Builders Gone into liquidation

[Deleted User]

Hi,

I am currently buying a repossesed house. The deadline to complete was 4 weeks ago now.

The house im buying is freehold however the development has a lease with covenants.

My solicitor is having trouble obtaining the management info as the builder has gone into liquidation. She is concerned that there may be a service charge or planned works which could prove costly.

Im worried now theres going to be hefty service charges to pay & also the time its taking to exchange.

Does anyone have any advice on anything I can do to hurry things along. The stress and worry of possibly being gazumped is really getting to me now. Added to that my buyers are putting pressure on to exchange.

Someone has mentioned to me revising my offer & maybe setting a deadline.

Any comments would be appreciated.

GDB2222

You may just have to take a view on this. I don't see how the mortgagees are going to be able to magic these documents out of thin air if they don't exist. You should be able to get a reduction because of this, but be prepared to walk away.

[Deleted User]

What kind of % reduction would you advise?

My solicitor has advised me not to proceed if this info is not available as there could be lots of unknown costs & my mortgage company prob wldnt be happy.

GDB2222

Dunno. 10%?

chappers

I would take your solicitors advice, she is right these are unknown and could run into thousands.

GDB2222

chappers wrote: »

I would take your solicitors advice, she is right these are unknown and could run into thousands.

Yes, but if you get a big reduction ....

[Deleted User]

Yeh thats a definate possibility, I will have a word with my solicitor. 10% would be 16k so quite considerable, u think they are likely to accept? The estate agent has told me theres been no other offers etc. I am ready to exchange & any other potential buyers are going to be in the same predicament.

GDB2222

Well, the sellers are quite institutionalised - they are box-tickers. They have valuations, and they probably have little discretion to go below those. You'll have to persuade them that there is a valid reason to reduce the price that their own valuers did not know about. Maybe a letter from your solicitor explaining what the problems are? Talk to your solicitor about what she thinks is the best approach and what letter she can provide for you to send supporting your lower offer.

[Deleted User]

thanks for that, I shall give her a call tomorrow to see what she thinks. I will be glad when its all over think ive aged 10 yrs in the last 2 months.

sonastin

Get your solicitor to make the point to the solicitor representing the mortgagee as well. Dealing with repossessions is an even longer chain of chinese whispers than a normal sale. Your offer will go through the estate agent to the asset management company to the mortgagee. The message will be diluted by the time it gets to the person making the decision. If it also comes via your solicitor to their solicitor to the mortgagee's decision maker, you stand a better chance of him understanding the problem and its implications.

Thrugelmir

funk_punk wrote: »

The stress and worry of possibly being gazumped is really getting to me now. Added to that my buyers are putting pressure on to exchange.

Then asking for a price reduction isn't a good idea.