bought off plan cant get a mortgage

AMILLIONDOLLARS

Just read this off another site:

On the “what will the courts do to those who have paid a deposit and contracted to complete but can’t” point. There is a clear and certain answer.

The court has absolutely no choice whatsoever but to strive to enforce the contract. I suppose they would try to do this by awarding a money judgement to the developer.

When this doesn’t get paid the developer will have to go through the ghastly process of enforcement, where the court does have some room to help a wounded judgement debtor but not much.

It can all take time but the defaulting purchasers may very well risk losing their homes if they can’t complete or pay the damages.

London is a centre for international law precisely because you have more chance of enforcing a contract there through the courts than most other jurisdictions. This is a fact dear to the hearts of many lawyers and very many judges.

If the terms of the contact are clear, the judge must strive to enforce, no discretion, no choice. If a judge fails in this obligation he will just get appealed and judges hate and fear that.

On this basis I'd try to negotiate
AMD

Georgie4

muscles wrote: »

First time i ve posted on here but need some frank advice as my solicitor who was appointed by the developer dos'nt seem to want to help.

Anyway i purchased a one apartment off plan in Birmingham City Centre in 2006 for £152,500.00 of which it was meant to be completed in June 2008. I paid a deposit of 10% £15,250.00. I recently had it valued at around £90,000.00 so no bank will offer me anywhere need the mortgage i require. The developer George Wimpey and there solicitor wont entertain anything im saying and my solicitor has said that they will keep my deposit if i dont complete. Im also scared encase they sue me (constant sleepless nights and permenant stress)!!! The initial completion date is 12 months overdue so do i have any chance of suing them for breach of contract due to the initial completion date being put back 12 months (its due to complete June 2009)? My solicitor has said that i could go for counsel (barrister) but their fees are unbelievable (around £350 per hour)!!! Anyone got any advice on what i should as i dont want to sued and i dont think its fair that they can keep the whole of your deposit!!!

Any info will be much appreciated x

Do you have anything in writing which says completion is due in June 2008 - if you don then you could argue that it is unreasoable to expect you to know pay this price. If you still want it then try and renegotiate the price armed with the valuation but theoretically they can keep your deposit and try and recover the difference between the price you agreed and what they could sell it for now. However, you could have a case that if it had been ready when stated then you would have paid the price they were asking and could have got a mortgage to cover it. BUT whatever you do get independant loegal advice, a solicitor supplied by the developer is going to have their best interests at heart:eek:

poppy10_2

Suing them for breach of contract is unlikely to recover your costs.

muscles_2

thanks for all the posts.

just wondering if theres any point in employing a barrister? Although expensive (£350 per hour) would i get anywhere due to the completion date being put back 12 months?

The main thing thats worrying me is if they will sue me and then losing my house and being made bankrupt!!!

Anybody been through this or know anybody who has?

ILW

muscles wrote: »

thanks for all the posts.

just wondering if theres any point in employing a barrister? Although expensive (£350 per hour) would i get anywhere due to the completion date being put back 12 months?

The main thing thats worrying me is if they will sue me and then losing my house and being made bankrupt!!!

Anybody been through this or know anybody who has?

Tou need to establish if you have a case before employing a barrister. They even charge you "thinking time"

AMILLIONDOLLARS

Muscles

Even though your development is George Wimpey, have a look at the links I sent you to give you some sort of idea of what you're up against. Please have a search of the wimpey support group, there must be one out there? If not have a word with the co-ordinator for Berekeley Homes as he has a wealth of advice for people in your situation. Good luck

AMD

Mini_Bear

OP - my advise is walk away and let them keep your deposit as another poster has said. Try to get the developer/builders to agree that if they get to keep your deposit you will not be sued in the future.
The developer must have lots of people in the same situation as you (unable to get a mortgage to cover the flats original price). If you can negotiate to leave quietly they may agree.

muscles_2

does anyone know of a George Wimpey support group? Just had a look on google and could'nt find anything!!!!

Fire_Fox

Read through the contract you signed and all the paperwork from your conveyancer. You may be able to pull out and get your deposit returned if the developer has breached the contract in respect of late completion. Only you know what you have signed - post back the wording of the contract and we can give our take on it. Bear in mind the property is only complete after the snagging has been agreed, so if the contract allows them to be a year late, get picky with snagging list!!

muscles_2

thanks for all the posts but got a few further issues.

firstly i hav'nt even got a copy of the contract and my appointed solicitor is ignoring me e-mails and phone calls, not sure what to do?

what i need to know is surely there would be a completion date in the contract and now this has expired surely the developer is in breach of the contract due to the delay being just over 12 months? i also never received any notification about the delay so does this mean i can dispute the contract?

one last thing i initially purchased this apartment with my ex partner, i said i would take on the contract but i have signed nothing, not even a contract amendament for this to be solel in mu name!

in reality im just loooking for angles to get out of the contract, will any of the above matters help me in any way ie the developer delaying completion, no copy of the contract and not agreeing to the delay?