struggling to complete on apartment purchase

homerton1

I am currently trying to complete on an apartment in the uk. I exchanged contracts 2.5 years ago but am struggling to get a mortgage as I am self employed. The property has not dropped in value. Could someone please give me advice if I do not complete on this , where do I stand legally, will I get sued if I am unable to complete.
If anyone can help with advice it would be really appreciated.
Thankyou

Bufger

you exchanged contracts 2.5 years ago and now you're getting chased to complete? I'm very suprised you could wait this long before completing.

Was it built before you bought it or was it off plan. Im also suprised its not dropped in value from 2 years ago. Most properties have dropped in value since then. Is this your opinion or have you had it valued since then?

You can get sued if you dont complete after exchange. Make sure you have absolutely no doors left open for a mortgage before you admit defeat. You only lose when you stop trying to win

Post some more details and it will help people form a more informative response.

homerton1

It is only just being finished and the value is ok, all other apartments are valuing at the same price as the purchase price.

david29dpo

10% is normal

Richard_Webster

Did your solicitors warn you of the risks of buying off plan with no certianty of a mortgage?

If not sue them.

homerton1

Thanks I agree 10% is right but I spoke to the surveyor and he has been valuing them at the same price as the 2006 sale prices. its a unique building.
I did know the risks so can't complain about that.
I was in full time employment but am now self employed, I have paid 10% deposit on exchange and have another 15% deposit to make up 25% deposit but do not 3 years accounts, but have good credit rating.

Fire_Fox

Do you have a family member who will go guarantor on the mortgage?

AMILLIONDOLLARS

homerton1 wrote: »

Thanks I agree 10% is right but I spoke to the surveyor and he has been valuing them at the same price as the 2006 sale prices. its a unique building.
I did know the risks so can't complain about that.
I was in full time employment but am now self employed, I have paid 10% deposit on exchange and have another 15% deposit to make up 25% deposit but do not 3 years accounts, but have good credit rating.

What Surveyor were you speaking with? A building Society/Bank Surveyor? Or an Independent Surveyor? To say you have spoken with a Surveyor that valued it at 2006 prices, implies that a survey was carried out on your behalf by a lending institution, but if you do not have 3 years accounts I am surprised that they took your money for a survey in the first place!

AMD

dopester

homerton1 wrote: »

I am currently trying to complete on an apartment in the uk. I exchanged contracts 2.5 years ago but am struggling to get a mortgage as I am self employed. The property has not dropped in value. Could someone please give me advice if I do not complete on this , where do I stand legally, will I get sued if I am unable to complete.
If anyone can help with advice it would be really appreciated.
Thankyou

Depending on the contract you signed, you might be under an obligation to pay.. regardless that you now can't find finance to pay what you agreed to pay.

It is called "specific performance." Some developers are forcing those who signed to pay what they owe, others are cutting deals with buyers who can no longer find the financing (or just don't want to MEW further on their existing homes or raid their savings accounts to pay for something which has fallen greatly in value).

The contract you said probably didn't have at the end:

The undersigned agrees to pay £xxx,xxx amount when development is built

Signature:

(Of course we as the developer will build this home you've agreed to buy, but only hold you to this obligation to pay us £xxx,xxx once the building is complete if when the times comes to pay you can find a lender willing to lend you the money you need to pay us.

If you can't raise the money you agreed to pay us to build your home.. no problem. We'll forget about selling it to you, and sell it to someone else if we can for a lot less money. However, we've paid out alot of money during previous market conditions to employees and labour and materials at higher prices, but we'll just absorb these losses ourselves, because we don't want you to be put out in anyway at all.)

blckbrd

Is there any possibility of selling the property before completion?

Thrugelmir

Richard_Webster wrote: »

Did your solicitors warn you of the risks of buying off plan with no certianty of a mortgage?

If not sue them.

How can a solicitor be held responsible for the financial circumstances of an individual some years later?