Problems getting a mortgage on a Buy off plan!!!

Trollfever

We have spent over £15k on legal advice.

What does the solicitor who advised you to sign the contract say about your position?

hostman

Could you go bankrupt?

I'm not familiar with the ins and outs, but if you have no way of completing on the purchase it may be the only option.

wallsy

I sacked my original solicitor due to the fact they failed to point out that the contract was weighted in the developers favour. IE no get out. The fact that I would not just lose my deposit if I failed to complete. As a lay man I thought that a deposit was just that. £13K was a lot of money and still is.

I have not looked fully into the Bankrupt option as I would like in some way to negotiate a new buy price or some way forward. This would be my last option.
I have enough savings to put in another 10% deposit as most lenders need 20% on new builds. The problem is the massive down valuation. The only options I see is for the developer to get something or nothing, but their heads are in the sand. We will see!

tek-monkey

Was the solicitor recommended by the builder? Can you perhaps chase them for negligence? My solicitor at times seems not to want me to buy at all! She's being so thorough its beyond belief, but thats what I pay her for. She says her job is to ensure that when I sell it all goes smoothly, so needs to cover everything possible when I buy.

wallsy

Yes! The Builder or the selling agent did recommend. I have taken advise (expensive advise) about suing not just my first solicitor for misrepresentation but all so the selling agent for the developers. In both cases the recommendation was that it would be hard to prove and so not worthwhile.

IDo I fail to complete and have the risk of court action hanging over me for the next few years? Or carry on looking for a way to complete. I think there is still time to try and find away to complete but its very stress full.
:beer:

tek-monkey

Its too late for you unfortunately, but to anyone else reading this please NEVER go with a solicitor recommended by the seller! You should always ask frinds and family for a local trusted firm, and should be quite hostile towards any pressure to back down from this decision. They can't make you use a solicitor, that is always your choice.

DVardysShadow

tek-monkey wrote: »

Its too late for you unfortunately, but to anyone else reading this please NEVER go with a solicitor recommended by the seller! You should always ask frinds and family for a local trusted firm, and should be quite hostile towards any pressure to back down from this decision. They can't make you use a solicitor, that is always your choice.

I've thanked you, because I agree, that is the straightforward answer. But this sort of scenario is coming up enough and if the solicitor is the builder's choice, I think that it may work in the buyer's favour if the solicitor is sued for not advising of the consequences of being unable to mortgage due to down valuation.

Also, I have been harsh here on the "you wouldn't have complained if values had gone up" angle. In lots of these cases, the buyer would complete on a flat which is downvalued - and pay the mortgage, but can't because no mortgage is forthcoming.

wallsy

I understand your harshness. If I could get the finance I am happy to complete, but at the moment due to down valuation and LTV products this is impossible. Maybe if I was a property owner that had already made 100000's in equity but I am unable to raise the short fall of over £50K.