstances at home (having 2 children of contrasting ages and needing an additional bedroom) we decided to get the mortgage approval at the end of February as rates were rising but not where they are now (4.3% 5yr fixed) and reserve the property in early March.
We exchanged in April.

In the meantime, our current landlord had in May asked us to vacate the property by August as they were looking to sell our current rental property.

At this point, we were being told of a July completion possibly August - fine. It would be cutting it tight as the mortgage offer expired in August, without any sort of extension from the lender and our landlord needs to sell the property. Very kindly of her, our landlord has agreed to a 1st November vacation of the property due to the circumstances.

Every month subsequently from July, we have been told it will be August, September.... etc 

The reason for the delays we have been told is issues with the roof supplier. We were however advised back in June that this was resolved and that the roof would be on by mid July - it's still half completed as we speak today.

As of now, we are being told completion is looking like it'll now be the end November meaning our extension of the mortgage offer we had approved in February is a long distant memory and we will essentially be without accommodation. I hold no faith whatsoever that even then in November it will be completed. We're nearly 5 months delayed from the original date.

The long stop date is March 2024 - I find this a bit odd considering it doesn't comply with the NHQC guidance;

The period [x] months should be no more than 6 months for houses or 12 months for apartments if the Contract of Sale is exchanged before the roof is completed and the building weatherproof. 

Currently, we now need to apply for a new mortgage, which on current rates and lend size, will be around £450 a month more than when we were approved in February. My concern with this element is that we don't get approved again due to the rising cost, and therefore my 10% deposit I have put down is at risk.

My primary concern however is the fact my rental property needs to be vacated, I'm not sure my landlord can be flexible any further which will mean my family will need to split up to save cost and move in with different family members - very unsettling for our children.

• Feb 23 - Mortgage approval & House reservation (October expiry following final extension)
• Apr 23 -  Exchange completed, July completion advised
  
• May 23 - All on track
• Jun - Aug 23 - Delays 
• Sept 23 - End of November est completion

I know legally you are bound by the longstop date but do you think there's anything in complaining and being offered some kind of goodwill? I don't see how an original completion of July, now November is reasonable.

Many thanks in advance,
D

kingstreet

Perhaps a moot point but how did you get a mortgage approved in February when you didn't reserve until March? Did you use an experienced newbuild broker, as most of us would lean towards a lender with a nine month or longer offer period (eg six months plus six months) ensuring the rate would be preserved in the event of build timetable slippage which is often the case?

dhp82

I think we reserved in February too in line with the offer actually.

Naively, It doesn't appear we did, our broker didn't go through any options like that..... in hindsight we should have, but we were of the understanding of a July finish. October, when it actually fully expires is 4 months on from the original completion so we didn't think there would be such a long delay.

We are with Nationwide and we've been told no extension beyond the 45 day one so that will just run out in due course!

theartfullodger

Just because landlord wants to sell (or has sold) does not end tenancy nor compel tenant to leave  S5 of Thatcher's 1988 Housing Act makes it clear LL needs court and bailiff.

Did he serve any formal notice, if so which sort please?

So salesman lied on completion date?  Who'd guessed.  Apologies but many think this is to be expected, and planned for.

Good luck & best wishes.

dhp82

The landlord issued us a letter to explain the situation, we then negotiated over the phone an extension.

I understand that, but a 5 month delay I feel is excessive. Our offer would have taken us up until October.

 As stated, my primary concern is about the current rental situation which I don't have control over, to an extent. I don't particularly want to go down the route of playing hardball with my current landlord. 

 

kingstreet

dhp82 said:

I think we reserved in February too in line with the offer actually.

Naively, It doesn't appear we did, our broker didn't go through any options like that..... in hindsight we should have, but we were of the understanding of a July finish. October, when it actually fully expires is 4 months on from the original completion so we didn't think there would be such a long delay.

We are with Nationwide and we've been told no extension beyond the 45 day one so that will just run out in due course!

I thought you might say that. HSBC and Nationwide are the "worst" lenders for newbuild delays as they offer little to no extension options. Good luck with your tenancy situation.

BeerSavesMoney

The reason for the delays we have been told is issues with the roof supplier. We were however advised back in June that this was resolved and that the roof would be on by mid July - it's still half completed as we speak today.

OP, I don’t know what others think but if the roof hasn’t even been completed yet does a completion date in November seem likely? What is the build state of the other houses on the site?