How long after receiving mortgage offer to completion for a new build?

27 replies

zuza96 · 30/03/2023 13:36

We've just received our mortgage offer today and I wanted to ask from your experience how long has it taken from receiving the mortgage offer to completion on a new build? When we bought our first property which was pre owned in 2019, it took two months and a half to complete after receiving the mortgage offer but since there is no chain with a new build will this be quicker?

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zuza96 · 02/04/2023 10:43

Candleabra · 31/03/2023 20:03

What do you mean by the financial risk?

@zuza96 sorry I should have said … the financial risk.. to me. Your situation may be different.

My new build was significantly more than the price of the house I was selling. The deposit for the new build was 10%. I couldn’t pay it without the proceeds of the full house sale. If I’d paid on exchange I’d have had to put in additional cash, which i wasn’t prepared to do just in case my house sale collapsed after exchange (unlikely but possible). Maybe I was over the top in being risk adverse, but that was my decision.

I really had no idea how complicated and annoying buying a new build is if you have an existing house to sell. It seems to be pretty much impossible to tie in completion of both properties together. (Though it sounds like your buyer is more relaxed than mine was).

I understand, we are using our sale proceeds for the deposit as well. But from what I understand we can use our buyer's deposit towards the exchange deposit for the new build, so I shouldn't have to complete on the sale before exchanging on the purchase

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zuza96 · 02/04/2023 10:44

user143777534 · 31/03/2023 20:12

If things like simultaneous exchange are important to you, make sure you instruct your solicitor to that effect in writing, not just verbally.

I've emailed him saying that'a what we want and he confirmed. Is that enough?

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