New build incentives subject to "completion by end of June" - what's our risk?

hulahoopdude

FTB couple, and we reserved a new build with Persimmon. Aiming for completion before 30 June. Upon viewing, the house appears complete, just needs turf.

The deal:

• Purchase price: £270,000 (reduced from £280k with a £10,000 discount)
  • conditional on exchange by 23rd June 2026
• 5% deposit contribution from Persimmon: £13,500
  • conditional on legal completion by the end of June 2026

Our deposit: £27,000 (10%). With Persimmon's £13,500 contribution = £40,500 total deposit, 85% LTV, mortgage of £229,500.

Our concern: We worried that if we exchange contracts but then completion slips past 30 June for any reason, we'd lose the £13,500 contribution but still be contractually bound to buy, leaving us with a bigger mortgage than we'd budgeted for at worst LTV (90% so much higher interest rate). We've calculated it to be around £200 more expensive per month. This sounds risky.

Where we are now:

• Reservation paid (£500)
• Using the recommended solicitor.
• Estimated build date: between 1st and 30th of June.
• Sales advisor's email says incentives apply "subject to completion by end of June" and they reserve the right to withdraw "for any reason" if we can't complete

Solicitor's verbal reassurance: He's said he won't let us exchange unless completion is realistically achievable, and that Persimmon-caused delays (build, NHBC inspection, materials, labour) after exchange wouldn't void the incentives - only buyer-caused delays would expose us.

Questions:

1. Is this a normal arrangement for new builds, or are we exposed to more risk than we realise?
2. Are we right to push for the incentives clause wording in the contract to explicitly say delays not caused by us don't void the incentives, or is the solicitor's verbal reassurance enough?
3. Has anyone been through a similar timeline (~6 weeks from reservation to completion) with Persimmon? Realistic or too tight?
4. Any other gotchas with contracts we should be alert to before the exchange?

Many thanks in advance for any advice :)

jackieblack

Has the solicitor confirmed that exchange by 23rd June is realistically achievable?

Everyone I know who is buying property is exasperated with the glacial speed with which solicitors/conveyancers seem to move (but none are not buying new builds)

kingstreet

Is the likely mortgage lender going to cause problems/delays?

hulahoopdude

https://forums.moneysavingexpert.com/discussion/comment/81998436#Comment_81998436

We've gone with Nationwide. The mortgage application was received by Nationwide yesterday, so hopefully that's plenty of time.

whizzywoo

It's pretty normal for new builds to have a 6 or even 4 week deadline for completion.

However usually if they can see that progress is being made they are happy to let that slip by a few weeks. Who are they going to sell it to who could actually complete before you if you are only a couple of weeks off completion? They will ring up and hassle you a lot though.

This is assuming you don't have a house to sell as well? We lost our original new build because our house sale fell through 3 times (don't ask, it was a complete nightmare). We did lose our reservation fee and had to pay our solicitor for the work she had already done on the new build and for the searches.

Your solicitor won't let you exchange if they don't think it's possible to complete.

hulahoopdude

https://forums.moneysavingexpert.com/discussion/comment/81998393#Comment_81998393

I'm going to push them today and ask directly whether 23rd June exchange is realistic. He hasn't said either way yet.

We went with their "recommended" solicitor as we thought that might help speed things up. I might just be paranoid, but I hope that doesn't come back to bite us! Looking forward to actively chasing everything up this week to nudge them along though :p

hulahoopdude

https://forums.moneysavingexpert.com/discussion/comment/81998469#Comment_81998469

Sorry you went through that nightmare with your sale falling through three times!!

No house to sell on our end, thankfully. Interesting about them letting it slip, I'd assumed they'd be more rigid about it, since the 5% deposit is tied to a June completion and they won't have to pay the extra £13,500 if it slips into July after we've exchanged.

Yeah, I do hope he doesn't let us exchange, should that be the case 😅 The one thing nagging me is that we're using Persimmon's recommended solicitor, so I do wonder whether the usual safeguards are quite as strong when there's an existing relationship with the developer. Probably overthinking it though!

whizzywoo

https://forums.moneysavingexpert.com/discussion/comment/81998693#Comment_81998693

Their recommended solicitors are usually quick to get you to completion as far as I understand it. But you are right to think they may not be as thorough as a solicitor you appoint yourself. We used our own solicitor on the house we did eventually buy.

There is still 6 weeks to go so I wouldn't be unduly worried. If it does look like going to July before you exchange and they threaten to withdraw the incentive just threaten to walk away. Do it by email so you have a record. DO NOT under any circumstances trust the spoken word of the sales agent or any other of the builder's employees. They will say absolutely anything to keep you on the hook. Back everything up by email and get written confirmation or email confirmation of anything you have agreed.