New builds

[mosaictiles]

We want to sell our house and ideally would by a new build. Due to the market I think it could take a long time to sell our house. Reading about it with new builds you need to exchange eg a month or so after you reserve a house. This wouldn’t work as I won’t exchange on a new house without simultaneous exchange on my house - otherwise if I don’t sell my house I could end up need to complete on the new build or lose my deposit while still owning my house. Anyone know how this works in practice?

It depends on the stage of the development. Some are in phases and if there are built properties towards the end of a phase, it’s possible to sell and buy simultaneously.

If it’s at an early stage they’ll want you to exchange soon after reservation, as you say, so you have to sell your property and the new build probably won’t be completed at the same time.

We’ve bought new houses several times. Twice we’ve bought and sold together, both times with houses at the end of a phase, once we sold and borrowed a friend’s house for three months and once we sold and rented for six months.

Most people sell and move into rented whilst waiting for their new build. I bought my new build and managed to do it in a chain, however I had a first time buyer purchasing my house who had been waiting 18 months and two house purchases fall through, and the new build came unexpectedly available as the person that was buying it hadn't got their finances in order. We then could rush it all through. Even then I was threatened a couple of times with taking my reservation off as it didn't move as quick as they wanted it to! They will not wait for you!

Thank you! Have three dog so not sure renting somewhere is feasible!! It seems a strange system but it is what it is I guess

You wouldn’t be able to exchange on the new build until your sale was ready anyway, your solicitor wouldn’t allow this. Have you asked the builder about part exchange?

It's because it's a business- they need the money to keep coming in from house sales to continue paying to build the next phases. I also thought it was odd but it makes sense, they can't be waiting 6 months to get payment, they need to plan their cashflow.

We don’t meet the conditions for that unfortunately - downsizing and current house is over their value threshold

When we purchased our NB property we were totally bewildered at the way things are done but investigation soon proved that it was quite normal and we had to go with it.

First thing we asked was if the developer did PX but that was a no.

Our new house was reserved off-plan and we were told that we needed to exchange in 6-weeks but completion was probably 12-months away.
We sold ok and although exchange was delayed by a few weeks, it went through and we were able to exchange on our NB.
We arranged (with the consent of our buyer) for a delay of 5-months between E&C on our sale. We then moved into another property we already owned where we lived for another 5-months until we could complete on our NB purchase.

Speaking to our new neighbours, all had to arrange interim living arrangements which ranged from living with relatives to going into rental for 12-months.

Some on the development (although not many) purchased houses which were already built so were sold with immediate occupation available but those people could choose only a few (or none) options from the long list normally available.

It was a stressful time but made much easier by already owning a suitable second property we could live in, a situation not available to most buyers.

Could live with my mum but it’s a two bed bungalow and would be me my husband and three dogs so might be a bit much!

Are you completely sure you want a new build? The standards are not as high as they used to be. I would check out the reputation of the builder.

We are looking at Denbury? Haven’t got much further than looking and doing a sneaky drive by to see the development though.

I moved into my new build earlier this year and exchanged and completed on the same day. I reserved last year