New build completion date pushed beyond SD cut off - would you still proceed?

[pepperaniswarzenegger]

I'm buying a new build. About ready to exchange and the builder has informed of a delay to the build schedule of 2 months. This means I will now have to pay stamp duty.

They are adamant they can't pay it for me as I've received their maximum incentive package, and I would also need to declare it to my mortgage lender. I've pushed and pushed but they aren't budging. The development is very in demand and I love the plot I've chosen.

I can just about afford the stamp duty, but it will mean making sacrifices with the house, I won't be able to get the kitchen units and worktops I wanted and may need to change my tiling and possibly flooring choices too.

Would you still proceed?

There’s a possibility the stamp duty will be extended, albeit at last minute most likely.

If you’ve got to make sacrifices it sounds like it’s more luxuries that you’re sacrificing rather than things you need. Like, you might not get the fancy kitchen units but you’ll have good enough kitchen units that do the job, right?

What's the alternative? Would you be staying where you are, or do you need to move either way? If the latter then you're going to be paying stamp duty either way, so might as well stick with the house you love. Any alternative that you find might not have an ideal kitchen or tiling either.

No I don't have to move. The alternative would be just to stay where I am.

Current house is fine but just very small. New house was going to be the home I planned to stay in for the next 10-15 years at a minimum, which is why I'm reluctant to move in with a choice of kitchen etc that I really hate.

Desperately trying to think of anything I have in the loft that might be worth £6k 🙈

Hold your nerve - wait till the last possible minute legally then tell the builder you can't make the sums work and need to walk away. They'll come up with a discount.

For the sake of £6k, for a house you want to live in for 15 years, if you really want this house, I would go for it.

Would you have bought this house if the stamp duty holiday had never been introduced?

That would be 26th January in 2 months, stamp duty runs out 31st March you have 4 months until then, or are they starting the work in 2 months?

I always keep 6 grand in the loft for emergencies 💸

Where are the builders at - is the development selling well or stalling? Are the builders nearly finished with the development or at the beginning?

We pushed our new build developer beyond the limits of their incentives package, but the house we wanted was the end of phase one and they wanted to move into phase 2. Other people didn’t get such good deals if they bought at the beginning of a phase.

Speak to your mortgage company/broker. We negotiated stamp duty off our new build, then the holiday came in, we already had about £11,000 of incentives and stamp duty was a further £8500, Barratt basically agreed to give us £8500 on top of other incentives so we could benefit from the holiday, they had to check with our mortgage provider (Nationwide) to explain the situation and it was allowed as a special circumstance, it was put down on the paperwork as a mortgage cash back offer. I don't see why this couldn't also be treated as a special circumstance, more so as we were jammy but you'd be directly losing out, I'd keep pushing!

How many incentives do you have?

Stamp duty holiday will be extended, I presume, it’s a sensible option, gov will want to prop up the property market, rather than add to the woes.

I won't be able to get the kitchen units and worktops I wanted and may need to change my tiling and possibly flooring choices too.

These might be your negotiation points. Tell them as they've fucked up, the least they can do is stick with the spec.

Honestly, I’d walk.