Best way to set up buying new dev and selling house at same time.

[Aladdin]

Just gone sale agreed on a new-build, due for completion in the summer and based on some great advice here, I've decided to put current PPR on the market. Originally planned to wait until I was in the new place before selling and find some way to bridge the temporary gap in funding, but that seems too stressful and risky.

So my question is, ideally how should I set it up closing date for my own to release the sale equity to complete the sale on the new one, and at the same time not be homeless in case of any delays on the new build? Since i'd imagine developers need more leeway with these things than something already completed.
Or is that possible at all? My head is spinning.

 

[_OkGo_]

Since i'd imagine developers need more leeway with these things than something already completed

Not answering your question specifically but we were 5 months over the initial completion date when we purchased a new build ~5 years ago. We expected a month or 2 but 5 was a stretch.

Having a plan for where you might live if you sell your own PPR and there are delays in the new build is essential.

 

[Leo]

So my question is, ideally how should I set it up closing date for my own to release the sale equity to complete the sale on the new one, and at the same time not be homeless in case of any delays on the new build?

As above really. Are the vendors aware of your need to sell? Given the demand for property now, they may decide to sell to someone else who is ready to close if you are not in a position to close at a time of their choosing.

Remember, 'sale agreed' is not binding, either party can walk away at any time.

 

[NoRegretsCoyote]

due for completion in the summer

I've never known of a new development to be completed on time.

In your shoes I would have everything ready with the estate agent (ad text written, asking price agreed on, photos taken, etc) so you can put it on the market at a day's notice when you're actually confident that you'll be able to move in to the new build.

 

[Aladdin]

As above really. Are the vendors aware of your need to sell? Given the demand for property now, they may decide to sell to someone else who is ready to close if you are not in a position to close at a time of their choosing.

Remember, 'sale agreed' is not binding, either party can walk away at any time.

Technically we don't need to sell to complete, and can bridge the gap in-between with temporary alternative funding if needs be, but it's messy - not least if the market takes a dive! Renting in between sale and completion would be v tricky given schools, pets and work (chickens too!).
I'd thought a new-build might be less complicated, but I'm not sure how to align both sides of the process, if it seems delays are a given.

 

[Aladdin]

I've never known of a new development to be completed on time.

In your shoes I would have everything ready with the estate agent (ad text written, asking price agreed on, photos taken, etc) so you can put it on the market at a day's notice when you're actually confident that you'll be able to move in to the new build.

OK, so when I'm more certain of the new-build completion date (is that typically included and binding in the sale contract?) then I should look to set closing date on my own sale for a little after completing on the new one to be safe?
I suppose if I can be more certain of a buyer on mine with contracts signed I can take the risk of eeking out the last few bob to complete on the new build before mine closes, and be back in the black after.
Back to the original plan so....

 

[Leo]

Technically we don't need to sell to complete, and can bridge the gap in-between with temporary alternative funding if needs be

That certainly makes things easier if you're not dependent on a mortgage where approval was based on the assumption of selling the existing property. As you say though, can be messy and will add to your costs.

I'd thought a new-build might be less complicated, but I'm not sure how to align both sides of the process, if it seems delays are a given.

All depends on the builder and how flexible they are. From their perspective, once something is ready to go they usually want it sold ASAP, the longer they wait, the less the more financing costs eat into their margin.

If you're in an area where property is in high demand and your property is in good condition and your title, compliance, planning etc. is all in order then you should be able to turn around quickly so long as the purchaser is also motivated to close.

 

[Aladdin]

That certainly makes things easier if you're not dependent on a mortgage where approval was based on the assumption of selling the existing property. As you say though, can be messy and will add to your costs.

Yes, we factored in selling the existing property into our calculations for the application, but don't necessarily need to do so in order to complete on the new one, though wouldn't want to hold on to the old one either, it's just a question of timing.
So would mortgage fund release be contingent on providing proof to the bank of existing PPR being sold before drawdown? That's a whole new headache I hadn't anticipated!

 

[NoRegretsCoyote]

OK, so when I'm more certain of the new-build completion date (is that typically included and binding in the sale contract?)

I've never bought a new house so have no idea! I presume your contract has some clause where costs escalate if you don't pay up when the house is ready. But this might be cheaper than living in a hotel for a few weeks.

As @Leo says it depends on your house and location. A friend of mine bought new build a few years ago and sold his old house quite easily as it was the same house as all 200 others in the same estate. If you own a commodity you will find a buyer quickly once the price is right.