At pre-reservation stage, you will be shown the details of the appearance and location of your chosen new home. Once this has been done, you will be required to complete a reservation form and pay a reservation fee in order to secure it.
Until you pay the reservation fee of £500, there is nothing stopping somebody else snapping it up. After your reservation fee has been paid, your new home is reserved for six weeks before we expect to exchange contracts with you. The reservation agreement will set out the key terms of your home purchase, including the reservation period, purchase price and other very important information.
To pay your reservation fee, you must be in a position that enables you to proceed with the purchase of your property. If you have not sold your current home and are not in a position where receiving a second mortgage is an option, your reservation fee cannot be accepted. As a first time buyer, your mortgage does not have to have been approved in order to pay your reservation fee.
Throughout this period, your new home will be withdrawn from sale and it will not be subject to an increase in price. The reservation fee and deposit are then deducted from the price of your home.