Bought a house off plans, now what?

imandy

Hi everyone,

I paid deposit for a new house off plans. I saw the showhouse, I liked it and decided to go ahead but I have a couple of questions.

1. I was told the house is expected to be finished at the end of 4th quarter. Do you think from July to December is a realistic time to complete? The only thing is there right now is just foundation. I know this depends on many factors like weather etc.

2. Myself and the solicitor received the contract but didn't get to meet yet. I noticed a paragraph that says within 24 months they should complete and empty the site. So basically they could finish it in 2 years right?

There is also a paragraph where it says: If my mortgage is refused because I can't get life insurance then I will get my 10% deposit back. This paragraph is cut out by them with a pen.

Any of you bought a new build and added a "Subject to mortgage approval" clause in the contract? Was that accepted by the builder?

I would definitely need this in my contract since they expect to finish everything in 24 months then I could get sick or something and won't be able to get life insurance.

Thank you!

Darc19

The 24 months is to complete every house and finish all roads and landscaping.

Fairly standard statement.

Foundations and accompanying pipework is one of the main construction jobs, once that's complete the structure goes up quite fast.

So house ready for Christmas is probably about right.

Assuming your solicitor has experience in conveyancing, they will answer all your queries quickly - that's what you are paying them for.

Samuel T. Cogley

You're unlikely to get a subject to loan clause added but you can ask.

MSVforever

I don't think you'll be in the house within 6 months. It's more likely 12 months plus tbh. I took us 13 months from putting down the booking deposit and getting the keys (other neighbours got in after 16 to 18 months). Make sure that your solicitor insists on including the "subject to loan" clause in the contract.

If you have / had any sort of cancer then be prepared to get mortgage protection insurance refused. Check out if your employer has death in service benefit in place which could be crucial to get a waiver from a bank (I speak from experience ).
Again I would insist to get this clause re-instated in the contract.
Any good solicitor will help you with this.

imandy

Thanks for your answers everyone. I do have a chronic ilness but I had no issues securing mortgage protection. I even sent a report from the GP. The quote is only valid for a month and insurance company could change their mind in a couple of months. I don't want to risk it.

The employer has death in service benefit which is about half the mortgage. I will let you know how it goes in case anyone else is facing the same issues.

awec

imandy wrote: »

Thanks for your answers everyone. I do have a chronic ilness but I had no issues securing mortgage protection. I even sent a report from the GP. The quote is only valid for a month and insurance company could change their mind in a couple of months. I don't want to risk it.

The employer has death in service benefit which is about half the mortgage. I will let you know how it goes in case anyone else is facing the same issues.

You'll be risking it either way, since mortgage protection isn't put in place until you draw down the mortgage, so in your case that will be at least 6 months from now.

Foundations -> completion in 6 months is pretty fast, but it would depend on how many houses they have to build, whether or not they've built many of your house type before and what order you're in in the current phase.

fungie

Samuel T. Cogley wrote: »

You're unlikely to get a subject to loan clause added but you can ask.

I had one added 2 weeks ago, no problem.

stdidit

imandy wrote: »

Hi everyone,

I paid deposit for a new house off plans. I saw the showhouse, I liked it and decided to go ahead but I have a couple of questions.

1. I was told the house is expected to be finished at the end of 4th quarter. Do you think from July to December is a realistic time to complete? The only thing is there right now is just foundation. I know this depends on many factors like weather etc.

2. Myself and the solicitor received the contract but didn't get to meet yet. I noticed a paragraph that says within 24 months they should complete and empty the site. So basically they could finish it in 2 years right?

There is also a paragraph where it says: If my mortgage is refused because I can't get life insurance then I will get my 10% deposit back. This paragraph is cut out by them with a pen.

Any of you bought a new build and added a "Subject to mortgage approval" clause in the contract? Was that accepted by the builder?

I would definitely need this in my contract since they expect to finish everything in 24 months then I could get sick or something and won't be able to get life insurance.

Thank you!

We're in a very similar position to yourself. We got the subject to loan clause added without any issues just a few weeks ago. It's a standard thing that any solicitor should be requesting but not all builders will accept adding it so you would have a decision to make if that happens.

Our guide completion date is also the end of the year and I can tell you that in the past three weeks our house went from just a foundation to having all the downstairs block work and the upstairs gable complete so December is definitely realistic. Unless it's the first phase of the estate, I'd also recommend checking Facebook to see if there is a residents group for the estate, we got some great reassurance in our one with regards timelines and build quality from people who had already moved in.

missmatty

Definitely ask for the subject to loan clause anyway.

We put our deposit down Feb 2018 when there were two rows of bricks up on the house, moved in Mid-August and our neighbours were in in July (even allowing for the delay caused by the big snow) so it is possible.

imandy

Excellent! Thanks for answers everyone. Just heard back from solicitor. He had a client buying from the same builder recently and had a war trying to include this clause with no success. Will see what they'll say but looks likely the answer will be the same.

PhoenixParker

I think, but am open to correction, that you can take out the life insurance policy now and assign it to the mortgage at drawdown.

You'd need to take it out for a larger amount and slightly longer term. That way its value would match/exceed the mortgage amount on drawdown day and throughout the mortgage lifetime.

Worth asking about.

imandy

That's what the insurance company told me, that I could basically start insurance now for the amount of my mortgage + 5000 euro and start paying now but that feels like a waste of money. Also if lets say the builder takes more than 6 months to complete, my letter of offer expires and if the bank decides not to give me mortgage anymore for whatever reason then I'm left with the insurance. I would rather look for a different house.