Bought Off Plan....but Cant Afford It Now!!! Please Help!!!

amitabh1 · 24 October 2008 at 5:37PM

Hi everyone.

Please can anyone advise me in the situation i am in. Late 2006 I signed for 2 flats off-plan. I was told that I will be getting a 15% discount for each flat. This discount would be the deposit for the flats. The property club through which i was buying the flats made a bond arrangement in order to secure the discounts. I paid £1000 to reserve each flat. Another £1500 for the bond fee. And £1800 finders fee.

The flats are due to be complete in Jan 2009. The mortgage value will be £182000 - 15% = £155000. Taking my credit history in consideration Im looking at a high rate unfortunately. I assume monthly interest only repayments will be around the £1000 mark. Rental estimations are only £650-£700. This will mean a top up from myself of roughly £300 every month. Problem- cant afford this!!! The same flats in the area have dropped in price massively. At the time things were different, now alot has changed, i can barely pay my own mortgage.

Please can anyone advise if there are any routes out of this mess that ive put myself in. I rang the bond company, they said if i were to pull out, ill have to pay the bond value (£15000) to them. The developer isnt dropping the price. The property club has been dissolved- checked with compnies house.
IS THERE ANY WAY OUT FOR ME???

any advice greatly appreciated

ibby

EliteHeat · 24 October 2008 at 5:55PM

Out of interest, why did you sign up for two?

amitabh1 · 24 October 2008 at 6:16PM

i persuaded bro to buy one too....he's not sure if he wants to go ahead or not....

dopester · 24 October 2008 at 6:20PM

Double trouble.

The easy route to riches.

Take your medicine son.

kazwookie · 24 October 2008 at 6:23PM

Blimey

I would go and see a solicitor, what part would the property club have played in all this?

PasturesNew · 24 October 2008 at 6:28PM

The bottom line is you're probably completely stuffed and you (and your brother?) are both likely to be chased for the full amount, but you won't get a mortgage, so you'll have them repossessed before you even get them, then sold off cheaply - and then they'd come after you/your home to settle the difference. After that they can chase you for 12 years for the money.

So, your only chance now is to grab all your paperwork and read through it, see what it says. And get yourself a good contract solicitor to see if there's anything in there that can get you out of it. Maybe paying the £15k grand hit is the quickest/cheapest way out.

It's not looking good for you though.

amitabh1 · 24 October 2008 at 6:35PM

if i were to pull out and like you say they'll go after my house.....can they do more than a second charge??

sorry...who will be after me....i was thinking it'l be just the bond company....the developer surely can sell elsewhere if i pull out???

amitabh1 · 24 October 2008 at 6:38PM

Blimey....

The property club introduced the proposals to us....the main guy Chris doesnt answer my calls....his website www.thepropertytraders.com is no longer available, his company of the same name has been dissolved....im thinking of talking to developers again as they will be making a big loss too if i were to pull out....in the meantime i might have to take the house of my name....

stevetodd · 24 October 2008 at 6:45PM

amitabh1 wrote: »

if i were to pull out and like you say they'll go after my house.....can they do more than a second charge??

You are (as you know) in a real mess, if I were you I would take legal advice, whichever route you take to work through this it is going to take 1,000's so why not pay a few hundred pounds more to ensure you don't make another expensive mistake again.

From the limited info that you have given it looks to me that taking the 15k hit to not buy them is your best option. But I would make sure by using a solicitor, that this 15k is the end of it (if not you can sue the solicitor for professional negligence if he directs you down this path). Use a solicitor who has experience in this particular field, yes they will be more expensive but they will know what they are talking about, the last thing you need is someone just collecting the fee and believing all that is said/written, you need someone that can comment on the validity of what you have been told.

brit1234 · 24 October 2008 at 6:50PM

Your buying 2 flats to rent out and not to live in! :mad:

Sorry , no sympathy here. You created this mess, you have to live with it. I bet you weren't complaining when you were helping price out first time buyers and prices were still rising. Were you on your way to being a property Millionaire?

Buy to let is a major factor in creating this housing bubble, its time landlords took some of the punishment after all these years of socalled gains.

Sorry if i sound harsh but buy to let has down huge damage to this country by pricing out most first time buyer and forcing the rest to take out huge loans that they now can't pay. :mad:

What are you going to do when prices fall 50-60%?

:huh:

amitabh1 · 24 October 2008 at 6:57PM

brit1234...

sorry for the limited info....
the first flat was for me, second for bro....the house i live in is jointly owned by me and wife.
i was a total beginner when i signed up...i still am...i thought it was a good route to a second income...nowt wrong with that....my mistake was that i blindly went in this without kowing the full facts of buyitnow, etc....sorry if you seem hurt...

Bought Off Plan....but Cant Afford It Now!!! Please Help!!!

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