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Can't Complete New Build - Can't Cancel Either
plumduff55
Posts: 892 Forumite
Hi, I am writing this on behalf of my son and daughter in law.
They paid a deposit and signed the missives on a new build flat last March, they had a 90% mortgage in place which the bs agreed to hold for 1 year. They were hoping to move into the new flat on return from their honeymoon on August but the flat has still not been finished and they are now living with their in laws.
They have lost the 90% mortgage and are unable to secure a similar mortgage or one that is based on the original asking price, which they are contracted to pay no matter when the flat is completed. Their is a get out clause if the flat is not completed by August '09.
Their lawyer has written several times to the builder/developer who have threatened to sue son and dil if they do not complete purchase. Last week their lawyer wrote informing builder that they are unable to proceed as they are cannot obtain finance.
To date the builder/ developer have not replied.
I dont know if anyone can give me any advice/information that may help them but I just feel so frustrated and upset for them. They can't buy the flat but they can't get out of the sale! Hope someone can help, failing that let this be a warning to anyone thinking of buying a new build in Scotland, don't know if the system is the same in other parts of the UK.
They paid a deposit and signed the missives on a new build flat last March, they had a 90% mortgage in place which the bs agreed to hold for 1 year. They were hoping to move into the new flat on return from their honeymoon on August but the flat has still not been finished and they are now living with their in laws.
They have lost the 90% mortgage and are unable to secure a similar mortgage or one that is based on the original asking price, which they are contracted to pay no matter when the flat is completed. Their is a get out clause if the flat is not completed by August '09.
Their lawyer has written several times to the builder/developer who have threatened to sue son and dil if they do not complete purchase. Last week their lawyer wrote informing builder that they are unable to proceed as they are cannot obtain finance.
To date the builder/ developer have not replied.
I dont know if anyone can give me any advice/information that may help them but I just feel so frustrated and upset for them. They can't buy the flat but they can't get out of the sale! Hope someone can help, failing that let this be a warning to anyone thinking of buying a new build in Scotland, don't know if the system is the same in other parts of the UK.
Debt free - Mortgage free - Work free ( in that order 
)
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Comments
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I can't help on the legalities I'm afraid, but I do hope there is a change in the law as to how builders can get away with this sort of behaviour. It seems to me totally unreasonable that they are trying to hold your son and his wife to ransom, when they didn't deliver the flat last August when your son had finances in place to proceed.
I think there needs to be concise wording in agreements so that if the new build isn't completed by a certain date, and the buyers mortgage offer and way of paying is no longer available due to this delay, then the builder has no right to claim against them.
I wish your son and his wife all the best OP
"Life is difficult. Life is a series of problems. What makes life difficult is that the process of confronting and solving problems is a painful one." M Scott Peck. The Road Less Travelled.0 -
Are builders still working on the flat?0
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Did they take the solicitors recommended by the developer?
This is a frequent issue where people end up in the cack because there has been no one looking out for them legally.0 -
There is very slow progress to the flats, the external and internal walls are built but there is no roof as yet. I know that legally the builders are in the right but morally it is wrong. I don't know if this an empty threat by the builders, if not it could leave ny son and dil thousands of pound in debt with nothing to show for it.Debt free - Mortgage free - Work free ( in that order )0
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poppysarah wrote: »Did they take the solicitors recommended by the developer?
This is a frequent issue where people end up in the cack because there has been no one looking out for them legally.
No, they have their own solicitors.Debt free - Mortgage free - Work free ( in that order )0 -
Well did they not put in any clauses to protect them if the property wasn't finished?0
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poppysarah wrote: »Well did they not put in any clauses to protect them if the property wasn't finished?
Their is a get out clause if flat is not completed within 1 year of original date (Aug '09). When they commited to buy the flat I don't think anyone realised the impact the credit crunch and recession were going to have.Debt free - Mortgage free - Work free ( in that order )0 -
Did it not strike anyone as sensible to have the get out clause in line with the mortgage offer?
They should be going back to their solicitor and getting them to sort out the mess.
If it's not going to be finished by August then do they need to worry about the money?0 -
poppysarah wrote: »Did it not strike anyone as sensible to have the get out clause in line with the mortgage offer?
They should be going back to their solicitor and getting them to sort out the mess.
If it's not going to be finished by August then do they need to worry about the money?
Yes, with hindsight it would have been sensible to have the get out clause in line with the mortgage offer. My son and dil are both 24 years old and are inexperienced with house buying. They are getting experience the hard way.
If I knew the building would not be completed by August then there would be no need to worry, but I just don't know.
The original date for completion was August, then September, then November, then January, then February, now April.
IDebt free - Mortgage free - Work free ( in that order )0 -
I suspect they need to get on with their lives until either august rolls round or they are sued before then by the developer.
Unless they can save/earn the difference they need before then?
Life's not nice sometimes but they'll get through it.0
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