House buying dilemma

[mrboingboing]

Could do with some advice. I put a deposit on a new build in the perfect location for us back in August. I sold my house but the new build was delayed by a month so I moved in with family in the interim.

Trouble was it was then delayed by another month, then another.....Staying with elderly parents with my two children ( one with additional needs) became unsustainable. So after being promised it would be ready to move into by mid Feb we moved into a winter let.

It's still nowhere near ready and we need to move out of here by 12 April. I can't face going back to my parents for more than a couple of weeks. Estate agent will not be drawn on when it might be ready. In the meantime my mortgage offer expires at the end of April, and obviously the stamp duty holiday ends at the end of March. Plus I'm throwing money away on rent. I'm 50 so can't extend my mortgage term so really need to get back on the property ladder ASAP.

I viewed another house today. It's cheaper, slightly bigger, would need a new kitchen and bathroom, but location isn't anywhere near as nice. It's a perfectly acceptable house. I'm just not thrilled with it. But we desperately need somewhere to live! All the children's toys and most of our belongings have been in storage since August. We've literally been living out of a suitcase. This can't go on.

What should I do? Buy the sensible house? There's nothing else on the market in my price range currently. Or do I try and hang on for the new build? But risk losing the mortgage offer and possibly be homeless still 6 months down the line???

I feel for you, what a difficult situation. Is the new build worth the risk and inconvenience of hanging on for? How long will it be?

It sounds like you are disappointed by the idea of a 'perfectly acceptable' house but it might be better than interminable hanging on?

What does your bank say about you losing the mortgage offer? Is it likely? Could you get a 6 month rental and unpack properly till new build is ready?

Fwiw stamp duty holiday has been extended hasn't it?

Estate agent will not be drawn on when it might be ready.

What state is the house currently in? Do you know why there have been so many delays?

I suggest telling the estate agent you need to know the latest date it will be available otherwise it is no longer viable for you. Then ask your solicitor to exchange with a ‘long stop’ date (I think that’s what it’s called) which means a date when it will be available by, or before, with a financial penalty if it’s not. If this isn’t forthcoming I would take a 6 month rental whilst you look for other things and tell the agent to come back to you when it’s ready and you’ll let them know if you’re still in a position to buy

Hi OP, this all sounds odd. I deal with some new-build developments and the developers are keen to get contracts exchanged asap. The contracts will then have provisions for completion on notice after practical completion of the building works - and an ability for the buyer to pull out if they are not ready to complete by a certain date in the future.

If you're still hanging around waiting then I'd be a bit more pushing about finding out what the score is.

Are you able to see the new build? How complete is it? Once the roof goes on there should be no more delays.

Very frustrating for you though.

You need your solicitor to start earning their money and demand some sort of compensation. Have a good look at the contract you signed when you put the deposit down.

Thanks all. I spoke to my EA earlier who promises I will have a date by the end of the week. So I'll wait until then to make a decision, although of course I may lose the other house in the meantime.

The difficulty is I don't have much leverage. 6 other parties who bought the same time as me have pulled out but the developer has put them back on the market for £10k more and sold them immediately. It's a sellers market currently.

I agree with a previous poster who said it seems odd. The EA today told me it's apparently a multi millionaire who is the developer with very little experience of building. He's in London and employing local building firms. The houses are finished, just got my kitchen and bathrooms to be fitted, but they've been like this for a number of months. Apparently the hold up is getting services onto the site, such as water, gas, electric etc.

OP, it was me earlier who said it was
odd. The delays etc aren't odd but strange (and slightly concerning) that they aren't showing any sign of trying to exchange contracts with you. Presumably you've just put down a reservation fee? What does that tie the developer to? If you want to pm me (won't be offended if you don't!) please feel free.

Maybe they want you to pull out in order to sell for more.