buying a new build

maggie797

I hope someone can help me, I am in the process of buying a new build house in an estate and I dont have a clue about the process. I have paid my booking deposit last Monday and spent some time with the builder looking at plans etc. He has told me the house will be ready in March 2006, he also indicated that completion of contracts and full deposit paid will be completed around the end of April2005. Is this normal practice to complete so far ahead of the house being actually finished and what are my rights if things go wrong with the project or if the buliders go out of business?
I am also trying to organise a mortgage but obviously wont be needing to draw it down for quite some time? will the banks be ok about this?
If anyone could help me with these queries or provide links to newbuild websites would be fantastic

Victor

I suggest that you:

(a) get yourself a solicitor, to go over the contracts and inform you on your rights and obligations and spot anything thats out of order.

(b) talk to the banks / building societies / mortgage brokers and see what they are generally willing to offer. They will need paperwork like pay-slips, P60s, bank statements, etc.

(c) at some stage you might want to employ someone to keep a general eye on the construction and to do a snag list at the end.

By the looks of it you have maybe 4-5 weeks to come up with €200,000+. Get working on "(b)" Monday morning.

garred

Yeah buying off plans can be a nuisance sometimes. They usually ask for booking fee, then 10% for builder and on completion and snagging you pay the remainder. Best bet is get a decent solicitor (they usually charge half % value of house). Good luck with it.

maggie797

thanks for that advice, I do have a solicitor, so I will make an appointment to see them to clear up my confusion, I have asked the builder will he accept 8% deposit and he was ok with this, and I have a broker working on a mortgage for me.I am assuming approval will be granted over the next couple of weeks..however I still am concerned that though I may get approval in the next few weeks, I wont be drawing the mortgage down until next year, will I have to get approval again (my understanding that approval lasts for 6 months, then you need to reapply)
hope you can help

garred

I reckon so. I had to (waiting bout a year for build) but it was just routine and resign papers, etc. I think they are more concerned to see if your circumstances have changed ie: lost your job, but its just routine. Don't be worrying :cool: , never know your property might go up in that time.

Eurorunner

@Maggie797: you need to take yourself over to the askaboutmoney.com forum . I was in the same position as you a couple of months back - and having spent many hours on askaboutmoney, i am more confident in dealing with the whole process.

Having said that, its a bit difficult to get total satisfaction in the current market. I am not happy with the contract that i have and am at the mercy of the builders to a large extent - but this is the case for 99% of people. If you dont run with it, someone else will buy it. The plans i have - have a disclaimer basically saying that they can make changes as they see fit.

Anyways, check out askaboutmoney - and post specific queries that you have.