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Stuart J
Stuart J, Property Solicitor
Category: Property Law
Satisfied Customers: 24625
Experience:  Senior Partner at Berkson Wallace
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My partner and I are buying a new build house, we've payed a

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Hi, my partner and I are buying a new build house, we've payed a reservation fee of £500 and signed a piece of paper to agree the price. They've emailed and said due to material cost we need to give them an extra £12K which will increase the price of the property which we hadn't agreed. Is there anything we can do to fight this?
JA: What steps have you taken so far? Have you prepared or filed any paperwork?
Customer: We got our contract this week but it hasn't been sent to us to sign it yet
JA: Where is the house located?
Customer: Camblesforth, north yorkshire
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: Not that i'm aware of but happy to answer any questions

Hello. Thank you for the question. It is my pleasure to assist your with this today.

Please bear with me and I will be online and off-line from time to time and therefore, may be delayed getting back to you. You will receive an email when I reply.

Who has asked for the extra £12k?

and you have already agreed to the sale price?

Customer: replied 17 days ago.
We're buying a new build from an organisation called Willow Developments and we have a signed reservation form where we put £500 down to reserve the house at 224,950 and they've said due to materials they need to up the house price by 10% but are asking us for 5% and they do the other 5%. We have the reservation form and a text from the owner to say they won't go above 225k.

They are at liberty to treble the price if they like at any time before exchange of contracts.

But if there is any change of price and you don’t want to go ahead at that price they are obliged to give you the GBP500 back.

In the last three months, the price of wood has quadrupled and other building materials have increased dramatically.

They are putting it down to the lack of lorry drivers, Covid and Brexit.  It has been well publicised.

So that’s the reason,

But the reason doesn’t affect the answer.  It really comes down to whether you want to pay another 11 grand for the house or not.

It also comes down to whether they would be willing to absorb it in total, in order to get the sale.

Customer: replied 17 days ago.
Our house is built, we're due to move in in 6 weeks time, and they don't need any wood for our property, they're fitting all of the interior appliances etc. So we do we need to pay that if hour house is built?
Customer: replied 17 days ago.
i understand that other properties on the site need more materials as they've not been built but ours has

If you have exchanged contracts they are stuck with the price.

If they haven’t exchange contracts than they can charge what they like and you are at liberty to walk away provided they refund your deposit.

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