Buying a new build flat for buy-to-let - lender valuation has come back really low

poppy10_2

carolt wrote: »

I assume that had the price doubled in those 3 years, the OP would of course, have agreed to pay double the figure he'd signed up to, out of the goodness of his heart? No?

Or would he have kept his unearned profit?

Let's guess....

Exactly. These punters all thought it was a one-way bet, and are now bleating when they have lost out.

brit1234

Georgie4 wrote: »

Do you realise how mean and bitter your posts are ! How can you possibly be so happy that someone - no matter what their financial position is- has lost out financially to a company. Thought the whole point of MSE was to help and support one another:D

He was one of a legion of buy to let investors who priced out first time buyers or forced them to over extend. If you chose to treat property as a gamble to get rich quick rather than what we want to call a home then prepare to be burned.

Mortgage lenders are demanding large cuts in flats as they are so overpriced and poor standard. They are not luxury, thats marketing spin. A flashy leaflet of a couple drinking wine does not give them the right to double the price.:mad:

Trollfever

If I was a shareholder in the developers I would be encouraging the company to enforce legally binding contracts.


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Out,_Vile_Jelly

brit1234 wrote: »

They are not luxury, thats marketing spin. A flashy leaflet of a couple drinking wine does not give them the right to double the price.:mad:

Ah, but what if the couple are wearing smart suits standing on their balcony, admiring the view of the stylish heart of London's urban regeneration?

FoxtonsRIP

The buy to let new build thing is a horrible sleazy business. It looks like the OP has been taken for a ride.

Troubled_Joe

Fire_Fox wrote: »

Why on earth would you want to pay more than the market rate for the flat? You should be delighted you have a low valuation, either you have been forewarned or you are getting a bargain.

It doesn't matter how late the developers are finishing, it matters that they are late. You may well be able to withdraw completely (and get your deposit returned) or at least threaten to withdraw completely. Check your contract: this and the valuation is the bargaining tool you need.

'Essentially complete' shows your inexperience. The developer could go bust or pull the builders out the minute you complete the sale, and never finish your block or never finish adjacent blocks. Snagging is often a very long process and sometimes the dispute is never resolved.

If you still want to go ahead with the purchase I recommend you consult your conveyancer. Any changes to your current agreement will probably need to go through them, and definitely need to be put into writing.

With the greatest of respect I think you've misunderstood his predicament.

He is contracted to purchase at the original price. His options are a) buy at that price (which he cannot get a mortgage for) or b) forfeit deposit and wait for developer to sue for their loss based on teh new price they will need to sell at.

AMILLIONDOLLARS

Fire Fox

The Developers aren't late completing this development! They are due to start building another block of flats next to the one adusad bought into, its going to block his view of the Thames!!, but they won't start building until they have sold all of the 1st phase. In fact Berekeley have a lot of building to do around this first block, a hotel for example, I was told the Holiday Inn would take over this building:D

The rep I spoke with said that Berekeley would be there for another 10 YEARS when the development if finally complete. They'd better make it another 15 the way things are going!!

AMD

Fire_Fox

Troubled_Joe wrote: »

With the greatest of respect I think you've misunderstood his predicament.

He is contracted to purchase at the original price. His options are a) buy at that price (which he cannot get a mortgage for) or b) forfeit deposit and wait for developer to sue for their loss based on teh new price they will need to sell at.

My understanding is that the prospective purchaser is contracted to purchase at a certain price AND the developers are contracted to complete and release the property by a certain date. It was also my understanding (please correct me if I am wrong) that a buyer could have their deposit returned if the developer failed to hold up his end of the bargain. Hence my question about completion dates.

Fire_Fox

AMILLIONDOLLARS wrote: »

Fire Fox

The Developers aren't late completing this development! They are due to start building another block of flats next to the one adusad bought into, its going to block his view of the Thames!!, but they won't start building until they have sold all of the 1st phase. In fact Berekeley have a lot of building to do around this first block, a hotel for example, I was told the Holiday Inn would take over this building:D

The rep I spoke with said that Berekeley would be there for another 10 YEARS when the development if finally complete. They'd better make it another 15 the way things are going!!

AMD

You are talking about the entire development. I am talking about the specific flat allocated to the OP and the communal areas of that block. There should be a completion date for the latter specified in the contract if the conveyancer has done his job properly.

AMILLIONDOLLARS

My understanding is that the development is on time, from my conversation with the Rep. Everyone should be completing and moving in next month, I'd have to have another look at the brochure I was given to see if this is the plan.

AMD