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

simyboye

Oops! I've just done a bit of research on Bradford Lister Mills and that one looks like a dodgy place to purchase.
I think I will try pull out of this one too.

silvercar

simyboye wrote: »

Morning, I bought a development in Liverpool. I put 16k down on that. However there were implications with regards to asbestos so that project got put back. I was then given the oportunity to get into one of the other developments. So I chose Bradford. But again, this is investors telling me its worth XYZ.

Lister mills is the development. I'm off to check it now.

Thanks again for your help.

Oh dear:

http://www.housepricecrash.co.uk/forum/index.php?showtopic=33195&st=45

"I'll tell you whats happening here, its getting worse by the day!

I have been renting during the week for about 3 years and it was OK at first. It is now not a nice place to be. The apartments are very nice but its where they are that is the problem, it just doesnt make sense, lovely apartments in an absolute dump of an area. I am currently looking to get out as I only spend some working evenings there and I now fear for my safety. Recently there has been a fire in the underground car park, it appears a vehicle was deliberalty torched, fortunately over a weekend whan I am not there!. I nearly got mugged by some hoody at 11.00pm on a Sunday evening, they have now got security guard onsite but this is still no real deterent. Rubbish is left in communal areas, even in lifts. You can smell what I can only describe as "weed" in a lot of the corridors.

I am currently in the process of moving to Victoria Mills which I hope is a better prospect. The Lister Mill area is a real dump and even having the police station opposite doesnt help. They drive like nutters and even revel in cutting you up. It would appear that as the rental prices fall the standard of tennants are also falling. I think myself quite tollerent but you have to draw the line somewhere.

I wouldnt touch this place with a barge pole either for renting but definatley I wouldnt buy. The writing is on the wall for this place for sure and actually there will probably soon be writing on the walls in the form of graffiti.

For someone who has been there for a number of years and seen its slow decline I wouldnt recommend anyone to live there.

I will be out of there very soon I hope!! "

simyboye

Yes, I just read that one...
I dont have any contract or anything like that. So I shouldnt have any issues pulling out. Seeing the investor on Thursday. Keep you posted.

mynameisdave

Investors sound like they are spinning anything to get their own money back.

http://www.thetelegraphandargus.co.uk/news/8154979.Bomb_squad_called_to_Lister_Mills/

http://www.housepricecrash.co.uk/forum/index.php?showtopic=33195



Sorry, it sounds like you have been increadibly naive in this and you shouldn't have paid a deposit on Liverpool if no contracts had been exchanged. If contracts have been exchanged I would use this as a bargaining tool to get out of Bradford with your deposit.

You need to seek independent legal advice. Not he firm that was recommended to you by the people that have done you no favours so far

Blacklight

There's a couple of residential mortgages from C&G but you'd need to be on 36,000 in order for it to work. Alternatively you'd have to find a little bit more of a deposit or go and talk to them and see what they can do for you.

Of course, you'd also have to move and take in some lodgers

Where there's a will there's a way and I'm sure faced with losing £26k there's a pretty big incentive.

Stick with it and you may be able to turn it around. If you do it could turn out to be reasonable investment as London prices seem pretty resiliant. He who dares wins.

GMS

mynameisdave wrote: »

My personal opinion (please dont take this as professional advice) would be to get the Badford one bought and sold ASAP.

If you are buying for 68K and have a 16K deposit then you are near enough BTL territory so you dont have to worry about any questions as to why/when you are relocating. If it is worth 99K then even after solicitor fees, mortgage arrangement fees, and redemptions fees you can get your money back (possibly even a small profit) even if you have to sell it for 80K to get shot of it in double quick time - be very careful what mortgage product you take out as I think some do not allow for immediate pay off - maybe a 6 month period before it can be cashed in.

For arguments sake you make £5k out of the Bradford place and with your initial 16K deposit you have 21K. This gives 47K to go towards the Edgeware flat. This is 20% deposit. Coupled with you salary and profit on rental income with 6 months delay its not unreasonable to get up to 25% deposit there and that can put you back into BTL territory.

I cant see anyway you are going to get into residential mortgage territory unless you make the 30K in Bradford. ~70K deposit is pretty chunky and with mad mad mad saving you could squeeze into residential mortgage levels.

IFA and solicitor advice is definately needed though.

Out of interest, where do you currently live? You mention you own a house but it is rented. Any application for a mortgage will want to know your outgoings and it appears you may be renting or own elsewhere.



If this is true then its a no brainer IMO. OP should take the money and run!

Buy to Let mortgages on New Build Flats are difficult to obtain, and with a valuation of 68k it is likely that the Bradford flat would fall below minimum valuation for many lenders.

grey_lady

How about pulling out of Bradford and keeping the 16k, put that along with the 26k towards Edgeware and assuming you can get a valuation of the 238k purchase price you only need to raise a further £5,600 to reach a 20% deposit - I believe that there is an 80% BTL product for existing landlords, not sure if it excludes new builds.

Although thinking about it, the rent probably wouldnt cover 125% - but long term...

simyboye

I've just rung to find out about bradford. I cant pull out because I was issued a credit note from littlewoods manchester. However, I will have to put that 16k deposit down on any urban splash development.

I didnt sign ANY document to say I wanted bradford. So waiting to hear from the solicitors to see if I can go elsewhere. Leeds - richmond hill looks better. No drugs or prostitution issues there. Hopefulyl?!

GMS

simyboye wrote: »

I've just rung to find out about bradford. I cant pull out because I was issued a credit note from littlewoods manchester. However, I will have to put that 16k deposit down on any urban splash development.

I didnt sign ANY document to say I wanted bradford. So waiting to hear from the solicitors to see if I can go elsewhere. Leeds - richmond hill looks better. No drugs or prostitution issues there. Hopefulyl?!

Do you mean you can use the same deposit on any other development? If so please please seek mortgage advice first.

New build flats are a nightmare to mortgage, especially for a BTL.

Be careful you do not end up in the same situation on a different development.

silvercar

Do you own the home where you live? Do you have any assets? If you have nothing of substance one option would be to tell the developers you are walking away. If you have no money it becomes their problem, if you have funds it is your problem. With nothing to lose, tell them you will go bankrupt if they don't leave you alone. As a fireman I doubt bankruptcy would stop you working. I think its time you stopped swimming with the sharks and left the water.