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.

First House is tiny. 900 sq ft is very small for a 3 bed.

Sadly in this area of Blackburn prices just seem to be going crazy! Can hardly keep up 😩

Yes deffo smaller than I would have liked, but struggling to find something in my budget with more space.

Unfortunately that will be an affordability effect. When mortgages are so expensive, people look to cheaper areas to buy. It’s exactly what we are having to do ourselves. Where house prices also aren’t falling.

Sat in my semi detached house listening to my neighbours running about, shouting at each other and slamming doors, there’s no way my next house will not be detached.

I have just moved into a new build. I lived in a n old house previously that was over 100 years old. I love my new build. i went to top of my budget, but i know windows, kitchens etc will last for years, so no major purchases, so i can save again.

it heats up fast and stays warm. I have noticed a difference in my bills. I also have a 2 year warranty on anything that breaks in the house.

one thing to note is new builds often come with extras such as flooring and upgrades. I spend £15k on that, but upgraded kitchen and showers. Thought it’s only once I do it. I also had to pay for landscaping the garden as I was given mud

however I have the house the way I like it. I love it. I used to hate new builds, but love mine. Plus as I bought off plan and the development is being built the houses that are being sold are now more that what I have paid so hopefully a profit.

I would go for the new build, it looks lovely.

Apologies if someone has mentioned this already, but if the semi is a deceased estate, do check whether probate has been granted. You could be waiting a long time if it hasn't.

Much prefer the older house. It looks a solid house and you can do it up slowly over time. Make a reduced offer based on the survey.

Much prefer the older house. More private garden and bigger. It's not as bad inside as I imagined.

Didn’t know this, will ask the question tomorrow, thanks.

I prefer the new build

@Rinabee probate doesn’t always take a long time. We bought a probate property in lockdown, the family had applied for probate before putting it on with the Estate Agent, had probate within 3 mths.

Purchase was going through so it didn’t hold anything up.

Have you checked that there are no estate fees that could keep increasing on the new build? Quite common for new builds these days.

As far as I’ve been told no, although having a tough time negotiating with the owners of the older semi 😅

No brainer to me. House No 2 is spacious, great garden, garage and potential to enlarge later. Kitchen is very dated but the house has some nice details which house No 1 does not. It is a small box with tiny back garden, even if it is detached there is no room to grow into.

Hope you can negotiate the price down further to help with modernisation costs OP.

Isnt the second link a sold (STC)??

Yes - that is what it says!

So are you planning to go forward with an offer or are you the Sold (STC)?

Whatever you decide, you're going to have to decide quickly. It's a bit shifty to have an offer accepted on two different houses. Didn't the EA want to see evidence of your mortgage offer with the house address on it?

One of the houses is a new build so i wouldn’t worry too much about that!

We’re trying to move forward with it, we’ve got the survey results just hoping to negotiate price a little based on surveys results.

Tricky. Are your salaries likely to increase and able to forsee moving out of the new build I to something bigger as your family get older?

I lived in as smaller house without the need for work and then rentals as we moved areas and rented out our house during crazy 2009/2011 period when no-one was selling. So, no work needed until we bought a 1930s house when the children were 5 and 8. I look back fondly at the time in the 'done' hours and the rental houses as we were free to enjoy the children when they were young. The 1930s house has been a slog. If the new build can be a 3-4 year stop gap as you build savings and get back to work without Hugh childcare costs then that might be preferable.

If you think you'll have a lump sum in 2 years to sort out the 1930s house in one go, then that would be a better investment, but you might miss having a kitchen/diner while the children are little. I know I did in the rental houses.