Redrow won't let us out of Missives

macphee70

Hi this is my first post but I feel its an important warning to everyone. I'm also looking for some advice as to what to do because I don't know what else I can do.

Last May we put down a deposit for a Redrow house in Lanark and concluded missives shortly after, giving them around £4000. This was before the housing and economic downturn so we thought it shouldn't be a problem to sell our own redrow house as it was only 2 years old and only a 3 bed, in a small estate just outside Glasgow. The cost of our new redrow house in Lanark's heather lea estate was going to be £239,500

The redrow house in Lanark was due to be built in October but they put it back due to the housing crisis, never offered us anything in return.

Now they plan to have it fully built for May but we can no longer afford to move. The initial market price for our own house was £137,000, we thought we would get £135,000, this would give us a deposit to buy the new house, at the time the banks were still giving out 95% mortgages so we would have had ample cash to afford the new one but now we can only get a 90% mortgage, and we can't sell our own house. We have even dropped the price multiple times.

As a last resort we considered their part exchange scheme, knowing fine it would be a bit below the market value but £100,000 for a house that's now worth £128,999 is ridiculous. We bought it direct from redrow in 2006 for £119,500, so for them to say its now only worth £20K less that we paid for it came as a bit of a shock. Our outstanding mortgage is still £105,000 so if we took it we would be £5k out of pocket before we bought the new one and I don't have £25k lying around that I can use to pay of one outstanding dept and use as a 10% deposit for another.

We asked if they would drop the price of our new house, no. Give us more for a part exchange, no.

Given the fact that the Redrow Lanark house was £229,500 in last may it should only we worth £207,000 now, but they won't shift on that price, they're being totally unfair.

The only option we had left was to resile (back out) of the missives. Our solicitor wrote to them asking them if we could do this and we got a very aggressive reply back:

Our clients have advised that they will not release your clients from the terms of the missives and will seek to recover all interest and damages to which they are entitled to in terms of the concluded missives between our respective clients.

We look forward to hearing from you once you have obtained your clients' instructions

We've has a good read through are missives and released they they are completely weighted towards the builder favor, this goes against everything the NHBC recommend, so we will be complaining to them too along with our MSP.

We've done everything they have asked us to do from changing estate agent to dropping the price and considering part exchange, we have no more options left, what can we do!

We're loosing serious sleep over this, suffering huge amounts of stress and my wife's constantly crying about it, the depression of this is getting to the point that suicide is looking to be an option. We're worried that we are going to come out of this homeless with a huge dept over our head all because of Redrow Scotland.

We just want out so we can get our life back, please

I will never purchase a new house again and never even consider purchasing another Redrow one either. All I can recommend is that no one else makes the mistakes we have, avoid buying anything from Redrow, they will ruin your life.

pinkshoes

macphee70 wrote: »

We've has a good read through are missives and released they they are completely weighted towards the builder favor, this goes against everything the NHBC recommend, so we will be complaining to them too along with our MSP.

If you do a search through this forum, you'll find many posts from people who have had the same issue. (Perhaps search "missives").

Perhaps you should have read the missives a little more closely BEFORE signing them...

There's really no need for your wife to start talking about suicide, as there's still quite a few options.

For now, you need to concentrate on selling your own home, so look what else is for sale, and price it below all other properties. Be VERY competitive, even if it means selling for what you paid for it originally, or breaking even.

I would also pursue the part exchange, and try again to persuade the builder to drop their price by an equal percentage.

Is there anything in the missives about a delayed completion date that would help?

You might also want to consider bankruptcy, which is one option lots of people in your situation are taking.

tenke

I feel for you. Hope you can find a legal way out of this...

I too almost got caught in Gladedale hooks and I am so happy I left them high and dry before the end of their financial year!!!

They were rude and pushy and wanted me to exchange even before the snags were corrected. They were really offputting and the house quality cheap. I am happy it hit me , even though they offered an " incentive " we were overpaying and getting terrible quality and faulty house all in all.

Really, really hope your wife can overcome this stressy period, well both of you, financial and home issues are terrible matters

My thoughts and best wishes are with you;)

macphee70

quote=pinkshoes;19955979]
Perhaps you should have read the missives a little more closely BEFORE signing them...
[/quote]

Problem is they were standard missives, we tried to get them changed but Redrow's solicitor was giving nothing even then. as for a delayed date, nothing, Redow's missives are completely biased all they say is we'll build you a house called XYZ and you must buy it at this price.

If we lower the price of our house so we break even we still won't have enough money so pay for the new one and cover our 10% deposit that we need, not to mention being able to pay our solicitor, stamp duty or even carpet it.

As I said even if we do buy their house if we find the money we'll be in negative equity instantly as its not worth the £239,500 we agreed.

Redrow have us and are trying to screw us well and truly.

poppysarah

At the end of the day it's only money and bricks and mortar.

Did you have independent legal advice telling you all the possibly combinations of what could happen if things went wrong?

You need to go and get legal advice.

If the worst happens - then don't worry.
Banrupcty is almost compulsory if you follow nulabour rules these days. Don't worry about it. It's not the stigma it once was.

And if you're really feeling very depressed seriously go and get some advice off the doctor too.

poppysarah

You could also think about going to the local papers about it. Publicity might do the trick in shaming them into sorting it out.

macphee70

poppysarah wrote: »

You could also think about going to the local papers about it. Publicity might do the trick in shaming them into sorting it out.

Thats my next plan, (sort of what I'm doing here) I'm sure Redrow will like the negative publicity

But looks like bancurrptcy may be the final option.

Stupid thing is if they gave us £125,000 for the part exchange then it would'nt be an issue and when your paying £240,000 for a new house whats 25k for a builder that lost 42 million in 6 months.

poppysarah

I think the papers are dying for some good stories on the housing market turned back.

macphee70

poppysarah wrote: »

I think the papers are dying for some good stories on the housing market turned back.

Not just them I'm sure BBC Scotland would be intrested in a story involving a builder, espically given the current ecomic state of the counnrty and the fact that the builder Redrow are trying to ruin us despite us being a return customer.

Also, the daily record, etc, etc.

StevieJ

macphee70 wrote: »

Thats my next plan, (sort of what I'm doing here) I'm sure Redrow will like the negative publicity

But looks like bancurrptcy may be the final option.

Stupid thing is if they gave us £125,000 for the part exchange then it would'nt be an issue and when your paying £240,000 for a new house whats 25k for a builder that lost 42 million in 6 months.

The threat of bankruptcy may just do it :cool:

franklee

macphee70, You need legal advice from your own solicitor, do not use one recommended by the builder.

If prices had risen you would not have allowed the builder to put the price up after Missives so likewise you can hardly expect them to put it down now just because the market has gone the other way.

Likewise if they agree to buy your house in part exchange now you should expect them to offer current market price!

But you can negotiate based on threatening you will have to go into bankruptcy. However you do need to be aware it isn't all the builders fault as you as a sane person did sign on the dotted line!

So get your own solicitor on the case asap as costs against you for late completion will be building up!