Housebuilder hasn't paid the highways and sewer bond, now mortgage company won't release funds

[Canklesofglitter]

Found out at 4pm today - minutes before we were due to exchange - that our developer hasn't paid the bond that the water company and highways body need. The mortgage terms are that it must be paid for them to release funds.

The developer is a big national, not a small outfit and we will be only the third occupied house out of 150 - so it's likely it's a matter of it not being paid YET rather than not being paid at all.

Does anyone have any experience of this? Is there likely to be a solution or do I need to start getting my head round this purchase not happening?

Why haven't they paid it?

Usually it is required prior to first occupation.so.shoulf have been paid.

They need to pay up and problem sorted.

It will depend if they have technical approval and an agreement in place. If there is no agreement in place then technically there is no bond to pay as yet, that only becomes due once the agreement is signed. If you are one of the very early occupations there is a chance that they don't have an agreement yet and could be building at risk. Which developer is it? As some are worse than others for building at risk.

It's Miller homes feck. Everything else is in order except this.

You could ask the highways and water authority if an application has been made and whether there is an agreement in place. Then ask the builder if they have a timescale for paying if the agreement is in place. I'm quite surprised by your mortgage lender, but the builder should be paying the bond before they sell the houses. This covers the owners should the builder not finish the work, they have the funds to complete.