selling on prior to completion

[Ravima]

I do not know if this has been raised/discussed before. If it has, apologies for taking up space and could someone point me to the thread.

I was thinking of buying in phase 1 of a new delevopment, then selling on either before full completion of the house, or before making the final payment to builder.

question is, can builder/developer prevent this and how do I stand with stamp duty payment. Must i pay it, or the next buyer or both?

 

[MOB]

It is difficult for the builder to prevent this, and it is certainly common enough; however, many builders' solicitors (including myself) will include a condition in the contract expressly forbidding this. Even with this condition in the contract, I have some doubts about the practicalities of enforcing it.

 

[mo3art]

Hi Ravima,

This has a number of potential problems, not least being the clause in the purchase contract expressly forbidding it. There is a massive risk factor involved, considering you are tying yourself into the purchase of a property and if you are unable to find an alternative purchaser, you are then responsible for the property you signed contracts on.

The scheme that you have depends on a rising property market and whilst at the moment the property market certainly seems to be rising, that cannot be guaranteed for the future. Therefore, you cannot be guaranteed a return on your investment.

As MOB has mentioned, many builders solicitors expressly forbid this action. I'm sure it increases the costs for them when they have to deal with 2 sets of contracts on the one property etc. What would your increased legal charges be?

Your finances might be better served being put to another use IMHO

 

[Ravima]

there would be no problem if it could not be done and I can afford the property. the reason for asking was that if there was a few quid to be made, before completion, it migth be handy to pay for the summer hols etc.