PROBLEM

“We reserved a new-build, off-plan, home at a local Redrow development at West Malling in Kent earlier this year, after accepting an offer on our house.

During the construction, Redrow offered us a variety of upgrades such as nicer kitchen units, fancier sanitary ware etc, to which we agreed. These decisions had to be made by certain stages in the build or you lose the option. On this basis, we paid around £4,000 for our upgrades, but since the sale fell through, Redrow has told us we won’t receive any of this back.

Further to this, they are marketing the house at an increased price compared with the other identical homes in the development, to take into account the upgrades that have been installed. We have obviously lost the £500 reservation fee, but where do we stand in terms of the £4,000 we have invested in the house, whether they sell it or not?”
MS, Kent

ANSWER

Given how often house purchases fall through, it’s a brave person that invests £4,000 in a home that they don’t own.

Initially, Redrow stuck to the line that all your payments were non-refundable. “Once products are ordered and paid for, cancellations and refunds are unable to be accepted and this is made very clear through the terms and conditions which buyers are required to agree to before being able to make any MyRedrow (upgrade) purchase,” it said.

However, just as we asked for a copy of the terms and conditions with a view to getting a lawyer to look at them, it emerged that the local sales manager had decided that you would, in fact, be getting your £4,000 back, and this has now happened. It may be coincidental timing, or not.

Other Redrow home purchasers may want to reflect on this experience. We would advise buyers to wait until they exchange contracts before paying for any upgrades, otherwise you leave yourself open to losing any payments made.

https://www.theguardian.com/money/2016/dec/05/redrow-new-build-upgrades-cost-refund