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Hi there,
I'm wondering if anyone can shed any light on exchange on contracts on a new build property where the property has actually still to be built.
The property is currently being built and expected to be complete by October\November.
The developer wants to exchange contracts by the end of June at which point I will have to pay a 10% deposit. The remained will be sought by a mortgage and a mortgage offer would be in place before exchange.
What would happen if the mortgage company was to inspect the property after it had been built and value it at less than we had agreed to pay. We wouldn't have funds personally to make up any shortfall.
Would we be able to get our deposit back, or would we have lost it?
Thanks
I'm wondering if anyone can shed any light on exchange on contracts on a new build property where the property has actually still to be built.
The property is currently being built and expected to be complete by October\November.
The developer wants to exchange contracts by the end of June at which point I will have to pay a 10% deposit. The remained will be sought by a mortgage and a mortgage offer would be in place before exchange.
What would happen if the mortgage company was to inspect the property after it had been built and value it at less than we had agreed to pay. We wouldn't have funds personally to make up any shortfall.
Would we be able to get our deposit back, or would we have lost it?
Thanks
