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Help To Buy and Bellway

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mattb87
mattb87 Posts: 21 Forumite
in House buying, renting & selling
Hi everyone,

I have a question I hope you can help me out with. I've been looking at a new build development that is due to be released next week. My girlfriend and I are looking to go down the Help To Buy Equity Loan route. I asked the developer (Bellway), when the likely completion is. The answer was winter of this year but possibly eary 2018.

I'm now slightly worried as the Help To Buy states that from the date of exchange of contracts, the sale must be completed within 6 months. However, Bellway are saying that exchange of contracts should happen 28 days after we reserve.

Can I go back to Bellway and say I'd like to exchange contracts a month or so later? As Help To Buy states you have 3 months to exchange contracts after reserving. What happens if the Help To Buy Equity Loan expires?

Thanks!
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Comments

  • sheff6107
    sheff6107 Posts: 451 Forumite
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    That doesn't make sense. 28 days to exchange or 28 days after exchange to complete?
  • dannyjebb
    dannyjebb Posts: 428 Forumite
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    28 days from reserving to exchanging contracts and paying your deposit. We originally looked at a new build also with bellway but got put off by the timescale of buying offplan, we could end up paying 15k deposit, then 6 months later our mortgage offer expires and the house still isn't ready, you then have to apply for another mortgage and if for whatever reason you can't get one you lose your deposit! I believe you can make ask for a condition to be put in the contract that if the house isn't ready to complete on by a certain date you can pull out. I am sure your solicitor or someone else would confirm this. That's the info we were given, we have waitied 10 months and are now looking at a house due to be completed in June :)
  • mattb87
    mattb87 Posts: 21 Forumite
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    Apologies if it wasnt clear. Bellway are saying we would have 28 days to exchange contracts after reserving.
  • mattb87
    mattb87 Posts: 21 Forumite
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    Yes this is basically the position I am in. It seems crazy to me to offer Help To Buy on a property that is a long way off being completed and enforcing exchange of contracts so quickly!
  • Futuristic
    Futuristic Posts: 1,131 Forumite
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    It's pretty common for developers wanting to exchange within 28 days of reservation. Developments not selling well they will be probably give you more time but if they have buyers waiting then they'll probably want fast exchange to mark property as sold.
  • kingstreet
    kingstreet Posts: 38,767 Forumite
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    Once the HTB Agent has issued the ATE and contracts have been exchanged, the solicitors can get an extension so you don't have to complete within six months of exchanging.

    There are lenders offering longer offer periods on newbuilds for this very reason.

    Speak to an experienced newbuild broker.

    It is normal to be asked to exchange contracts within 28 days of reserving. Builders plan ahead and they won't add the fit-out to your spec without getting a commitment to purchase first.
    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.
  • sultanabran
    sultanabran Posts: 172 Forumite
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    Provided they see some movement on your part and you are actually trying to exchange, they don't always adhere to the date themselves.

    My missives were due to be concluded at the beginning of last week. When the builders solicitor eventually sent them over, they had mistakes in them. So we went back to them to correct the mistakes. We're still waiting to receive the amended missives. They don't appear to be in any hurry.
  • kieron79
    kieron79 Posts: 149 Forumite
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    Can I ask, if Bellway offer HTB is this classes as an incentive and therefore reducing any possible negotiations on price/extras?
  • kingstreet
    kingstreet Posts: 38,767 Forumite
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    kieron79 wrote: »
    Can I ask, if Bellway offer HTB is this classes as an incentive and therefore reducing any possible negotiations on price/extras?
    Nope.

    Typically, lenders still accept cash incentives upto 5% of the purchase price. Be careful with Halifax though as permitted cash incentives are lower the smaller the deposit.
    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.
  • kieron79
    kieron79 Posts: 149 Forumite
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    Thanks for clarification
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