bought off plan cant get a mortgage

Gwhiz

pmurray wrote: »

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 do feel very sorry for you but it's more a case that many on here are amazed that people would put down the deposits and take the risks associated BUT then when the risk turns out to be a bad one want to find a way out.

Never sign a contract without knowing what you are getting into and when it goes t!ts up take responsibility and deal with it which it sounds you are doing.

hearts

Gwhiz wrote: »

I do feel very sorry for you but it's more a case that many on here are amazed that people would put down the deposits and take the risks associated BUT then when the risk turns out to be a bad one want to find a way out.

Never sign a contract without knowing what you are getting into and when it goes t!ts up take responsibility and deal with it which it sounds you are doing.

Thats very harsh. When these people signed for these houses neither the seller nor the buyer could foresee what was to come. It was a common practice that had worked well for many years. These people are just victims of circumstance/bad timing.

FoxtonsRIP

hearts wrote: »

. These people are just victims of circumstance/bad timing.

And greed of course

franklee

Anyone who purchased off plan during the boom thus getting the benefit of house price rises whist they owned their existing property as well as having reserved their new property at a cheaper price from a year or two before completion was a smart investor. It was all OK for them to pocket the substantial gains.

Anyone who did the same and then prices fell is a victim of circumstance/bad timing? It is not fair for them to take the loss

ruggedtoast

I just cant imagine why you'd contractually obligate yourself to paying hundreds of thousands of pounds for something without ensurig you have funds in place to actually do so.

What if you lost your job; suffered ill health and couldnt work; developed a bad credit file? There are so many things that can go wrong buying offplan other than house prices falling.

I feel sympathetic on one level, but on another level one has to ask, what were you thinking?

GDB2222

Just in case anyone else in the same position is following this thread for guidance, the legal position is:

1) If you don't complete the contract (ie buy the flat) you lose your deposit.
2) The builder can definitely sue for any loss they incur. So in this case if they eventually re-sell the flat for £90k, their loss is £62.5k plus their expenses, but reduced by the deposit already paid.
3) There is a possible argument about late completion, but I am not aware of any cases having gone through the courts yet.

For most people, it is better to bring this to a head as soon as possible. Otherwise, you have the possibility of a court action being bought against you for the next 6 years.

pmurray

Hi, Yes you are spot on, but you may also be charged interest from the date completion should have taken place. I am in the process of this at the moment. My only defence is the amount the builder is charging me, my solicitor has asked the builder to proove their losses. Not fair, I know as the builder looses nothing.

Pssst

ILW wrote: »

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

Perhaps we need more Polish barristers in this country? There is obviously a lack of competition.

Pssst

Ill bet many developers are relying on cases like this to generate income in these troubled times.

hearts

franklee wrote: »

Anyone who purchased off plan during the boom thus getting the benefit of house price rises whist they owned their existing property as well as having reserved their new property at a cheaper price from a year or two before completion was a smart investor. It was all OK for them to pocket the substantial gains.

Anyone who did the same and then prices fell is a victim of circumstance/bad timing? It is not fair for them to take the loss

Don't class all of them the same. Some were merely trying to buy a new home and got lucky. As this one has got the opposite. Not all were in it for a quick buck.

QUOTE:"I just cant imagine why you'd contractually obligate yourself to paying hundreds of thousands of pounds for something without ensurig you have funds in place to actually do so."

They may well have had the funds available through a mortgage offer. Now the price of the property has dropped though, getting the funds is probably impossible.