Is this the beginning of the end or is there a way out??

Phobos

Deleted Content

dkmax_2

lincroft1710 wrote: »

This reinforces my point that the Irish case doesn't appear to help or apply to Phobos.

The case cited was in Belfast and the OP is living in the same jurisdiction which is why the OP mentioned it in the first place. Of course, there may be other reasons the case might not be relevant, not least the facts of the case.

silvercar

Could you remortgage you main home to provide extra funds to buy this apartment?

dkmax_2

Phobos wrote: »

In response to Dkmax, firstly, any money we have already invested we CAN afford to loose, the thing is, its our HOMES that get brought into the equation, we didnt invest them.

You were committing yourself to borrowing money at some point in the future without any guarantee of being able to do so. Even if you did manage to borrow it, that mortgage would always be exposed to a negative equity risk.

So when you invest in property, it is not just your deposit that you are potentially losing but also a substantial value of the loans. As such every asset you own was always part of the equation.

I came here asking for help, not for pointless, needless comments that have no meaning.

If you had confined your comments to the basic facts then I would have confined my own but you opened the door when you asserted that you were doing something smart and implied that this is simply a case of misfortune. You gambled and lost so please don't dress this up as anything other than a bet that didn't pay off.

You need to get legal advice but it is very likely you will have to pay something. I would say your best hope is an negotiated settlement via a dispute resolution service rather than accumulating legal fees. You'll have to persuade the developers that they'll get more out of you this way than chasing you through the courts.

silvercar

There are two way outs:

Find the money from somewhere eg secured loans against existing homes, unsecured loans, bank overdrafts etc

Sell the property on to a new buyer as soon as possible. It may be that you have to stomach a loss to do this ie you have to make a contribution in order to let a new buyer come in at a lower price.

You could try and negotiate more time with the developers for either option.

muskoka

I dont have any constructive advice, but do feel for you. A lot of people made money, but a lot didn't. I'm very sorry & hope you manage to figure something out.

ILW

muskoka wrote: »

I dont have any constructive advice, but do feel for you. A lot of people made money, but a lot didn't. I'm very sorry & hope you manage to figure something out.

Just like any investment offering possible high returns. Trouble is that some believe that housing is always a sure thing.

silvercar

If you can sell it on for the valuation of £160k that is a drop of £26k on your agreed price. That leaves you and Mr B to come up with £13k each to make this nightmare go away.

Annisele

In essence, you've agreed to pay £186k for a property worth £160k and you can't raise enough finance against that property.

There's a possibility that the developers would let you walk away for a payment of £26k (£186k agreed less the £160k actual value) - especially if you found a buyer, or stumped up a further payment to cover the developer's selling costs. Can you raise £26k? Can you find a buyer to step into your shoes at £160k, or (£160k - x) if you can stump up (£26k + x)?

I'm not sure from your posts whether you've approached lenders for £186k secured against that particular property, or whether you've tried to raise £186k from other sources as well (eg secured against your own homes as well as the new property). Have you tried the latter as well?

(It doesn't help when you insist that you only invested money you could afford to lose, when that was clearly not the case. I know that sounds unsympathetic - I'm not, I do feel for you - but it's not a huge surprise that your insistence will put people like dkmax's backs up.

You didn't only invest your own money - you used leverage to effectively invest money that belonged to the bank. That can work out very well in good times: if you take out a £95k mortgage on a property worth £100k, and prices go up 10%, you see a 200% return on your money (before accounting for interest). However, if prices go down 10% with the same starting figures, you lose all of your money and a further £5k, and you still have to pay the interest).

lincroft1710

dkmax wrote: »

The case cited was in Belfast and the OP is living in the same jurisdiction which is why the OP mentioned it in the first place. Of course, there may be other reasons the case might not be relevant, not least the facts of the case.

The flat he was intending buying is in England.