HELP! I can no longer afford to complete on my house purchase

Andyj1802

Hi,

About 18 months ago decided to buy a house, I paid the initial 5% deposit (£6750) and all legal fees, arranged a mortgage and my parents were going to loan me enough money to put down an initial 25% deposit.

All was fine until recently I was informed that I was going to loose my job, and my parents can no longer lend me the deposit, this means I simply cannot afford to complete on the contract.

I have spoken to my solicitor and the developer, who had informed verbally that it would be ok and they would cancel the contratct, despite numerous follow up calls this did not come through in writing and I have now been given 10 days notice to complete. After speaking with the developer again they have said that I shoudl not contact them directly and all contact should go through my solicitor.

The contratct states that if I do not complete I am liable to pay a 10% deposit (a further £6750 on top of what I have already paid), and cover any costs incured by the developer in not completing.

I have no income and no savings, a solicitor who couldn't care less about my situation a developer who won't discuss the situation with me and I am clueless as to what I should do.

Can anyone offer any advice please?

Andy

poppysarah

Go to the CAB.

pinkshoes

Was your solicitor your own choice or one they recommended?

Get yourself a new solicitor (some give free 30 mins consultancy) and get them to write a letter stating the verbal agreement made <date> agreeing to cancel the contract blah blah blah...

Bancrupcy would be another option.

zone

You probably wont have to pay the developer any more if you have lost your job as its unlikely they would take legal action. Besides they already have your initial deposit.

grace1990

Hope you realise you won't get back your original deposit, and despite the fact it's sad your losing your job it is quite likely you will have to pay them more, at the end of the day they have to earn a living.

chickmug

Sorry to hear this but when I was in new build we came across extenuating circumstances and would usually let people off but with a payment to cover re-marketing. In many years in that business covering 1'000's of sales it only happened less than a handful of times so taking a compassionate view was not a big deal.

These days I guess the builders need to keep staff in jobs and are taking a much harder line but why not try a 'plea from the heart' letter to the developer outlining your position. Solicitors may not like this form of direct contact but you have nothing to lose?

Hippychick

Have you exchanged contracts?

If so then the developer can sue you for 10% of the agreed purchase price plus notice fees and interest as agreed per the terms of the contract. You may just have to cough up i'm afraid.

If you have exchanged I doubt very much they will listen to hearftfelt pleas, sad as your circumstances are you entered into a legally binding contract and they have every right to try and recover what they are due.

chickmug

Hippychick wrote: »

I doubt very much they will listen to hearftfelt pleas

So you are saying not worth trying?