To continue with house purchase

[ApplepieWhy]

Hi all,
I’m after a bit of advice please. I have been desperately wanting to move to a bigger property for a few years and finally in the position to be able to. Found a lovely new build (only three in the development) and the developer is taking my current house as part exchange, so haven’t had to worry about selling or chains etc. The new property is ideal, love the look, the living space, area etc…..however, my solicitor has got the searches back the following has been found: the property has been built on contaminated land-it’s potentially not as bad as it sounds as the developer should have rectified this (we are just waiting confirmation) but potentially it could cause health and structural issues. My solicitor reassured me this is more common than you would think, but still a worry and even if rectified will still show in future searches therefore potentially putting off other buyers if I want to sell (which I will when I’m older). Secondly, it’s potentially on land that could cause mild subsidence, again this is apparently normal and will need a structural survey but as it’s a new build it won’t help much! Normally you have the 10year guarantee on new builds which would help with these issues but I have also found it won’t be covered by this and will only have a 6 year architecture guarantee on the structure, despite the estate agent telling me it had the 10year guarantee when I looked around!
I am so confused, I don’t know what to do, it’s a good price and I don’t have the stress of selling mine but I don’t want to throw all my money into something that won’t sell/could have potential issues. I’m also worried about finding a new property as there is just nothing and I have been looking for years on and off! Then there is the problem with the mortgage rates going up again if I don’t use my current offer.
Has anyone else been in a similar position or what would you do if it were you? I really don’t know what to do for the worst. My solicitor doesn’t seem to think it’s an issue as such but I can’t help thinking it’s one thing too much!

Also agree with PP that what's the value of your current house and is it therefore worth it? How much is your cost of "the hassle of selling?"

I have lived in a "newly done" conversion & the 10 year old warranty wasn't worth much when tested (and we only had minor "settling" issues)

I wouldn't buy it I'm afraid

Oh and ps, your solicitor won't get paid unless you complete so no, they won't be bothered

I’d never consider a house with risk of subsidence. Walk away.

Nah, doesn’t sound remotely normal op; not sure what your solicitor is on.

The thing is it’s bothering you. It would bother me as well. Therefore, it’s not an unreal opinion to think it will bother someone else in the future. Honestly I would walk away.

No dont touch it with a bargepole. Dont be the one to take on this problem.

Are your solicitors costs being paid for by the developer?

What do your buildings insurers say about the subsidence risk?

I understand the position you're in, but back out! Honestly you're being shafted from every angle. Get out & fast & don't pay anyone a penny.

I know it's disappointing, but it's a scratch on the surface of what might happen if you do buy it!

Out out out

Subsidence and contamination?! Don’t even consider it

cut your losses and move on

New build without a 10 year warranty would be something to question I would think. With those risks is it a case of the developer not being able to buy it because the risk is too high or choosing not to because it's so expensive. Personally, I would walk away - a bit of convenience now not having to go through the process of selling your house could become a huge inconvenience later with structural issues and potential health problems.

The government was/is trying to bring in 15 year compulsory guarantee. If they do, yours will look even more of an anomaly.
Contaminated land may be something or nothing, but risk of subsidence is something.
As a PP said, 10 years is the standard. Without it I wouldn’t bother, even if it now becomes available.
On balance, unless vendor comes back with all the environmental certs and that the house is on piles, and a 10 year warranty, I would not be taking this risk.

They're only offering a 6 year structural guarantee. That's nothing.

You might end up never being able to sell for a high enough value to allow you to buy somewhere else when you're older if things go wrong. I'd avoid this house.

Walk away.

You won't get the best deal with a part-exchange and you will end up with a dodgy new built that might start causing problems immediately.

Instead, put your current house on the market and take more time to find somewhere.

I am house hunting as well and I have totally discounted new-builds because they seem to come with too many issues (like estate maintenance charges) and are so poorly built.

The guarantees are also not worth the paper they are written on.

Christ no, do not go ahead.

How did you find your solicitor? Via the seller’s EA or did you find them yourself?

Is it a known builder or just some bloke who has built something on his land? What’s their explanation for the lack of NHBC? How does the price they’re offering for your house compare to local agents’ valuations?

Walk away. You could end up with an unsaleable house worth less than your mortgage, plus a huge bill to rebuild a collapsing house.

The hassle of putting your house in the market is nothing in comparison.

Can I just correct a couple of statements on here?

"You will be getting rinsed".. not necessarily, depends if the OP knows what their house is worth and is getting a comparable value. We did.

"Oh and ps, your solicitor won't get paid unless you complete so no, they won't be bothered".. you will need to pay your solicitor for work done so far, you can't just walk away.

The contaminated land wouldn't bother me as much if it's been treated, that's really common on brownfield sites nowdays - but I would walk away from potential subsidence and only a 6 year guarantee.

Also disagree about getting ripped off, I'm sure OP has considered what the house is worth. Some mortgage providers require a 10 year new build warranty in order to lend, so I would check that. I have heard they aren't actually that useful in terms of making claims, but I've got zero experience there.

If the contamination can be fixed, it's not going to be an issue for an onward sale? The potential for subsidence needs exploring, I think that would be my main concern. Can the developer give you copies of the plans, details of foundations etc?

Hi all, thanks for your replies. In relation to the part exchange I had three valuations done on my current property (as was intending to sell) but the developer offered the asking price.
I think had it been one issue that’s a bit more workable but having so many think I need to walk away. I was going for a new build because when I purchased my current property there were so many issues so wanted something I could move straight into and not worry! Seems like there are issues no matter what you buy.

So the developer is selling you a house that may well be prone to subsidence and built on contaminated land, and in return is getting a (presumably) normal decent house which will be nice and easy for them to sell…. AND you’re paying him more money on top of it?

im sorry, I can’t see this being a good idea.