Paid deposit for off-plan and cannot complete...HELP!

MX5huggy

Sorry if I am being dumb, but 58ghia, are you saying you have got the flat for 52k (+the 9.5) or they require you to pay 52k because you are not buying the flat?

puddy

thats what it sounds like doesnt it... why is that a set back? is it because you dont want the flat now?

58ghia

We put down a deposit of £9500 on a property at £186500

When it was almost complete we asked a company to value the property they said £155,000 this was before the drop in the market. The company said this was its true value at the height of the market
We had a mortgage in place but due to the delay in the build had to find another.

Then working on the £186,000 value we had our finances ready to fulfill the deal. When the property was valued at £155,000 we couldn't go ahead as we had to find the 20% deposit and the difference between £186,000 and £155,000.

Now the developers have sold the property at a price of £144,000 and want £52,000 compensation on top of the £95000 deposit.

They tried to get us to use one of the companies they use to value the property. Which would have bumped up the ''value'' considerably.

Now I need to find a Lawyer to give me some advice and also find £52,000. Its in Scotland

GDB2222

jenner wrote: »

thats what it sounds like doesnt it... why is that a set back? is it because you dont want the flat now?

I think it's a setback because they are now over £61,000 out of pocket, and they have no flat. They have lost their deposit of £9,500, and they are being required to pay the builder £52k on top of that, to compensate the builder for his loss. If they had at least bought the flat, they might now be showing a similar paper loss, but at least they would have somewhere to live.

MX5huggy

My simpathies then gina, how have they come to £52000?

I recon it should be £186500 - £9500 (the deposit you paid) - £144000 (the price they sold it for) so £33000. Plus some fees maybe but not £19000 worth.

But as you say you need a lawyer.

Look on the bright side if you had got it for the orginal price you would have already lost £42500 and who knows how much in the comming months!

elspeth240

MX5huggy wrote: »

My simpathies then gina, how have they come to £52000?

I recon it should be £186500 - £9500 (the deposit you paid) - £144000 (the price they sold it for) so £33000. Plus some fees maybe but not £19000 worth.

But as you say you need a lawyer.

Look on the bright side if you had got it for the orginal price you would have already lost £42500 and who knows how much in the comming months!

I agree, where are they getting an extra 52k from. You need to get your solicitor to ask them to show the exact calculations. Some will be interest of course but they need to deduct the £9,500 deposit that you initially gave them. Don't give up hope though, see this through to the very end, if they do take you to court I find it very difficult to believe that any judge in the land would make you pay them anywhere near the full amount (hopefully nothing as they've already had a substantial deposit). This would financially ruin you, it is just eating into the builders profits.

pinkshoes

I don't understand the £52k either.

You agreed to buy it at £186500, they then sold it at £144000, so £42500 less that you originally agreed to pay them. You've already paid £9500 of that, so you should owe them £33k.

Can you declare yourself bankrupt?

I don't see why you should have to pay them £52k. Tell them you'll agree to either £33k, or you'll buy the flat for £144k and pay the outstanding balance to them at £500 a month.

Did you sign a release form so that the flat could be sold to someone else?

elspeth240

Who are the builders by the way? I have emailed you details of a good conveyancing solicitor in Scotland. Good luck!

barrooo

I've never bought off plan, but it seems very unfair, in terms of a contract, that a flat can be completed 18 months late, and the contract is still valid.
I could imagine giving a couple of months leeway to account for unseen issues, but 18 seems a bit rich.
I
know if prices had kept rising there wouldn't have been an issue, but it seems in these cases the buyer has all the risk i.e. the developer get the price regardless of completion time

t1gger

In an off topic and unhelpful manner, could I ask what the advantage is of buying off plan?

I don't understand how someone could commit to pay so much money for something they have never seen, there must be substantial advantages?

Sorry, newbie house buyer here