Advice on buying a brand new home > General discussion

When do you pay

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Caroline81:
Sorry in advance if this is a really basic question, I know absolutely nothing about the house buying process.
My mum would like to buy a new house and will be selling her current house to my brother, who is a first-time buyer and in the process of saving for a mortgage deposit.

She owns her house with no mortgage so once it's sold, she'll be a cash buyer.
She's seen a new build she likes which has a completion date of April/May 2023 and by then she would have all the funds available, so when does a cash buyer actually have to pay the full price of the house?
Is it on completion of the house?
I've read a 10-30% deposit is required up front so if the house she likes is £300,000, can she secure a house until 2023 with a 30% payment and then pay the rest on competition?

Thank you in advance

Matron:
I can only tell you what we had to pay. When we chose our new build home we paid a reservation fee of £250 which we were told would be reimbursed if we didn’t go ahead. Our deposit (£20,000) was supposed to be paid 6 weeks later but like your mum we were cash buyers & had to rely on our buyers paying the deposit for our house. I think it was about 8 weeks before we paid that. The remaining money for our new build was paid on the day we completed and moved in. Hope that helps. Ours is a Bellway home

Caroline81:
Thank you so much, that really helps. The house my mum likes is also a Bellway so that's really useful  :D

 
--- Quote from: Matron on April 16, 2022, 06:23:19 pm ---I can only tell you what we had to pay. When we chose our new build home we paid a reservation fee of £250 which we were told would be reimbursed if we didn’t go ahead. Our deposit (£20,000) was supposed to be paid 6 weeks later but like your mum we were cash buyers & had to rely on our buyers paying the deposit for our house. I think it was about 8 weeks before we paid that. The remaining money for our new build was paid on the day we completed and moved in. Hope that helps. Ours is a Bellway home

--- End quote ---

Anna96:
There is no need for you to wait for an inspection, appraisal, or underwriting. Even though an inspection is not necessary when purchasing a property with cash, it is a good idea to obtain one to ensure that your new home will not require any costly surprises. Home sellers normally prefer cash purchasers since they don't have to deal with financing timelines, so your cash offer to buy a home is more likely to be approved.

New Home Expert:
When you buy a new home, on the day you RESERVE you pay a reservation fee, which is refundable up to a point (less their admin charges) if you do not proceed.

Then you will normally be required to pay 10% of the total purchase price on EXCHANGE of contracts (after which you cannot back out without losing this) within usually 28 days or reservation.

As the home will not even be competed for a year, you should be able to reserve it on an 'early bird' basis but this only means you have first refusal once the price is released.

I would warn against buying any "retirement flat" as these are overpriced, have sky high management charges and are difficult to sell.
See my web page Retirement homes

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