Paying a house deposit.

[Chuggy]

Have been considering buying a new- build house. Builder/developer is an LLP so if they go bust , I'll lose my deposit. Is there any way of protecting it?

[colin79666]

Check the new build warranty provider. At least in my case it covered if the developer went bust.

[Chuggy]

Thanks. What if the builder goes bust before completion?.

[Pothole]

Chuggy said:

Have been considering buying a new- build house.

Why, particularly?

NB: not looking for a fight or to tell you you're wrong, I'm just curious as it's not something I'd ever consider and I was discussing the subject with Mrs P the other day.

[colin79666]

Chuggy said:

Thanks. What if the builder goes bust before completion?.

Unless you are doing a self build you aren’t paying up before completion except perhaps some legal fees and deposit.

[MrBen1]

Chuggy said:

Thanks. What if the builder goes bust before completion?.

This is when the deposit cover that is part of many housing warranties kicks in - it covers the deposit until completion.

[Chuggy]

The builder is also the developer. Site of about 20 'retirement' type houses. Company is an LLP . Don't think they are members of nhbc.

[colin79666]

Chuggy said:

The builder is also the developer. Site of about 20 'retirement' type houses. Company is an LLP . Don't think they are members of nhbc.

There are others although nhbc is the biggest. Mine is under premier guarantee. You need to check this out, it’s also the sort of thing you can run by your solicitor.

[Ari]

Pothole said:

Why, particularly?

NB: not looking for a fight or to tell you you're wrong, I'm just curious as it's not something I'd ever consider and I was discussing the subject with Mrs P the other day.

Presumably because it's something he wants and he feels the price is fair. That's the normal reason for buying most things.

[h0b0]

Ari said:

Pothole said:

Why, particularly?

NB: not looking for a fight or to tell you you're wrong, I'm just curious as it's not something I'd ever consider and I was discussing the subject with Mrs P the other day.

Presumably because it's something he wants and he feels the price is fair. That's the normal reason for buying most things.

I think it is a fair question. Why would you buy a new car when you can buy second hand?

For me, the lack of maintenance for the first few years and the overall efficiency of the house was important. And, architecturally, it’s either old or new. Very little between 1900 and 2020 appeals. I understand rooms in 1970’s houses were bigger. I remember moving from my large bedroom in a 1970 house to a box room in a 1996 house. That’s not something I would do again so again I understand the question. But, I was able to buy new houses with rooms that were adequate.

Where I live, there is little advantage of buying a 1900’s house. My current house is in an established neighbourhood but was built brand new having knocked down the previous house. It’s energy efficient and has technology integrated. Simple luxuries like washing machine upstairs also are nice.

Having said all that, if I could buy a properly old mansion and modernize with out losing character, then I would. Is that possible in the UK? Probably not with listed building status.

[Flumpo]

Pothole said:

Chuggy said:

Have been considering buying a new- build house.

Why, particularly?

NB: not looking for a fight or to tell you you're wrong, I'm just curious as it's not something I'd ever consider and I was discussing the subject with Mrs P the other day.

I can tell you why we bought brand new, the area we wanted is very nice and is has been in the times top 10 places to live lists regularly. Our fiends live there too and it’s convenient for work.

Unfortunately the existing houses are all old fashioned in layout and design. I really couldnt go back to having 1 house bathroom, no dressing room or other luxury convenience that comes with modern design. The new houses were also much larger than the older designs in the village.

So by going with a decent builder who you don’t read about constantly in the paper next to sad faces, we got exactly what we wanted rather than compromise.

The next move if I have more money and time then I wouldn’t be against buying an older house and extending and modernising.

So I bought new as it provided the best return and lifestyle for my budget.

[Chuggy]

This is really wandering off the subject. My reasons for moving are private but entirely due to life changing circomstances following a major stroke. Of that I wish no more discussion.

I'm really trying to establish risks associated with paying money to an LLP.. I know there are deposit retention guarantee schemes applicable to landlords. Is there, I wonder, anything similar for builders?

[Pothole]

I realise it was OT, Chuggy, you were under no obligation to answer and apologies for the hijack. Thanks to the two of you who did answer - not exactly what I was expecting so actually interesting, thanks again. Ari: I asked the OP. You contributed nothing. Why not just ignore instead of being snippy?