Due to complete on new build and cant get finance!!

Georgie4

Lot_lad wrote: »

Hi,

I put a deposit down 10%,on a new build property with Berkeley Homes in June 2007 (talk about a peak) and the development is due to complete next month.

However, the mortgage providers valuation is 60% of the original value and Berkeley Homes will not reduce the price. I have met them twice and they will not negotiate and say I am bound to the original price. This leaves me with 66k to find?! I have no savings (savings were the deposit) and they are serving notice so what can I do??

Solicitors say they cannot find fault with the contract and developers wont budge and say they will sue. Will they just keep my deposit and sue me for the rest? If I was made bankrupt I would surely lose my job.

Losing lots of sleep and need help please!

Not what you want to hear I know but they can keep your deposit and sue you for the difference between what they could have sold the house for in 2007 and what it would be worth today. This is totally unfair with the length of time it has taken to actually complete your property but when you buy a new house all the power is with the housebuilder:mad:

AMILLIONDOLLARS

I went to view the development at the weekend here are my findings;

1. Flats are now being marketed at £315K, I said to lady was this negotiable, she said that inline with market conditions they had reduced the price to this figure from £345k (for two beds) but she mentioned in the same breath that I could negotiate to buy the flat at £270k, so another immediate discount of £45k without seeing the show flat:D.

2. Secondly, she mentioned that they could not sell with flats stating views of the river, as they were going to build in front of the flats with another development of flats, but that they would not start building these until the 14 remaining apartments had been sold. (She urged me to hurry and make a decision as the flats were selling out fast:rotfl::rotfl:
I would only need to put down a deposit of around £2K to secure an apartment. To be fair looking at the floor plan of the building, it looks as if they have indeed sold most of the apartments and there was
two other couples in the marketing suite having a look when we were there.

3. I asked about parking - If I wanted a parking space, it would cost me an extra £22,500k, I nearly fell off the chair (for south london!!!!, She suggested some where 300 yards away, or I'd have to park on pay and display. Considering how much they want for these apartments I though this a bit rich:mad:

4. Not included in this price - No carpets in the bedroom, no washing machine, no built in wardrobes and small kitchen area - I couldn't appear on come dine with me even if I wanted too, same with second bedroom.

Decor excellent, but all in all not worth the money!!! for the next 10 years the place will be a massive building site. Aparently they will be starting on the Crossrail extension next month which I one good thing I suppose.

AMD

maninthestreet

AMILLIONDOLLARS wrote: »

I went to view the development at the weekend here are my findings;

1. Flats are now being marketed at £315K, I said to lady was this negotiable, she said that inline with market conditions they had reduced the price to this figure from £345k (for two beds) but she mentioned in the same breath that I could negotiate to buy the flat at £270k, so another immediate discount of £45k without seeing the show flat:D.

2. Secondly, she mentioned that they could not sell with flats stating views of the river, as they were going to build in front of the flats with another development of flats, but that they would not start building these until the 14 remaining apartments had been sold. (She urged me to hurry and make a decision as the flats were selling out fast:rotfl::rotfl:
I would only need to put down a deposit of around £2K to secure an apartment. To be fair looking at the floor plan of the building, it looks as if they have indeed sold most of the apartments and there was
two other couples in the marketing suite having a look when we were there.

3. I asked about parking - If I wanted a parking space, it would cost me an extra £22,500k, I nearly fell off the chair (for south london!!!!, She suggested some where 300 yards away, or I'd have to park on pay and display. Considering how much they want for these apartments I though this a bit rich:mad:

4. Not included in this price - No carpets in the bedroom, no washing machine, no built in wardrobes and small kitchen area - I couldn't appear on come dine with me even if I wanted too, same with second bedroom.

Decor excellent, but all in all not worth the money!!! for the next 10 years the place will be a massive building site. Aparently they will be starting on the Crossrail extension next month which I one good thing I suppose.

AMD

If they are selling fast, why have they suggested that they are prepared to see a property priced at £315K for only £270K? Be wary of site plans that seem to show most of the properties as sold - this may not be the case.

AMILLIONDOLLARS

I know maninthestreet!, I was just relaying what I saw and heard!!

AMD

Lot_lad

Richard

Thanks for the information. There was no mention of the dangers of not having a mortgage approval prior to signing the contract so maybe my solicitor has some responsibility but surely it is me who signs so my fault?

Is there an argument for Berkeley homes inflating their prices in June 2007? If similar properties in the area were sold for a lot less do they have a duty to ensure 'correct and fair' valuation? I will also be looking for s second legal opinion as I think it will be needed in this case. Can anybody recommend a specialist in this field?

