Pull out of new build purchase?

[Rinabee]

Hi all,

Just to give a bit of background myself and husband (2 kids under 4) have been looking for a property since 2020. Must have put in about 10 offers all always over asking price and all rejected to higher buyer. So after 4 years we decided couple months ago to go for a new build (3 bed detached) around 250k as it is a guaranteed house option. I’ve always been a bit hesitant with regards to new builds in terms of space etc but after 4 years of no luck decided to just go ahead and secure the plot, paid the reservation fee etc and are due to exchange contracts on the last Friday of this month.

Took a look on right move last week and a 3 bed semi detached older property just minutes away from our new build came up for sale. Something we’ve been looking for this whole time, definitely needs work doing to it new kitchen bathroom etc. But more potential to expand over time than the new build and a much bigger garden too. This would however require us to save over a few years to do all this work as the house itself is top of our budget. Despite all this I Put in an offer in and they’ve accepted.

Other than losing the reservation fee does anyone know what the implications of pulling out of the new build prior to exchange would be? Would you do it? Are renovations with kids extremely stressful? Help please very confused what to do.

If you haven't exchanged all you will lose is the deposit and any fees for solicitor work.

Renovations are as stressful or as stress free as you make them and this comes from me renovating a house from top to bottom room by room, although kids can be an added complication to consider when it comes to things like bathroom reno.

i would go for the older house with the potential to extend and bigger garden. After all this is what you have been after all this time. We have just had an extension done,admittedly without kids, but we made sure we were organised and it didn’t impact our lives too much. Delighted for you.

We didn't extend, but the during the first ten seven years in our previous home we decorated throughout, had new bathroom, kitchen, heating system, work done on electrics, all with DC.

We had to do heating immediately as there was none, but only thing we did during first three years was some decorating and I put some tile paint in the kitchen as they looked like 1960s relics. Slowly did the rest from there. We were able to easily live in it during this whole time and it was spread out so didn't seem like a mammoth task.

Have a chat with your solicitor this morning, explain the situation and ask them to double check what conditions are attached to your offer for the new build. They can probably come back at the same time just to confirm what you own for their fees and disbursements so far.

Lots to consider OP. Yes, upto exchange you can withdraw, just check the contact you have signed with the home builders so you don’t have any shocks.

I am not a fan of new builds personally, but I know they can be a good option for many families.

Living in a property whilst renovating is not great, dusty, dirty etc not something I would consider. Renovating always takes longer and costs more than you are expecting. I would also check the approx costs of the works you are planning, as materials, labour have increased over the last few years.

Good luck with your move.

Assuming the new build isn’t built yet you may well have lots of delays in the moving date while it’s finished later than planned anyway. So worth balancing that possibility against the hassle of work in the other house.

I don't like new builts. I had a new built flat in London and you can really tell that recent constructions are done as cheaply as possible.

I bought a 1930 house last year and much prefer older properties.

Talk to your solicitor about the implications of withdrawing now and go with the property you like best.

But remember that an older house will need work and more ongoing maintenance and you need to have some money left for that.

I had to do a fair amount of work before I could even move into the property (new boiler, rewire, fix toilet leak) so make sure you will have some money left after the sale goes through as even a full survey might miss some stuff that needs to be done fairly quickly.

Thank you all you’ve give me some really good points to consider.

Just to go against the flow here, I'd stick with the plan and get into your new home. You've been trying to do this for four years. You're right at the final hurdle and now you're looking at dropping out because of a house you don't have, might not get, might be in a chain, might fall through at any point, and even if you do manage to buy it (which is never without stresses), you'll still be stretched and have the work to do. Unless there's a big drawback with new build that means you don't really want to live there after all, I'd stay focused, stop looking around and enjoy your new home. You've waited long enough.

I agree with @pinkdelight I wonder if you are getting cold feet now the reality is you are about to move? How were you feeling about completing on the new build before this other one came along? Do you know much about the sale of the semi whether it's a chain, probate, how quick they want to complete? Is there a risk you might lose the new build as a back up option if it falls through or are there other similar options to buy in the same estate?

Renovating with small children is not fun and if you have been waiting for over 4 years to buy I'm not sure I'd be quick to jump into a big renovation project if you have other options. Doing things bit by bit is tortuous (experience of a 4 year renovation with pre school children still scars me as we sacrificed a lot of family time and experiences to get it done). Costs are very expensive right now so you need to be realistic about your ability and willingness to save or borrow the necessary funds, as depending on the condition you will need at least £50-60k for a basic renovation if you are talking rewire/kitchen/bathroom/decorating/windows/doors/flooring. Depending on your plans for extending you will need at least double that budget.

