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Hi Chaps,
We're buying a new build, for which we have to give a 1%'ish deposit when we sign the missives (contract in Scotland).
What happens to that deposit? Do we have it returned when we complete? Or does it come off the house price, so we need a slightly lower mortgage? Or does it come off the legal fees for our solicitor (As they're taking the money from us) and then they pay the left over amount back to us?
Can't find anything online that tells us what happens to the deposit once it's paid....
Cheers
Ricks
I'd ask
our solicitor
When we bought ours new back in 1992 it came off house price.
Already asked, but out of office at the moment, and I'm going through some budgetty stuff today - so was looking for some experience from chaps on here.
Reading the missives, it looks like:
- We pay our solicitor
- Our solicitor pays a 'solicitor's cheque' to the builder's solicitor
- The deposit comes off the final price of the house
Essentially, we're just paying some money early.
That's how it looks
What's confusing me is our builder stated to me that we reclaim the money from our solicitor. Which would leave us out of pocket until after the contact is concluded.
It's all a bit weird to me, and could easily be simplified.
Not wishing to piss on your fireworks, but have you checked what life expectancy is being built into the new builds?
Scottish-land might be different, but certainly in England and Wales there are currently no regulations in force for expected longevity and currently, house builders/developers are speccing for 50 years. Which is, as you're aware, is only two mortgage terms.
Just a thought, since it's a massive purchase with lots of associated loan interest...
Considering I'm only likely to live on the house for 10 years, I really don't care if the life is set to 50 years. My mortgage will be paid off in 15 years anyway, so not at all bothered.
It's also a bit of a weird statement, what is the '50 years' referring to? Bricks and mortar? Windows? Roofing? Floors? Electrics? Has anyone owned a house an in 50 years not done any repairs?
Preowned homes are a good example of a triggers broom. Which isn't a bad thing, its just normal.
But to slate new build because they'll 'wear out' is just odd.
From our point of view what we want is the least amount of maintence we need to do as possible to keep the house in good shape.
We've picked a very small development with local builders who have very good recommendation from locals and those already in the homes.
Buying a poorly built home is just a bad decision, but its not driven by whether it's new build or preowned, its driven by who built it, the quality of the contractors, materials and the land used.