New Build Exchange Delay Drama (help to buy)

New Build Inspections

spoony

New Member
I'm in the process of buying an off plan property which I reserved back in October 2016. The estimated completion date was February/March.

Through a financial advisor I applied for a HBT equity loan and a mortgage which were both approved. The mortgage had an expiry date of the 20th May so there was a couple of months to play with just in case the build completion date slipped.

After all of the searches came back, the solicitor applied for an Authority To Exchange with HTB which was issued. Deposit monies was sent to the solicitor and as of the 15th December we were in a position to exchange. The developers solicitor said that due to the fact that the property wasn't going to be completed until the new year (2017), an additional authority from HTB was needed to ensure funding was still available. In addition, the build completion date was now March/April.

Due to Christmas and New Year, the Authority To Exchange expired as it's only valid for 3 weeks and as a result a further authority was applied for and received.

Whilst this was being applied for, the developer got in contact and stated that the build completion date was now May/June and as my mortgage offer ran out on the 20th May they wouldn't now exchange as there wouldn't be a valid mortgage to cover when the build completes.

The mortgage provider was contacted who stated that the offer could only be extended two weeks before it expires and not before. As a result a new mortgage with the same provider was applied for and a new offer was issued which is valid until mid July.

The developer appears to be slightly cagey about why the completion date is being pushed back and all they'll say is they only give estimates. I have been in a position to exchange since December however they still seem reluctant to actually exchange saying that they are yet to confirm the completion date. It seems this completion date is the sticking point.

Having never bought a new build property before, why would a developer not want to exchange despite me in a position to do so? Should I be concerned? The site sales team have been spot on I have to say but now the Sales Manager has got involved although I haven't spoken to her directly. My entire HTB application expires next week and if I don't exchange by Wednesday I'll have to apply for it all again.

I'm even thinking about emailing the developer's Director directly if I don't get an answer on Monday as they promised movement by today (Friday) but I haven't heard anything.

Thanks in advance,
 

Shashin

New Member
I'm in the process of buying an off plan property which I reserved back in October 2016. The estimated completion date was February/March.

Through a financial advisor I applied for a HBT equity loan and a mortgage which were both approved. The mortgage had an expiry date of the 20th May so there was a couple of months to play with just in case the build completion date slipped.

After all of the searches came back, the solicitor applied for an Authority To Exchange with HTB which was issued. Deposit monies was sent to the solicitor and as of the 15th December we were in a position to exchange. The developers solicitor said that due to the fact that the property wasn't going to be completed until the new year (2017), an additional authority from HTB was needed to ensure funding was still available. In addition, the build completion date was now March/April.

Due to Christmas and New Year, the Authority To Exchange expired as it's only valid for 3 weeks and as a result a further authority was applied for and received.

Whilst this was being applied for, the developer got in contact and stated that the build completion date was now May/June and as my mortgage offer ran out on the 20th May they wouldn't now exchange as there wouldn't be a valid mortgage to cover when the build completes.

The mortgage provider was contacted who stated that the offer could only be extended two weeks before it expires and not before. As a result a new mortgage with the same provider was applied for and a new offer was issued which is valid until mid July.

The developer appears to be slightly cagey about why the completion date is being pushed back and all they'll say is they only give estimates. I have been in a position to exchange since December however they still seem reluctant to actually exchange saying that they are yet to confirm the completion date. It seems this completion date is the sticking point.

Having never bought a new build property before, why would a developer not want to exchange despite me in a position to do so? Should I be concerned? The site sales team have been spot on I have to say but now the Sales Manager has got involved although I haven't spoken to her directly. My entire HTB application expires next week and if I don't exchange by Wednesday I'll have to apply for it all again.

I'm even thinking about emailing the developer's Director directly if I don't get an answer on Monday as they promised movement by today (Friday) but I haven't heard anything.

Thanks in advance,

This is normal, downside of reserving too early..
I think you should push the builder to give you more precise date. the way you describe this may go to a later month in 2017 or even 2018.

we moved in new built last year after changing the plot that was near completion (as previous buyer pulled out)

the plot we had booked was to complete Jul2016 they then moved it to August. At this point I started calling the sales office daily and then head office, I was then offered the house we moved in with a promise they will finish it in August2016 for sure- they managed this in sept2016. and the one we had originally booked is still not complete ( 6 months delay& counting). we are happy that we let it go
 

FTHB_Diary

New Member
Did you mean 3 months on the authority to exchange rather than 3 weeks? I just checked mine and that's what it said.
 
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