Help! Just about to loose 26k on deposit on new flat - advise please

simyboye

It makes me sick to the pit of my stomach that the investor assured me I would come out of this making a great deal of cash on this... however everyone one on here has asked how I thought I would get mortgages? Granted, climate has changed and everyone wants a min of 25% deposit and whichever way you look at this, is a big load of cash...
One of the investor partners thought I was on 50k salary as a Fire Fighter?! Not even Chief Fire Officers get that!

It all stinks and at the end of the day, its me that made these choices and now stand to loose £40k That is if I dont get sued by the developers.GUTTED!!!

GMS

How did he think you were on 50k? I assume you put him right?

Sounds like you have been caught up in the get rich quick scheme.

No matter how badly you feel you have been misled you jumped in without proper advise.

Speak to the developers and see what they can do for you. They may be happy to pass it to somebody else, for a fee of course but at least you could minimise losses.

dunstonh

The investors I went with negotiated discount hence why I went with them,

<snip>
he solicitors that I was recomended to by the property investors

This sounds like one of those property scams where people pretending to be property moguls offer their "skills and knowledge" to average consumers to help them learn how to make money on property. They then tell them of properties they are aware of that are discounted (which they are not - usually quite the reverse) and then get them to process everything through their people.

Usually it ends up with owning a property that is worth a lot less than paid for and the only ones making money are the "property moguls" who were in cahoots with the developer (who also does well out of it).

This is potentially illegal activity but many are not. They play on consumer greed and the inexperience of the individual who will not seek independent financial or legal advice. So, whilst what they do is close to breaking the law, often its not. An independent solicitor is really needed to guide you on this.

simyboye

dunstonh - thank you for your input. Funny you say that, as the property I have bought in edgware (taylor wimpey) I cannot find any info on this, either through their website or as a generic search...

I know one of his best friends bought a flat (same one I bought in liverpool) and I transfered into bradford. So I'll ring him in the morning to see what happened to his deposit.

silvercar

If you mean "The Edge" its here:

http://webcache.googleusercontent.com/search?q=cache:HLU7P6HKx9AJ:www.smartnewhomes.com/development/details/The_Edge_Taylor_Wimpey_North_Thames.aspx+%22the+edge%22+edgware&cd=6&hl=en&ct=clnk&gl=uk

If you want the non-estate agent view: they found some land on the edge a council estate that comprised low rise flats, built some 2 bed, 2 bathroom flats in a low rise block, marketed them from a portocabin parked on the edge of the council estate and the busy A5. As an area Edgware is OK, but the location is the worst part of the area.

simyboye

That would be the one. I bought a 2 bed 2 bathroom apartment. And no info on Taylor Wimpey website. Not that I could see anyway.

silvercar

Here's one for sale at £259,950:

http://www.homesandproperty.co.uk/sales/1225016

silvercar

Sold prices are in the range £230-250k in 2007 and 2008. So I guess that was the first lot sold.

So your pricing:

"260k purchase price
26k deposit
238k Revised price
212k To mortgage
280k Current value"

is off the mark. The revised price is roughly what they were originally sold for. Nothing has sold for over £250k, so the current value won't be anywhere near £280k given the stamp duty increase at £250k.

FraudBuster

I feel like a very small fish in a very big tank at the moment.

And you decided to swim with sharks.

simyboye

FraudBuster wrote: »

And you decided to swim with sharks.

Very, very hungry pirahnas.. I'm done here. I'm certain I will loose 40k.