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

telfordwhite

Nobody likes a Smart-4r$e, and there are plenty of them on here.

OP made a perhaps less than informed gamble on historical trends and lucked out. He knows this and is asking for advice on future action which may reduce his loss.

He doesn't need all the "I told you so's" he is getting.

lincroft1710

dkmax wrote: »

And the applicable law could be that of N.Ireland or England & Wales, not that there's a great deal of difference. The case might also set a precedent in E&W.

The "applicable law" would be that of E and W, as that is where the flat is situated. NI law as Scottish law differs from English law in some aspects. However the important factor in the judgement is the financial standing of the would be purchaser, in this case they had no assets. Phobos has assets, he cannot rely on this judgement to get him out of the hole he is in.

Phobos

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silvercar

how do I get out of it?

If you can't raise the funds (by borrowing against your main homes or unsecured if necessary) then the other option is to sell it on quickly. If you sell to someone for 155k, that means the 3 of you finding 30k between you. If that means you can walk away from this mess its worth it.

Phobos

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myhouse_2

Frankly 6k to a negotiating company to do what you could have done yourself is madness.
Interested to see how things work out for you. Glad you're a big boy and can handle the digs - best of luck again.

JQ.

Phobos wrote: »

Cheers again Silvercar,

We went over the valuers report today & we found some discrepancies which we hope to over come, i'l do my best to explain

In 08 we agreed to buy at £186k as we buy so early, normal price was £219k total reduction was £33k (Keeping it in round figures)

We paid 9k roughly 5% deposit to builder & a further 6k to the company that arranged discount.

It seems the valuer has only done a half arsed job and possible just attempted a 'Paper Valuation'

He has obviously been told we had 33k reduction but here is what we think he did. He took the 33k (Discount) away from the 186k price opposed to the 219k price. This has been confirmed by his company & now we wait until he gets back to us & the mortgage lender in the hope he can come back in around the 180k mark.

I really think you're going to struggle going down that route. It was never actually worth £219,000. It's exactly the same as all the sofa companies advertising their sofas for £1,000 for 1 month in 1 of their 200 shops and then having a 50% sale. It's a £500 sofa and always was a £500 sofa, but 50% off still gets people through the door.

These independant brokers were just doing the same, inflating the prices and then pretending to get you a massive discount - it was all part of the game. The developer would often sell the first few apartments to their mother in law for £219k just to get some prices on the Land Registry to keep the illusion going.

No valuer with any sense is going to value a flat today at the same price as was agreed off-plan in 2007. In fact the drop that you've suffered does not seem too bad. I've got a few mates who bought flats in Manchester city centre at auction in 2008/09 for £60,000 - the original owners paid £175,000 to £200,000, before being repossessed.

What's the rental income like on the new apartment ? - could you find the shortfall for the equity and cover all your interest costs with the rent?

Could you sell your own house and move into rented to cover the equity neede?

Don't suppose you could move to England and live in it?

Any chance the developer is going to go bust? If they borrowed off an Irish Bank, as most did, they may not even chase you for the money once they pull the plug.

Your best bet may be to start negotiations direct with the developer - at least then you can find out how much you need to raise to walk away from the deal.

Start advertising the flat today with an estate agent to see if you can flip it on - after all if they don't sell it you've no fee to pay and the offers received will give you a true value for the property.

Good luck.

JQ.

myhouse wrote: »

Frankly 6k to a negotiating company to do what you could have done yourself is madness.
Interested to see how things work out for you. Glad you're a big boy and can handle the digs - best of luck again.

Which probably rounded-up to a nice £10k with the kick-back from the developer. :beer:

GDB2222

I'm going to be rather blunt. Don't even try to complete on this flat. Sell your home, assuming there's some decent equity in it. Take the money, change your name, and emigrate. Or, at least, consider that option. You are keen to preserve what's left of your inheritance, and pouring £187k into a flat worth £160k is not going to do the trick.

ILW

GDB2222 wrote: »

I'm going to be rather blunt. Don't even try to complete on this flat. Sell your home, assuming there's some decent equity in it. Take the money, change your name, and emigrate. Or, at least, consider that option. You are keen to preserve what's left of your inheritance, and pouring £187k into a flat worth £160k is not going to do the trick.

Is it worth fleeing the country for £27k?