bought off plan cant get a mortgage

AMILLIONDOLLARS

Was your solicitor appointed for you by the developer? if so, you will need to appoint your own, as in most cases your current solicitor may not be working in your best interest but the developer's.

Do you remember signing and exchanging contracts. Your solicitors should have a copy. Make an appointment to see them face to face with your concerns. If they are not answering your calls I would threatned with them with Law Society. They are governed by them, have a google for the number.

Have you consulted the Buillding Society on removing your ex-partner? Her name will be on the advance offer/deeds and they may not be agreeable to you doing this. Have you tried to get a new mortgage offer in place? It best to negotiate with some sort of offer to hand?

Good luck
AMD

muscles_2

Thanks for all the responses.

Just started to negotiate with George Wimpey whilst i firstly try to get a mortgage offer. Wondering if anyone knows where my initial deposit of £15,250 which i paid to George Wimpey goes? Does this go towards my mortgage as a deposit or does the developer keep it?

For but to let mortagages the best deal on the market is 35% deposit so i need that deposit back or i wont be able to complete and will probably be sued!!!

Richard_Webster

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?

If they are not replying to your calls and e-mails then you can complain about their conduct.

As I have said before, you need to consider what advice you actually got from your solicitor. Isn't there anything in writing explaining about the risks of exchanging without a mortgage and also explaining to you that the completion date is in no way fixed?

If there was no such advice then write a private and confidential letter to the senior partner saying you want to make a complaint about the conduct of his firm. citing the lack of such advice as a reason. Tell him you expect an initial response within 7 days. He will either have to do something to sort things out for you or tell you to go to another solicitor (code for "we think we might be negligent and you'd better get your own separate legal advice").

Blueforever

Every solicitor must have a complaints procedure - with a nominated partner (or a solicitor at another firm ifd it is a small firm) that you can complain to. The law society has recently changed how it deals with complaints (and I think they have changed the name of their complaints handling body). I have suicessfully taken a solicitor to the law society and won - its definately worth looking into.

Don't let professional people ignore you - the legal person in our office says that they are goverened by so many regulations that it is unbelievable.

tara747

Oh dear, this is a cautionary BTL tale!

muscles - you say you 'need that deposit back'. In reality you have almost zero chance of getting it back if you do not complete. Your choices are (imho):

1. Complete and buy the flat
2. Let the developer keep your deposit and get it in writing that you will not be sued
3. Explore your options if the builder takes you to court and get legal advice as early as possible

Can you sell your existing property (does it have enough equity) to finance the purchase of this flat and live there yourself? You may need to do this if the court orders you to complete (which is highly likely). Consult an independent solicitor and read the contract thoroughly. Let us know how you get on.

Richard_Webster

Every solicitor must have a complaints procedure

Quite. The only point here is whether it is a complaint about poor service where the firm can deal with it, or their negligence- in not advising properly. In the former case the firm may try to put things right and may offer some compensation, but this is generally limited to hassle factor compensation rather than actual loss - and if OP ends up having to sacrifice the deposit, then that would be actual loss. If it is negligence they have to be careful what they say because they will have to be guided by their professional negligence insurers and may be forced to say they can't comment. but then they should advise OP to go to another solicitor (who will look into the negligence issue).

OP does need to look carefully at letters and explanatory papers that were sent to him, to see what was said - or may be nothing was said. If OP has thrown them away then it is more difficult...

If the solicitor isn't negligent because he did warn OP of the risks then he should still be trying to help OP out of his predicament and in this connection refusal to speak to OP would be a ground for complaint.

muscles_2

just wondering if my initial deposit £15,250 is held by the developer or solicitor? Im trying to get a valuation done and if can get the property at todays prices i was wondering if this deposit then goes towards my mortgage (or in other words comes off the new purchase price and forms part of my mortgage deposit)?

carefullycautious

I cant understand why the builders dont just let you purchase at the price the flats have dropped to. Surely that is better than having flats stood empty. If you went back to the bank asking for a 90,000 pound mortgage would they not agree to this.

With all the problems associated with these new build flats and suing everyone who seems to be in your position I would have thought it would make more financial sense to sell at the lower price which they will have to do anyway. Most of the people sued will have to declare bankruptcy anyway. So how does the builder win?

Or am I missing something here.

mustang1

muscles - you paid this deposit to the developer on exchange of contracts. Depending upon the wording of the contract, it should be held by their solicitor until completion of the purchase when the deposit money will then be deducted from the balance of the purchase price.

As you say, you can't get a mortgage anymore. It is likely under the terms of your contract that you will technically be defaulting and if that is the case then the developer will get to keep your deposit and you will have lost your £15k.

As I have said, everything depends upon the contract wording and the advice you were given by your solicitor when you entered into the contract.

Your main focus at the moment should be to get a copy of your contract, review all correspondence between your solicitor and you and if you aren't getting anywhere with the solicitor, then follow the complaints procedure advice others have posted about.

pmurray

Hi,

I am in a similar situation to yourselve. Just to make you aware of what has happened to me.

Same story could not get a mortgage, failed to complete, failed to renegoatiate with builder. This should have happened in December 09 I have just received a WRIT from builder, I have therefore consulted a solicitor who has advised that the contract will stand up in court, the only defence I have is against the amount they are seeking. I have not lost as much as you as I was on an EARLY BIRD scheme that only required 1K deposit, but I am facing being sued for s further 10K which they claim they have lost. I am not in a position to find this money and run the risk of having to pay the additional legal costs, but I do not know what else to do.

I am in Scotland, and understand theat Scottish Law differs although the principle is the same.

I have read many posts from people who think we are getting what we deserve.........we have been caught up in the credit crunch I do not believe that anyone reserved a property thinking that they would be unable to complete. Why would anyone do that!!

I am really keen to hear from anyone in a similar situation in Scotland with Taylor Wimpy