Buying a new build - need to exchange within 28 days of making an offer?

[SadPander]

Hi, We are going to see a new build next week (hopefully, they keep putting us off due to it being a building site!) and if all is well are planning to make an offer and buy it off plan. I called to get an agreement in principle for the mortgage today and the mortgage company mentioned that on a new build we maybe required to exchange contracts within 28 days of placing an offer. Does any one know if this is common or have any experience?

We just accepted an offer on our house today, and even assuming it all goes through smoothly I doubt our buyers would be ready to exchange in 28 days and I don't want to commit money and exchange on ours before then in case our buyers pull put and we loose our deposit. Our mortgage offer could take up to 6 weeks so I don't see how this time frame is vaguely possible?

Also, concerned that we will have to exchange and therefore commit to a date to be out of our house without really knowing when the new house will be ready to move into. The mortgage offer only lasts 16 weeks, and we need this to exchange. As the house isn't built yet I'm concerned that the mortgage offer will run out before we complete. We may struggle to get an extension as I will be on maternity leave by then. Is this as much of a minefield as it sounds?!

I've brought three new homes and had the 28 day exchange period each time so it is very common. I think you need to find out roughly when the new house will be built and then see if your mortgage offer will still be valid. New homes can be built pretty quickly.

If you have a serious offer and are working towards exchange, they will usually be flexible on the 28 days. Ours went out to 6 weeks with no problem with the builder.

If the house isn't even started yet, you are going to have more than 16 weeks until completion. Can you speak to an independent advisor, who can explain about your mat leave before application? It might be better if they figured this into your initial application, so it doesn't change anything later. Our mortgage had a 6 month validity, which we still needed to renew, but nothing had changed for us.

As for your buyers, you will likely need to move into rented - ask the sales office, as on our development they had a couple of properties owned by landlords who rented them out to people waiting to move in.