Exchange and completion 7 months gap
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What would happen is that you'd have the right to pull out.
Hmm this is actually a good idea. Just worried between exchange contracts and completion anything can really happen. Just wanted to see how to protect myself. Also no one knows how the banks will react to Brexit. So you think we can put a long stop date for April even though they've told us they will complete in May?0 -
Builders have the upper hand the contract will be very heavy in their favour.
They sort of promise to build you a house that might look like the one in the brochure and might be built by an unknown date in the future, this could be early or later at some point they can demand you complete in a short period of time.
Your solicitor should be explaining all this to you and why a long stop is so important.0 -
getmore4less wrote: »Builders have the upper hand the contract will be very heavy in their favour.
They sort of promise to build you a house that might look like the one in the brochure and might be built by an unknown date in the future, this could be early or later at some point they can demand you complete in a short period of time.
Your solicitor should be explaining all this to you and why a long stop is so important.
Thanks for this but I'm just asking is it normal for them to accept a long stop date before the date they've said it would complete?0 -
Always the case. The longer the gap the more likely it is something will.Hmm this is actually a good idea. Just worried between exchange contracts and completion anything can really happen.
You seemed to have an idea, they will cut back on lending ?Also no one knows how the banks will react to Brexit.So you think we can put a long stop date for April even though they've told us they will complete in May?
I dont. I suspect they will tell you to take a long walk off a short pier.
If all this is a worry to you, and i can see why, you shouldn't be looking at anything other than houses you can move into if not right now, at least within a standard 6 month mortgage validity period and that would include a substantial allowance for delays (eg a house due to be completed in say February could easily be delayed by months if we have a bad winter or just because the builder has other priorities)
But i dont think you'd find any builder will allow a shortstop date that is ahead of planned completion, because it means you can just walk away potentially weeks before finish, despite having signed up months previously. You are wanting to have your cake and eat it.0 -
Current Halifax HTB products have a 30 June 2019 drawdown deadline, so what makes you think you'll need to reapply?
If completion doesn't occur by then, the extension process involves a simple product change and valuation refresh.
Obviously, you don't embark on any extreme purchases on credit, nor apply for new credit between now and then. It should also go without saying to make sure everything is paid on time.
On HTB you have three months to exchange contracts and a further six months to complete and your solicitor can ask for an extension, if needed. All you should ensure is that the builder has secured their allocation from the HCA for 19/20 as anything with an ALC in May comes out of that year's funding, not this year's.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
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kingstreet wrote: »Current Halifax HTB products have a 30 June 2019 drawdown deadline, so what makes you think you'll need to reapply?
If completion doesn't occur by then, the extension process involves a simple product change and valuation refresh.
Obviously, you don't embark on any extreme purchases on credit, nor apply for new credit between now and then. It should also go without saying to make sure everything is paid on time.
On HTB you have three months to exchange contracts and a further six months to complete and your solicitor can ask for an extension, if needed. All you should ensure is that the builder has secured their allocation from the HCA for 19/20 as anything with an ALC in May comes out of that year's funding, not this year's.
Which product is this as our broker didn't mention this to us? We applied for a 5 year fixed but won't matter as it will expire in 6 months and we will have to change. Also our broker said that Halifax do not perform a reinspection for extension as their surveys are valid for 12 months?0 -
The current HTB products have a drawdown deadline of 30 June 2019. For example, FAW986 fixed at 2.17% until 31/12/2023 with £1,000 cashback on completion.
I didn't say a reinspection after six months, I said a refresh. No reinspection is required and no charge is made.
We do approx thirty HTB newbuild applications a month, many with Halifax.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
kingstreet wrote: »The current HTB products have a drawdown deadline of 30 June 2019. For example, FAW986 fixed at 2.17% until 31/12/2023 with £1,000 cashback on completion.
I didn't say a reinspection after six months, I said a refresh. No reinspection is required and no charge is made.
We do approx thirty HTB newbuild applications a month, many with Halifax.
First of all thanks so much for helping out. I greatly appreciate it taking time out your day to help people on here.
So when it comes time to refresh do they take payslips and bank statements again? Do they do any checks again? I'm in a situation where I found a new build in an awesome location and it's a really nice development but I worry a lot. So just trying to see my option. When it comes to a refresh what does the bank check?0
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