Exchanging on a new build

[unmortgageable56]

We are looking at some new build homes and I have a few questions about the exchange of contracts.

We originally looked at some Barratt Homes houses and were told once we reserve we have to exchange within 28 days, even though the house won't be ready for at least 3-6 months, and we obviously won't have a completion date (which I thought you needed to exchange?)

We're now looking at David Wilson Homes. They're the same company as Barratt so I assume the same will apply.

I'm really confused by this. Do I really need to exchange with no completion date and hand over my deposit within 28 days of reserving? What if they delay the build by 6 months and I cannot wait that long, I will lose my deposit money? Plus with the David Wilson Homes I will almost definitely have to reapply for the mortgage as that house won't be ready until November/December/January

Thank you

This is the norm and unless you can get a builder who does PX you will probably have to work with it.
We reserved on our new build (not Barratt or DW) last April, exchanged about 60-days later (was meant to be 42-days but our buyer messed us about to the extent we thought we would loose our reservation but we made it) and moved into temporary accommodation for a few months.
The completion date for our new build moved a few times, from March/April 22 forward to Dec/Jan 21/22 and finally to Feb 22 (we moved in last Thursday).

Yep the norm

We had to exchange within 6 weeks of the reservation but won't complete until may

You either need to find understanding buyers (if you're not FTB) or rent (what we had to do)