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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

How do people in a chain reserve a new build?!?!

27 replies

Southeastmamaof2 · 13/05/2021 15:20

We are interested in a specific plot in a new development. We are currently under offer. BUT it will take 9 months to complete, so they don't release the plot for reservation. Once it's open for reservation, you must be under offer and they want to exchange contracts with an open completion date. Which means I'd have to ask everyone below in the chain to please exchange contracts, wait for 6+ months for our house to be finished and then be able to complete within 10 days!
When I asked about PX, they said they can only offer this once the roof is on which means there is a chance that someone else swoops in between release date and roof-on time. How is that right?
Renting is not an option for us. We have two small children and pets, and many rental places don't allow pets (and some not even children). Not to mention that the money I'd spend on renting would be money I could use to pay mortgage off.
Am I misunderstanding the process? It feels as if developers are not interested in selling. Zero flexibility on the PX part. Most importantly: I also don't want to mess our buyers around. We are actively looking for alternatives but nothing seems to tick all the boxes.

OP posts:

Shamoo · 13/05/2021 15:26

I haven’t experienced this as I wasn’t in a chain when I purchased ours, but presumably they expect you to exchange without exchanging in the rest of the chain? And then keep the completion date open to manage that risk - who dictates the completion date ultimately? To exchange do you need to pay 10%?

Coldilox · 13/05/2021 15:30

A friend has just done this. They went under offer last week and have reserved a new build that will be ready in December.

Once their sale completes they (her, husband, 2 children) will move in with her parents until the new house is ready.

I guess there is enough demand from people who are either chain free or willing to rent/stay with others temporarily.

DeathStare · 13/05/2021 15:32

Everyone I know who has done this has rented in between. They've all had kids and pets.

Sensateria · 13/05/2021 15:36

We did this and rented in between. I don’t know anyone that’s done it without having somewhere to move into while the new build gets built.

You could exchange with the developer without needing everyone else in your chain to exchange at the same time too.

Bluey18 · 13/05/2021 15:38

Developers are interested in selling with as little hassle as possible, of course they will go with someone who is able to fit round their timeline over someone in a chain. If there's enough demand that that pushes you out you need to decide whether or not to make yourself more competitive by going into rental or staying with family or similar in between.

SpicyTinkle · 13/05/2021 15:40

This was going to be an issue for us too. We got around it by doing a part-exchange with the builders. It eliminated a lot of the hassle.

SpicyTinkle · 13/05/2021 15:42

Sorry, my post wasn't at all helpful - I hadn't read your OP properly.

Original poster

Southeastmamaof2 · 13/05/2021 15:43

thanks. so in other words: you really can't do it unless you are prepared to go into rental. Wow, that seems like a lot of hassle. Amazing that developers are in such a strong position that people are happy to do this (not to mention to pay for x2 moving costs etc). For us, staying with family is not an option because they all live abroad.

OP posts:

Original poster

Southeastmamaof2 · 13/05/2021 15:45

@Sensateria

We did this and rented in between. I don’t know anyone that’s done it without having somewhere to move into while the new build gets built.

You could exchange with the developer without needing everyone else in your chain to exchange at the same time too.

@Sensateria but you can only exchange without needing everyone else in the chain if you have a cool 10% of the house price free to put down at exchange stage. That kind of money would for most people be freed up from their own sale (as is in our case).

OP posts:

hazelnutlatte · 13/05/2021 15:48

We have moved into new builds twice while in a chain - in neither case did the builders demand a quick exchange, they just waited until the chain was ready. In a slow moving market builders will be flexible, I guess its moving fast at the moment so the builders are going to go with whoever is the least hassle, this might mean moving into rented.

londonagent · 13/05/2021 15:50

You either need to find a buyer that is in a position to wait for you or go into rented. Having kids and pets does make it harder to rent but certainly not impossible and most likely option.

StepBackPlease · 13/05/2021 15:54

That's pretty standard for new builds unfortunately OP. We're in this situation at the moment but slightly different in that we had the new build in mind when we went on the market so were able to make it clear to potential buyers that we wouldn't be able to move immediately. We had tried to part ex but developer wasn't interested as they wouldn't have made a big enough %.

