Negotiating on a new build after developer revised plans

SpacePumpkin

I'm in the process of buying a new build, almost secured a mortgage and partway through with solicitors. Recently the developer of the plot notified me to say that their building hasn't quite followed the original plans that I signed and the consequence is that I lose out on "half of a parking space". 

I'm required to sign these revised plans and have not done so yet, but I'm not happy with this. I knew going in that the plot was going to be smaller than other plots on the road but the sacrifice was just a bit of garden space. Now it turns out that I'm getting the same size garden as everyone else but less parking space (and lets be honest, losing 0.5 parking spaces is the same as losing 1 parking space). The garden space is whatever, but I'm losing utility with that parking space.

To add insult to injury, other plots on the road (same spec as mine but with the full size garden and two parking spaces) are selling for 5k less than what I'm paying. 

My question is, what really are my options here? I want to negotiate a lower price (at the very least I shouldn't be paying more for less) but knowing that resale valuable will be impacted too I feel I should be paying even less. Alternatively I'm open to moving plots or failing all of that cancelling outright. 

Since I'm already part way into paying legal fees to various parties, I will lose out on some money if I outright cancel. Not sure if the same goes for moving plots. How much could I expect to negotiate down?

Albermarle

Some questions:
What kind of price are we talking about?
Is this a reduction from 2 spaces to 1.5 spaces?
What is the reason given, as it only seems that the overall space is the same as the garden will be bigger than expected?
Regarding the fact that the other houses are selling for £5K less. Is that do you think because the market has weakened a bit in the meantime.

Overall I would think they have to negotiate as they are trying to break the original contract.

SpacePumpkin

Albermarle said:

Some questions:
What kind of price are we talking about?
Is this a reduction from 2 spaces to 1.5 spaces?
What is the reason given, as it only seems that the overall space is the same as the garden will be bigger than expected?
Regarding the fact that the other houses are selling for £5K less. Is that do you think because the market has weakened a bit in the meantime.

Overall I would think they have to negotiate as they are trying to break the original contract.

£245k is the original price. Yeah going from 2 spaces to 1.5 spaces. They admitted it was just a mistake. My plot itself *does* have less space than the other plots (I'm losing some space by being next to a roundabout) but the original plan dealt with that by moving the garage right to the back of the property to give space for 2 parking spaces. I was fine with losing a bit of garden space to keep these parking spaces.

Regarding the lower price, I have no idea, maybe, it seemed quiet when I was viewing originally (but it was over the Christmas period). Either way, seems weird to reduce the price in just a month

ka7e

I would switch to one of the cheaper plots if they come with 2 parking spaces! Also, my daughter has had considerable difficulty selling her property as one of the main complaints was "that it was next to a roundabout". The perception is that there will be more traffic/noise than a property a few plots away from the roundabout, even though it was a small one on a high end development and none of her boundary was actually on the road.

jrawle

Does the local authority have rules about minimum parking requirements for new builds? Many do, and the approved plans probably say each plot has to have two off-road parking spaces, and that they must be maintained as parking spaces. In any case, the builders probably aren't building to the approved plans. Perhaps you should raise this with the council planning department (or use the threat of doing so as extra leverage).

user1977

Albermarle said:

Overall I would think they have to negotiate as they are trying to break the original contract.

Not clear from the OP where they are contractually - if merely a reservation rather than exchanged contracts, I suspect the OP doesn't have much leverage. And even a typical newbuild contract will allow a certain amount of wriggle room for variations.

MeteredOut

user1977 said:

Albermarle said:

Overall I would think they have to negotiate as they are trying to break the original contract.

Not clear from the OP where they are contractually - if merely a reservation rather than exchanged contracts, I suspect the OP doesn't have much leverage. And even a typical newbuild contract will allow a certain amount of wriggle room for variations.

I'd be astounded if losing a parking space (as the OP said, saying they're losing 1/2 a space is a bit disingenuous) would not qualify as a material change meaning the OP could walk away from the contract, or if the contract stipulates such a change can be made, then I believe that clause could be argued as being unfair.

OP, what do you want as the outcome? This house, but at a reduced price, or swap to another one (that are now selling for less)? You need to get that clear in your head before starting the negotiations. 

silvercar

I would throw it back to the developer. Tell them you may not want to buy it with only 1.5 parking spaces as you have 2 cars, ask them what they are proposing 

SpacePumpkin

user1977 said:

Albermarle said:

Overall I would think they have to negotiate as they are trying to break the original contract.

Not clear from the OP where they are contractually - if merely a reservation rather than exchanged contracts, I suspect the OP doesn't have much leverage. And even a typical newbuild contract will allow a certain amount of wriggle room for variations.

Yeah it's only at reservation so far. Not signed the main contract yet. afaik the contract states wiggle room so long as the value of the property is not considerably lowered. Depends how you define considerable at this point. I would expect my best chance at success is to either move physical plots or outright cancel. I'd already made some compromises with the build prior due to how far along in the process the build was. I'd be aiming at £225k (ie £20k off) to be happy with taking a discount

SpacePumpkin

jrawle said:

Does the local authority have rules about minimum parking requirements for new builds? Many do, and the approved plans probably say each plot has to have two off-road parking spaces, and that they must be maintained as parking spaces. In any case, the builders probably aren't building to the approved plans. Perhaps you should raise this with the council planning department (or use the threat of doing so as extra leverage).

Will ask my solicitor to check this (as I'm not sure how to do it myself). Just been combing over the other plots and different type plots on that estate and they ALL have 2 parking spaces (some have dedicated parking areas away from the actual house itself - but even in these cases its still 2 - even the so called "affortdable housing" houses have 2).

RAS

Check the planning application, on line, for free.