nothing to do with cycling - houses

[Willow]

Quite a long story but the basis of the question is I want to reserve a new house, it is an infill of 5 but only one of the size I want. Builders want a non-refundable deposit of £5k to secure. I think it is an unreasonable amount my intentions are good but have property to sell and given current climate.... No foundations even in yet and I don't want to waste £5k I think £1.5k is more reasonable - any suggestions? I have been in the sidelines making enquiries from when the first board went up 6 months ago indicating there would be some houses being built, I was given the plans and they have even agreed to adapt a couple of features for me. Expensive part of the world, market not as badly affected as some areas but prices I am sure will change. I would have to pull out if mine didn't sell and then would lose the £5k. Views please

 

[Night Train]

I would say that if you do go for it make sure you have a contract that states when it will be completed and handed over. Also make sure there are clauses in it to secure the maximum price and what compensation you have if they are late or don't build at all. You need to ensure that you get refunded all your deposit and any costs if you are unable to complete due to the builder's delays or over runs. On top of that you need to know when the rest of the development will be completed and what effects there will be on your property if the others are not built or completed. That will affect your property value, access, services, etc.

Make sure your solicitor is well versed with this type of purchase.

I think the deposit isn't too bad but it depends on the value of the property when complete. It also depends on your contract. It should only be non returnable if you fail to complete for no good reason. You should make sure that you can get it back (with interest if necessary) if they fail to start the build or complete it within a reasonable time.

The market is on your side so make sure your solicitor is too.

 

[shimano]

frankly I wouldn't do it - don't know where you are but the housing market has ground to a halt up here. 3 bed house next door in fine order hasn't had any interest in 4 months. There are several small new developments nearby that have been made watertight and nothing more done to them for months. Certainly do nothing until yours is sold for sure and then go looking for a new build near completion that the builder will want some quick money for.

 

[Willow]

The problem here is no new builds are very rare in our village, in fact not many houses come up for sale at all. I have had a bit of good fortune which I need to be sensible about but am anxious to give my children a better home I can't replace the one we had before a younger model arrived but I can find a bedroom where the oldest can sit up in bed without banging his head on the ceiling!

 

[Cycling Naturalist]

Do not under any circumstances hand over a deposit like that to a builder in the present climate. See a solicitor and get some proper safeguards. The way things are with builders, the 3.30 at Kempton is a safer place for your money.

 

[Twenty Inch]

What Patrick says. Developments all over the country have ground to a halt as builders can't raise the loans to finance them, and don't think they're going to sell them. You might be waiting a long while for completion.

 

[fossyant]

Same here - you don't need that cash to secure the house.......