Relationship break-up and already exchanged contracts!

garth549

Hi all,

Not posted for a while but I was wondering if I could get some opinions/advice for one of my friends.

Now unfortunately his situation is this:

He's recently exchanged contracts to purchase a new build property. This was a joint purchase with his girlfriend who it now emerges has been cheating on him and sadly it looks like their relationship's probably over. The house has just started being built and is due to be finished in June.

He's now really really down and extremely worried about the house as he can't afford to pay the mortgage on his own. His girlfriend doesn't seem to care or realise the implications of the fact they've exchanged contracts and seems to have just washed her hands of it.

Can anyone advise on the best course of action to minimise the damage? He's mainly worried about losing his entire £7000 deposit and ending up with a CCJ or missed payments/reposession on his credit report etc.

I've suggested his best bet might be to write a letter to the builders explaining the situation in the hope that they will consider rescinding the contract if he pays their costs to date etc. Apparently all of the other houses planned for the plot have already been sold so they should not have any difficulties re-selling the house.

What do you think the chances would be of the builders agreeing to this?

Thanks for any advice

lee111s

There's only one way to find out!

The other option is to let the sale go through, pay for the house for 6 months then try and sell.

ACG

I think what you have suggested is best.

Mrs_Z

He could always get a lodger (or a new girlfriend - oops!) to help paying the bills....

egoode

I don't know if this is possible in the UK but I know in Australia you could sell the property to someone else before it had finished being built. If he can find another buyer himself this could be a possibility.

getmore4less

I would investigate the above there may even be a premium if the properties are all sold.

there is the 6month thing but that might be bypassed by selling on the contract to buy and not actually buying.

Wh05apk

Depending where in the country the property is, I suspect the developers ay be happy to cancel the deal and re-sell as they may now get a higher price.

garth549

Thanks for the replies

Can I just ask - what's the 6 month time scale that's been mentioned? Can you not re-sell a new build house within that time? (nb. He has used the help to buy scheme if that's relevant)

lisyloo

Seems to me that he needs to talk to the builders.
In a rising house price situation they might be happy to cancel but they might want some costs paying (like solicitors fees).

The girlfiiend will almost certainly have to agree as she's a party to the contract (sounds like) so I would try to find a 3rd party who can sort things out there. Is there a brother, sister or friend who could intervene here.
She will be liable too and they need to "knock" some sense into her.

scottishblondie

garth549 wrote: »

Thanks for the replies

Can I just ask - what's the 6 month time scale that's been mentioned? Can you not re-sell a new build house within that time? (nb. He has used the help to buy scheme if that's relevant)

Most mortgage lenders will not offer a mortgage on a property that the vendor has owned for less than 6 months, so that would be a limitation on anyone that wanted to buy the property if he cannot get out of the contract now.

Prothet_of_Doom

Mrs_Z wrote: »

He could always get a lodger (or a new girlfriend - oops!) to help paying the bills....

spare room dot co dot uk all the way.