We went on the market specifically with a view to securing a house on that development and accepted an offer slightly under asking price from first time buyers currently renting in our village who were ok to wait and see out their rental contract.

We were upfront with them that we wouldn't be able to complete until the Autumn (and that we'd need to exchange fairly quickly) but the lower price will make up for the stamp duty they'd have saved by completing before end of September.

It's not an ideal situation for anyone; I know lots of people who have moved in with relatives/gone into rented etc but that's not an option for us for various reasons.

Unfortunately if there's enough of a demand then developers can set their own terms. our development is nearly sold out and it's not due to be finished until October!

How many people are in the chain below you?

ArchbishopOfBanterbury · 13/05/2021 16:27

Rent in-between (or stay with relatives) so you buy chain free. It's too long to expect buyers to wait for you, especially when there are no guarantees. New builds run notoriously late.

lastqueenofscotland · 13/05/2021 16:28

Are you currently in a non-proceedable position?
That may be the issue. Sorry if I have misunderstood

IamtheDevilsAvocado · 13/05/2021 16:36

We looked at a new build... We were told we could get a reasonable discount as we could move fast... In rented so could be out within a month...

If you're not proceedable they're going to go with who is more likely to move quickly and with certainty.

You don't have to pay two lots of moving fees... Just pay for the bigger move/or neither... Hire a 7.5 ton Luton...

Then unpack just the essentials. You don't have to feel that the rental is 'home', its just a place you're living while the other is being built. My pals did this... They rented somewhere with an attached garage and put a lot of boxes in there.

hedgehogger1 · 13/05/2021 16:58

I don't know anyone who's bought a new build and been happy with it. My friend realised all her ceilings had been put in wonky when she tried to get fitted wardrobes sorted. They had to come back, pull them all down and start again..

Nervousseller2020 · 13/05/2021 17:00

We've just bought from a smaller developer no issue with being in a chain. Importantly a lot of developers hold you to exchange within 28 days off reservation. And are ruthless if this is a clause I'd think very carefully if the risks

PotteringAlong · 13/05/2021 17:01

My friends did this and they moved into rented accommodation for 6 months.

Nervousseller2020 · 13/05/2021 17:03

Developers target market is help to buy customers who are usually not in a chain. This is also why they won't get into chains

wingsofsteel · 13/05/2021 17:12

If you really want the new build I think you are probably going to have to consider renting for a while. Especially since, at least where we are, the new build developers won't give a specific date that the properties will be ready. The person we bought from was moving on to a new build and moved in to rented accommodation (with 2 DC and pets) for a few months. They clearly weren't in a rush to complete, but the first time buyer at the bottom of our chain would not have waited 6 months.

Have you spoken to some letting agents etc about possible properties?

DynamoKev · 13/05/2021 17:13

@IamtheDevilsAvocado

We looked at a new build... We were told we could get a reasonable discount as we could move fast... In rented so could be out within a month...

If you're not proceedable they're going to go with who is more likely to move quickly and with certainty.

You don't have to pay two lots of moving fees... Just pay for the bigger move/or neither... Hire a 7.5 ton Luton...

You won't have the correct licence for a 7.5t Luton unless you passed your car test before 1997 or have taken an HGL/LGV test.

Did you mean 3.5t?

BashfulClam · 13/05/2021 17:30

We put out stuff in storage and stayed with mil, luckily not was only a few weeks.

shivawn · 13/05/2021 18:06

We're in a similar situation but we took the chain out of it and saved our deposit for the new house as if we were first time buyers. Gives us a lot more flexibility and we can sell our own house when the timing suits us.

SouthOfFrance · 13/05/2021 18:14

Could you look at moving to a caravan park if there's one near you? Not sure if it would be cheaper or not, but maybe easier? Especially out of season.

Pumpkyumpkyumpkin · 13/05/2021 18:27

We had to go into rented (with pets), someone else I know moved in with parents.

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