Lot Lad

Lot_lad

Georgie4 wrote: »

Not what you want to hear I know but they can keep your deposit and sue you for the difference between what they could have sold the house for in 2007 and what it would be worth today. This is totally unfair with the length of time it has taken to actually complete your property but when you buy a new house all the power is with the housebuilder:mad:

When you say 'could' have sold the house for, they have not sold all the properties in the block even now, would that have any weight? If the block is only 65% sold (which it is currently) not the mention the people who default surely the property is now different i.e. it is not worth what was agreed on the contract based on sales??

Spins my head really as it seems there are two arguments and not much evidence in either favor. Housebuilders have not really been in this situation before.

What about the Media? Would it help approaching them?

Lot Lad

socrates

Jonbvn wrote: »

Here's the link!
http://groups.yahoo.com/group/berkeley-customers/

Just wanted to say a massive thanks to you Jonbvn - about 18 months ago I was advised to go onto a fixed rate BTL mortgage on here and by other people in my circle.

You were the only one who advised me to go for a tracker - once you put the idea into my head - I then - with the assistance of a good broker, people on here and my own investigations came up with a good deal.

As has been proved the fix would have been a poor decision especially with around £610k worth of borrowing.

So if anything I owe you a beer (or 2 or 5)!!!!!

adusad

Lot_lad wrote: »

Hi,

I put a deposit down 10%,on a new build property with Berkeley Homes in June 2007 (talk about a peak) and the development is due to complete next month.

However, the mortgage providers valuation is 60% of the original value and Berkeley Homes will not reduce the price. I have met them twice and they will not negotiate and say I am bound to the original price. This leaves me with 66k to find?! I have no savings (savings were the deposit) and they are serving notice so what can I do??

Solicitors say they cannot find fault with the contract and developers wont budge and say they will sue. Will they just keep my deposit and sue me for the rest? If I was made bankrupt I would surely lose my job.

Losing lots of sleep and need help please!

i'm in exactly the same situation... on the same development... stressed and no idea what to do... :-(

franklee

adusad wrote: »

i'm in exactly the same situation... on the same development... stressed and no idea what to do... :-(

Join that yahoo group mentioned twice above.

AMILLIONDOLLARS

For your info there is a meeting taking place on the 9th May details below. You'll have to join the group to get contact details

Re: [berkeley-customers] Legal Advice Meeting


Morning all

For those beneficiaries of the legal advice who couldn't make it to the meeting with John Duffy/Faegre Benson on Sunday, it was an interesting and positive meeting. I'll email salient comments to you this evening. All beneficiaries should now have received your questionnaires. If not then please let me know.

For the group at large, I have pencilled in a open meeting at Wetherspoons' Crosse Keys for 9th May at 12h00. I'll add to the group calendar and you'll receive reminders by email for that. This is open to any members of this group who wish to attend; any developments.

A note to all... As we near completion we should expect to see a wave of new members in a similar situation join us given there's not been a radical reversal of the issues around housing valuations and mortgage financing. Welcome to those guys! Please read the previous postings thoroughly as a lot of the questions will have been asked, discussed and hopefully answered where they can be. If not, ask! There are still a lot of question marks which we can't change immediately but hopefully the contents of these pages will offer comfort that you're not alone and by being a member of this group you are active in sharing ideas, trying to find a conclusion.

A few key points:
* Get a mortgage offer in place (you can't negotiate without having something to offer)
* Completion letter will land with you ("you have 14days" and likely a few threatening paragraphs). Write back and explain you can't complete mentioning you're a homebuyer not an investor, low valuations, no appropriate mortgage finance available and dropping LTVs, negative equity in your home etc (name delete.... will send a template letter for you to personalise).
* Failure to Complete letter will land with you ("you have 14days further" and certainly a few threatening paragraphs re being sued, damages, interest etc). Write back reiterating the above.
They have a contractual obligation to do the above and have no reason to negotiate until they truly know the depth of their defaulters. That's at least a month after completion before anything positive can happen so we are really at the start of negotiations then. It is intimidating if you let it be. Sit tight.
* Despite the hardline, the meeting with BH (Tibaldi/Clanford) proved they'd be open to 'creative suggestions'. Think long and hard about alternatives. Email me any suggestions (off-forum please to ensure confidentiality before any negotiations start) (contact details deleted)

Additionally, if you have any firm dates of note, ie completion dates, please add these to the group calendar too.

Please keep the databases up to date by adding your details, particulalrly the property one - who owns what and where, so we can track who we are representing with BH (anonymously if you prefer).

See you next Saturday.

Rgs SD