urgent plz help advice needed

azzik

I invested in a 1 bedroom apartment in the 20:20 Developments in Leeds through Morris Properties. At the time, they obviously over-priced the apartments, but being 1st time investors fell for their selling pitch. We got the apartment because the incentive of 15% discount was our main interest. We had to pay the reservation fee, then we pay 2% of the gross price. We then pay a further 5% to them. At completion, they were supposed to put the 8% in, but they now want me to put that in as well, which I cannot afford to do right now, as I did not plan that I would have to pay more money.

I was getting concerned that the solicitors started to disappear one by one, and no-one were willing to represent me. I contacted Morris Properties on many occasions but they kept re-assuring me that everything is just fine.

I was rushed into signing the contract in the first place, where I received no help from my solicitor at the time. Morris picked this solicitor for everyone as they said they would like to deal with one solicitor. Instead, it was as though they were acting on their behalf, telling me that I would lose all my money if I did not sign and return my contract ASAP. I was being pressured, so I did not read the contract properly and sent it off. I know I was a bit stupid and have ended up paying 11 grand in total.

They have now turned around and told me that I will lose the flat, all my money and be prosecuted if I do not proceed with the completion.

I would appreciate it if you can get back to me as soon as you can with any advice as I am worried and do not know what to do. The flat has fallen in value I don't mind losing my deposit if I have to but they have said that I will have to pay the difference on what it sells for compared to the purchase price. I cannot afford to pay extra 8 per cent and am worried if I do buy it what if rent does not cover the mortgage. What if I cannot even get a mortgage. I have signed the contact but we have not exchanged and I have not got a mortgage lined up.
Please help I am worried.

AMILLIONDOLLARS

you need to seek legal advice urgently! The solictors recommended by the developers where are there? If they are now refusing to deal with this sale or if you feel they have been working for the developer all along, you will need to report them to the law society.
Demand to see the senior partner of law firm and put forward a formal complaint. As regards to completing on the property, we have no way of really advising you as we do not have sight of your contract, youy other alternative is to employer another solicitor on your behalf. Also an appointment with the Citizen Advice Bureau would not be a bad idea. By the way how much money are we talking about here?

AMD

mpsavuk

Sorry to hear of your predicament. If it was me i would make the sensible business decision and just walk. You may lose your deposit but you will regain your sanity and no more worry. Lesson learned .

All IMHO of course.

wellandpower

If this is a genuine post, then you really are in a muddle.

I would guess you are in trouble and you may have no way out. I think you need a good solicitor. Probably a magical one.

You might like to try settling with them - see what the solicitor says. It will cost you a lot though.

This I am afraid is what happens when you are greedy. No such thing as a free lunch.

If your not rich you may want to make your next step asking about bankruptcy in another forum, get all the details together e.t.c. and then at least you are prepared for the worst.:money:

Richard_Webster

I have signed the contact but we have not exchanged

If you haven't exchanged then you are not legally committed. If you thought they were giving you a 15% discount then your solicitors should have taken the matter up on your behalf and asked about the other 8%.

Did you pay the 5% to the solicitors or direct to the builder? If to the solicitors then you can ask for it back if you have not exchanged contracts.

The previous advice about complaining to the senior partner is also relevant. if you have flat that you were not advised properly then you have a legitimate grievance.

Troubled_Joe

mpsavuk wrote: »

Sorry to hear of your predicament. If it was me i would make the sensible business decision and just walk. You may lose your deposit but you will regain your sanity and no more worry. Lesson learned .

All IMHO of course.

Walking away would not just lose the deposit because as the OP was advised he would also be liable for a shortfall.

Can you give more info on the 8% contribution because you may possibly be able to treat their non-payment as a repudiatory breach which would leave you with no liability and also your money back.

Troubled_Joe

Richard_Webster wrote: »

If you haven't exchanged then you are not legally committed.

But surely he'd be contractually obligated on the basis of the initial agreement.

Obviously we haven't seen it but I'm sure the developer would've covered themselves. It'd be back to the basic principles of contract law then and putting back the wronged party in the position they would've been but for the breach.

clutton_2

morris properties are well known for this - go to https://www.singingpig.co.uk for more stories

Tassotti

azzik wrote: »

I invested in a 1 bedroom apartment in the 20:20 Developments in Leeds through Morris Properties. At the time, they obviously over-priced the apartments, but being 1st time investors fell for their selling pitch. We got the apartment because the incentive of 15% discount was our main interest. We had to pay the reservation fee, then we pay 2% of the gross price. We then pay a further 5% to them. At completion, they were supposed to put the 8% in, but they now want me to put that in as well, which I cannot afford to do right now, as I did not plan that I would have to pay more money.

I was getting concerned that the solicitors started to disappear one by one, and no-one were willing to represent me. I contacted Morris Properties on many occasions but they kept re-assuring me that everything is just fine.

I was rushed into signing the contract in the first place, where I received no help from my solicitor at the time. Morris picked this solicitor for everyone as they said they would like to deal with one solicitor. Instead, it was as though they were acting on their behalf, telling me that I would lose all my money if I did not sign and return my contract ASAP. I was being pressured, so I did not read the contract properly and sent it off. I know I was a bit stupid and have ended up paying 11 grand in total.

They have now turned around and told me that I will lose the flat, all my money and be prosecuted if I do not proceed with the completion.

I would appreciate it if you can get back to me as soon as you can with any advice as I am worried and do not know what to do. The flat has fallen in value I don't mind losing my deposit if I have to but they have said that I will have to pay the difference on what it sells for compared to the purchase price. I cannot afford to pay extra 8 per cent and am worried if I do buy it what if rent does not cover the mortgage. What if I cannot even get a mortgage. I have signed the contact but we have not exchanged and I have not got a mortgage lined up.
Please help I am worried.

First post..new build bad...hmmm.....

Trollfever

Some info on Morris Properties:

http://www.bbc.co.uk/insideout/content/articles/2007/10/09/yorkslincs_student_housing_s12_w4_feature.shtml

Tassotti

Although I 'feel' for 'investors' who have invested inevested in these properties, I would say....'Do Your own research yo LAZY idiots'

Lose your money...Fine

Where are they now...sitting next to me on the beach with a wad of cash

Tass