To answer some of the questions above -

possibly some cold feet yes, I think I’ve always been slightly hesitant with regards to the new build main concern I suppose was if we could fit all our belongings in as it’s ever so slightly on the smaller side. But I did feel relived once we secured it and happy to be moving into a place of our ow.

Semi is no chain owner has passed away
I am currently living with my in laws and definitely in need of some of our own space.

There are no further new builds available on our estate they are all sold, and if I was to pull out of the new build I reckon it would get snapped up pretty fast.

Downside is definitely we do not have the extra cash flow for renovations at the moment maybe roughly we will have 10-15 k leftover. So I am definitely worried that renovations etc will cost a lot and put a strain on the financial side of things.

Sorry ignore my later post, saw that you had offer accepted. But still - it sounds like more than you can afford. I'd go with the new build but then I'd want to be in a place I could afford more than stretching myself for a bit more space. Renovations are really pricey right now.

Hmm, difficult if the new build is a bit of a one off so I can understand your dilemma. The good news is that both are In the same location so ultimately it comes down to budget and your capacity and willingness to cope with the discomforts and financial pressures of renovating.

In my experience your £10-15k would be swallowed up very quickly doing basic maintenance and priority repairs before you even start on longer term structural or cosmetic changes so I would get a survey booked in urgently. You can find your own surveyor rather than the one from your mortgage company and pay extra to have their report fast tracked. This will.give you a realistic gauge of the extent of and potential sequencing of a programme of renovation. Your op makes it sound like quite a big project but it depends on how well maintained it has been as if big ticket items like the roof, windows and heating system have been neglected you are looking at some serious costs before you even start on cosmetic upgrades so you need to go in with your eyes open as presumably with two children under 4 you still have some some expensive childcare years ahead which may limit your capacity to save/service debt.

It sounds like it's all happening very fast with the pressure of the new build deadline and you don't have all the info to make an informed choice.

Just to throw in as its not been mentioned. Semi vs detached is not something to just walk past. Noise through walls can be a huge stressor.

You've got young kids and the decision you have is move to a semi which will stretch you financially now and for the foreseeable future with maintenance and upgrades vs a new build which doesn't stretch you as much now and shouldnt require much/money spending on it giving more financial certainty and freedom for your family...only you can know what's best for you.

With the new build, once you have put up things like curtain rails, lampshades and loo roll holders, you probably won't need to do much if anything for the next 15-20 years except a bit of painting, new carpets at around 10-15 years and maybe a new boiler. That gives you time to raise your kids and save up for work when it does need doing.

With the older property, as well as the bathroom and kitchen, you might also have wiring that needs redoing, insufficient elecric sockets, the radiators may need desludging or replacing, the boiler might be old. Check all those things out carefully.

Thank you for the response, surveyor went in first thing this morning so hoping to get a report from him soon. Hoping the results of the survey will guide me in making the right decision.

I think this is my exact worry not wanting to stretch ourselves too much financially to a point where it impacts our quality of life etc

The 3 bedroom older semi detached house with a bigger garden should be easier to sell in the future and more probably increase in value more.

My surveyor sent me a copy of the report today, he states at a minimum at least 50k spend with things like windows radiators alongside kitchen etc needing replacement in the near future. Also valued it about 20-40k lower than what we offered based on the amount of work it needs.

I think financially that will stretch us too much and so leaning towards the new build at this point.

Thanks everyone for your responses they were all very helpful!

Sorry to hear that OP. As you seem to love this house and are ambivalent about the new build, can I suggest you negotiate with the sellers? Can you afford to meet them half way.

As you have a waited so very long, I feel it’s better to push for a house you care about.

The EA will say it is worth what it is because of the garden.

I couldn’t cope with the lounge in that new build, sorry. Seen a few that shape and they wind me up for some reason.

The first house is of an era of really well built houses, whereas new builds seem to be made of straw these days :(

Wishing you luck.

I’d stick with the new build , we moved into a new build for convenience as had to relocate and no time for projects etc and its been ideal , it’s detached which is brilliant after being in a terrace next to a very noisy family and the insulation and modern heating system have meant bills kept very reasonable.

Btw I thought I read recently that house prices in Blackburn are plummeting. Did a major employer shut down or something?

So sensible people should be open to negotiations, if I am remembering correctly. Plus you have the advantage of being able to say you are losing a lot of money on another house to buy it, which already shows how committed you are to it.

They can be a bit soulless but we are seeing the house develop as we decorate and settle in , I think next move would be to an older house as want a cottage for retirement but with kids and busy lives I wouldn’t be taking on a project

The semi. No contest.

If you view the show home, take a tape measure. They often use undersized furniture.

The semi will be a money pit which you may be able to ill afford with two young children.
I’ve lived in both old and my current house was a new build and it was just wonderful to move in with nothing to do only provide a snagging list.

Good luck with whichever choice you make.