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

plumduff55

poppysarah wrote: »

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.

When they lost the 90% mortgage they were still hopeful to obtain another mortgage and complete the sale - they have been saving every penny in the hope they would have enough for an 80%mortgage, but because of the drop in the flat valuation even this will not be possible.

It is only in the last fortnight that they have come to realise it is not going to happen.

I think that they should try and look for a rented flat but understandably they are afraid to jump into anything at the moment

bluejake

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.

Because property prices only ever go up, they aren't making any new land, immigration means prices will only ever go up, this is a crowded island, the green belt and planning, there is a shortage of houses, more people live alone, people must get used to a world where they will never have a chance to own their home, woman working....hurry, hurry, don't miss the boat....

Buying a flat off plan was a surefire way of making fat profits for no effort and little risk...

Only last year you would be shouted down and told to post in one thread only if you wanted to suggest that people asking for advice should consider what happens to their plans when the largest property bubble in history goes pop.

Bizarrely they thought what goes up cannot go down. They have disappeared now but they were the majority on here.

People have short memories. A little knowledge of history is the way to avoid getting into a mess. I hope people are more understanding of those people who do not get caught up in the bubble greed fever when the next financial bubble occurs - whatever that may be.

russ21282

Is there nothing they can do with regard to the property not being completed. There must be some consumer law somewhere stating the purchase must be delivered in an appropriate timescale?

If i ordered a new car for example and they told me it was going to take another year for it to be built, i would be entitled for a refund, despite the fact i signed an agreement stating i was going to buy it.

hethmar

The OP has already mentioned August 09 for the completion date

Riq

Sabotage the build so it's impossible to complete for August 09.


Thank me later.

Mary_Hartnell

Are you losing the thread:

Builder completes the flat: Buyer goes bankrupt when builder sues.

Buyer sues for specific performance: Builder goes bankrupt.

Both parties continue to sit on their hands: Life in "on hold" for the foreseeable future.

The deposit money has gone away.
(My daughter has a block of flats on the corner of her street - it is really depressing, half the roof has been tiled, now the rafters on the exposed bit are going grey-white in the rain and the tiled part is being smashed up by vandals)

I am English, the law might have slightly different results north of the border.

Here the critical moment is "The buyer jumps first, by signing the contract" at that point the buyer becomes liable not just to lose the deposit but for any resultant losses by the seller, who sells at a lower price to some other party..

russ21282

hethmar wrote: »

The OP has already mentioned August 09 for the completion date

Is this not the reviewed completion date though? I presumed from the OPs original post that the flat should have been complete last August, so the August 09 date is a year extra.

plumduff55

Riq wrote: »

Sabotage the build so it's impossible to complete for August 09.

Not such a bad idea !!! ONLY KIDDING

plumduff55

russ21282 wrote: »

Is this not the reviewed completion date though? I presumed from the OPs original post that the flat should have been complete last August, so the August 09 date is a year extra.

When signing the original contract in March 08, the completion date was given as August 08 with a clause that should the building be delayed due to unforseen circumstances the buyer could cancel the agreement without penalty in August 09.
I dont know the legal wording.

This seems to be a standard clause when buying new builds here.

My oldest son and my sister both bought new build houses 3 and 5 years ago respectively with the same type of contracts and both sales went ahead with no problems, one house was delayed by 6 weeks.

Still no word from the builder re cancelled contract, but my son's solicitor is saying the builder has compromised the contract by not keeping the buyers informed of progress.

ruggedtoast

For what its worth apparently some sort of precedent has been set for judges just awarding the builders the deposit already paid, and letting them whistle for the rest.

They can forget about the deposit but possibly, they wont be stung for the remainder of the value.

The one year delay clause doesnt seem unreasonable however. I'm not sure what effect that will have.

EDIT - It does raise a pertinent issue though. For most generation Y's all they've ever known is that if you put your hand out someone will slap a loan agreement into it. A lot of young people are learning the hard way that the credit availability for low to average earners over the last decade has been very unusual, not a norm.

I wonder how many think the current situation is a blip, and that normality will return in a year or two.