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

Blah99

sdooley wrote: »

i.e.
exchange
Punter £1,500 --> bond company £15,000 --> developer
completion
Punter £155,000 --> developer £15,000 --> bond company

So where's the property club and the 15% reduction they offered in all of this?

The entire situation seems bizarre. You might have an option here to sue the property club for professional negligence on the grounds of special knowledge and responsibility, but just as everyone else here has said - speak to a solicitor.

amitabh1

The property club was run by a mortgage broker who helped a mate of mine. I got to know him this way. He told us of this 'opportunity' of buying a property without paying a deposit. The original price of the flats were £182k each. minus 15% leaves us with the buying price of £155k. that was the reduction.
the club has now been dissolved....and he aint answering calls...seeing a solicitor next week...

brit1234

amitabh1 wrote: »

The property club was run by a mortgage broker who helped a mate of mine. I got to know him this way. He told us of this 'opportunity' of buying a property without paying a deposit. The original price of the flats were £182k each. minus 15% leaves us with the buying price of £155k. that was the reduction.
the club has now been dissolved....and he aint answering calls...seeing a solicitor next week...

These discounts are commonly known as 'gift deposits'. The lenders have now effectively stopped these schemes and won't lend with them. They are also used to distort land registry figures higher which helped inflate the housing bubble.

Get legal advise and find any way not to buy even if it costs you. Because if you do buy you will very hurt by negative equity.

unite79

Did the broker also insist you use his recommended solicitor, if so you do have an angle, I have just sorted something similar out for a friend's sister - I assume the property club also said they would sort the Finance out on your behalf - THIS IS A MASSIVE PROBLEM.

amitabh1

unite79 wrote: »

Did the broker also insist you use his recommended solicitor, if so you do have an angle, I have just sorted something similar out for a friend's sister - I assume the property club also said they would sort the Finance out on your behalf - THIS IS A MASSIVE PROBLEM.

YES...I WAS TOLD TO USE HIS RECOMMENDED SOLICITOR....the property club were the ones who sorted the bond agreement too.
what happened with your friends sis????

amitabh1

brit1234 wrote: »

These discounts are commonly known as 'gift deposits'. The lenders have now effectively stopped these schemes and won't lend with them. They are also used to distort land registry figures higher which helped inflate the housing bubble.

Get legal advise and find any way not to buy even if it costs you. Because if you do buy you will very hurt by negative equity.

thanks for the advice mate, seems there might be a way out now, hopefully. ill gladly pay a solicitor if it helps. cant believe how stupid i was.

Trollfever

Bankruptcy Board can be found ↑↑↑↑↑↑↑↑↑↑↑

sdooley

And the recommended solicitor knew not to ask any of the questions where you would have given the information that would have forced him to advise you against it and/or report the deposit to the lender if it all went through. Bloody cheats, a disgrace to the profession.

Conveyancing fraud is pushing up the insurance premiums of all solicitors firms who deal in conveyancing - some honest firms are being refused cover and have to close just because they are too small - these dishonest firms will be caught by the dropping tide of house prices and will be forced to the wall by a tsunami of claims - being insured they have 'deep pockets'.

The other crook likely involved is the surveyor who gave you the valuation - you did get a valuation didn't you?

Basically I'd think your options are:

wriggle out of the contract with the developer
sue the solicitor
sue the surveyor
wriggle out of the bond arrangement
or more realistically a combination of all four

you won't get anything much from the person who did all the selling - unless he was regulated in some way and/or insured which I doubt - to think earlier this year the Tories were opposing regulation of mortgage sales - madness.

Given the number of different claims, and that some bodies have already gone bust, you'll really need some legal advice otherwise everyone will just point at everyone else and say 'his fault'. Plus you're a bit to blame for being greedy, so approaching them personally they'll just try and roll over you. A judge who's just had a morning evicting tenants of buy-to-let entrepenuers is not going to look kindly on your situation unless you get someone to find a loophole to get you out of this.

unite79

Ok and the next thing I am going to guess at Random as it may sound - You then recieved a letter from another solicitor saying they had been instructed to deal with all the work and your file had been passed across - Asking you to sign agreement - Hope you did not - but if you did not the end of the world...

neas

I wonder what woulda happened if prices had kept rising .

We would be discussing with op how much he can earn on his increasing asset wouldnt we? :P

Ahhh such is irony.