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Thank you. There is then no difficulty with what is proposed except that if you are obtaining a mortgage with your purchase two issues immediately spring to mind:
1) you will need to ensure your offer remains valid at least up to two weeks after the new proposed long stop date. Take care not to agree a long stop date which is beyond the expiry date in your offer without obtaining a written extension to your mortgage offer because you do not want to find yourself in a position where you are required to complete but have no mortgage offer any more because it has expired.
2) All incentives must be disclosed to your lender. The developer will therefore need to let you have a new incentives disclosure form which you can give to your lender. It is unlikely any new modest incentive will have any significant impact on your offer though if the mortgage is at the limits of what the lender is prepared to lend to you it is possible they may revise down the loan in line with the incentive offered - ie. if the incentive was worth say £500 it is conceivable that the mortgage loan may be reduced by the same amount.
Otherwise it is a question of ensuring you appreciate that you will be bound to complete on notice up to the point of the new long stop date so notwithstanding the above take care not to commit to too long a long stop date to ensure that you are not locked into a contract for too long just in case there are any changes to your life in the future.
Your solicitor will be able to agree a variation to the contract subject to your instructions.
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3) There is no approved form of practice in this respect. There is nothing stopping you requesting a higher rate of interest and similarly no obligation on the developer to agree a higher rate of interest. It depends how much the developer wishes to retain you as a buyer and a calculation on their part how likely you are to pull out if they do not agree. They will be mindful of the fact that you will have already incurred legal costs unless these were offered free as another incentive. By way of guidance if you were late in completing they would be entitled to charge you usually 4% above base rate (this is usual "contract rate" in the contract). Obviously this right does not apply but given the situation is that they are unable to complete this figure may be a useful yardstick by which to measure their offer and on which to negotiate if you consider you wish to try to improve their offer.
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