The Distillery - Galliard Homes

maja1969

Is anyone having issues with completing and valuations on this development? I reserved two apartments with Galliard Homes about four years ago, when the world was a very different place, and am now concerned that a: The apartments wont hold up to valuation, and b: I wont be able to finance them without putting down about 60% of the purchase price (or more if the valuations come up short) which I cant do. Jane Dorkin of Galliards was most unhelpful, verging on rude and threatening at times, suggesting that I should sell my family home to finance the apartments. I would be interested in hearing from others in a similar situation please?

maninthestreet

maja1969 wrote: »

Is anyone having issues with completing and valuations on this development? I reserved two apartments with Galliard Homes about four years ago, when the world was a very different place, and am now concerned that a: The apartments wont hold up to valuation, and b: I wont be able to finance them without putting down about 60% of the purchase price (or more if the valuations come up short) which I cant do. Jane Dorkin of Galliards was most unhelpful, verging on rude and threatening at times, suggesting that I should sell my family home to finance the apartments. I would be interested in hearing from others in a similar situation please?

Have you exchanged contracts on either of these apartments?

Richard_Webster

Have you exchanged contracts on either of these apartments?

I think we must assume that OP has, as otherwise why be so concerned?

Essentially reserving and exchanging on flats 4 yaers before they are built is not much better than gambling and when you gamble you have to be prepared to lose. Was Op properly advised by his /her solicitors as to the risks involved? If not they could be liable.

dopester

maja1969 wrote: »

suggesting that I should sell my family home to finance the apartments. I would be interested in hearing from others in a similar situation please?

Why did you buy it?

Were you planning to hold on to your "family home" as well as buy the apartment you signed contract to buy? I can't see Galliard's position as too unreasonable. You were happy with the value at time you signed to buy, now time to pay... and if you have equity in in your family home, that could be sold to pay what you owe.

Just the other day I was just reminding myself of "specific performance" and wondering how other off-plan buyers have been faring.

Some links below to begin your education.

http://www.timesonline.co.uk/tol/money/property_and_mortgages/article7051479.ece

http://www.investorschronicle.co.uk/Tips/default/TipsOfTheWeek/article/20090710/1bd7f27c-6c6f-11de-8c65-0015171400aa/The-pitfalls-of-newbuild.jsp

http://www.thisismoney.co.uk/mortgages-and-homes/article.html?in_article_id=480366&in_page_id=8

http://www.berkeleyhomescollective.com/about/

http://www.dailymail.co.uk/property/article-1240546/Landmark-case-sees-developers-awarded-damages-buyers-walked-away-property-values-tumbled.html

dopester

Also

BBC News. 8th October 2009.
http://news.bbc.co.uk/1/hi/business/8287828.stm

"There is a worryingly widespread and entrenched belief among buy-to-let investors that if they decide to withdraw from a purchase for which they have exchanged contracts, that only their deposit is at risk," says Mr Raj.

" The legal position is quite clear. They are legally obliged to complete on the transaction.

"Damages are not even restricted to the difference between today's market price for that property and the price they contracted to purchase at."

The legal term of this process of forced purchase is an order for "specific performance" - an injunction granted by a court which has fairly broad discretion.

LEGAL REMEDIES

• Order of Specific Performance: An injunction to make a buyer perform his or her part of the contract and complete on the purchase agreement

• Rescind the contract: The seller cancels the contract, keeps the deposit and retains the property in an attempt to resell it

• Rescind the contract and sue: The seller goes to court to claim any unpaid deposit and then tries to resell

• Damages: If successful, the buyer who pulls out pays the seller the difference between the contract price and the value at the date when completion should have taken place

maja1969

Thanks for the replies. I have exchanged, yes. The problem is not that I wish to pull-out of the contract, but that the IFA's with whom I have spoken seem to suggest that there are very few banks, if any who would even loan on these flats, being that they are in a tower (which for me was the attractive thing) - apparently "lending criteria has changed", and they dont like financing towers or 'off plan'. I can't afford to buy them cash. I am aware of my legal obligation to complete, but what I specifically wanted was a steer on Galliards likely actions should I not be able to complete on both, ie: if I do complete on one. With so many 'off plan' flats and the economy/banks being as they are, does anyone have any relevent experiences to share please?

Richard_Webster

They will probably sue you for their loss - the difference between what you agreed to pay and what they eventually sell the flats for.

maja1969

I have just spoken to someone else at Galliards, who was much more helpful. He said that they are quite used now to working with people on these types of issues, due to the economy, and are more than willing to help where they can - they dont want to sue people and they want where possible to help. I do feel reassured. Thanks for the replies.