Can't Complete New Build - Can't Cancel Either

hethmar

I feel very sorry for your son and his wife. They are only youngsters and this could blight their lives for years to come. Is there anyway they could renegotiate with the builder? Wishing them the best of luck.

ILW

I know its not any help, but I really cannot understand why people buy a property that is not even built. I just don't get it. Can someone please explain it to me.

hearts

A couple of points.

1. They shouldn't worry to much, I have not heard of any cases where civil proceedings have went ahead.
2. For those saying "Did it not strike anyone as sensible to have the get out clause in line with the mortgage offer?" You may be right but the way this couple went is the way it's done. So it was not their fault.

This question has come up before, and as has been said by others before, it may be worthwhile getting a contract lawyer to look at the paperwork. I would wait though, to find out what exactly is going to happen, if anything. No point paying out money just yet.

On the other side, which has also been pointed out by others. For a number of years people were buying "new builds" to flip. They would put down a minimal deposit wait a year or so till the property was built and then sell for a healthy profit. Not once did the builders try to claim the increase ;-)

plumduff55

They have tried to renegotiate the price but the builder has refused.

plumduff55

ILW wrote: »

I know its not any help, but I really cannot understand why people buy a property that is not even built. I just don't get it. Can someone please explain it to me.

I have known several friends and family who have bought new builds and all have had to sign the missives at beginning of purchase which means they are then contracted to complete no matter what. As far as I know this is the way it is done in Scotland - I'm sure my son and dil are not the only ones in this situation.

Mary_Hartnell

What is the difference in Scotland between a young couple putting a deposit on a nice new sofa at Land Of Leather and a nice new flat?

With a bit of luck they will be able to buy a similar flat from the builder's receiver. (but until he refuses to pay someone important nobody wants to crystallise their losses by petitioning for bankruptcy).

What is the status of the building company - now tell me it is the 100 GBP subsidiary of a head office in the Caymen Islands
[Actually if it was they might have grounds for claiming on the Solicitors negligence policy].

Let us know how you get on.

plumduff55

Son and dil have been getting on with their lives but the stress is beginning to show.

They are lucky to be able to live with dil's parents but this means son has a 3 hour daily commute to his work - he works 60 hours each week plus travelling time and I can see the exhaustion in his face.

They are both in their first jobs after long university courses and instead of enjoying their new married life they are actually thinking they may have to go bankrupt!

It is unbelievable - I knew when I posted this thread there was really no answer but I just feel so frustrated for them.

poppysarah

If before August the flat is finished and the builder sues then yes bankruptcy is a possible ending. However it's not the end of the world.

Is there no way they can move closer to his work? If they were spending more time together then life would not be so bleak.

SouthCoast

My son and dil are both 24 years old and are inexperienced with house buying.

Which is why they employ a solicitor to protect their best interests.

http://www.scottishlegalcomplaints.com/home.aspx

SkipE

plumduff55 wrote: »

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.

Speaking from experience this is the sad reality of it. We paid the deposit on a flat by the time it was completed (over 2years later) we couldnt get a mortgage. Even the house builders financial services people couldnt find us a mortgage. We had no money to complete.

We eventually agreed a payout. We are thousands of pounds in debt with nothing to show for it all because we signed a piece of paper. If we had known we would never get another mortgage offer, well things would have been different. The house builder on the other hand has a lovely flat its renting out till the economy picks up. No losers there then.

Hindsight is a wonderful thing.

Make sure you Son and DIL have an excellent solicitor. We did and Im sure if we hadnt of done we would be much much worse off than we already are. Good luck!!!