Funding of residential mortgage - grounds to force completion?

Blackter

I am in a complex situation and hoping that someone may be able to advise.

We are purchasing a new build. The house itself is complete, however the property isn't as the developers are building social housing on the plot next to the property and are using part of our plot for scaffolding.

In order to fund the purchase we are remortgaging our current property to a buy to let which will be used as a deposit for the residential mortgage. Due to the delay in the building of the property our BTL mortgage offer expires 9th March, the residential mortgage expires end of April. The developers have been trying to get us to complete on the property even though it is not ready. Their latest attempt is to say we must either complete or pull out by 9th March as our mortgage offer expires. I talked to the agents and informed them that this is the BTL mortgage, therefore should be of no concern to the developers. Their response was that the developers needed to know that we have the funds. Unfortunately its the weekend so can't talk to my solicitor & it's really stressing me out. Can they really do this?

stator

It all depends on your contract with the developers I'm afraid. You'd have to read it and see under what circumstances they can cancel the deal.

Thrugelmir

Why does scaffolding on the plot make your property incomplete.

davidmcn

Can you expand on what you mean by them "using part of our plot for scaffolding"? Is this preventing access to the house?

ACG

How is the scaffolding preventing you from completing?
Is it just the fact that its there or is there issues because its there? (ie its blocking you entering the property?).

You really need to be speaking to your solicitor about this. This is where a good one will probably come into their own.

davidmcn

ACG wrote: »

This is where a good one will probably come into their own.

Even a mediocre one ought to be able to tell you what the contract says!

ACG

But a good one will likely get it resolved rather than rolling over.

Blackter

The house is meant to have a side passage between the house and the flats which then forms part of the garden and belongs wholly to the plot. They have put up a temporary wooden fence in the back garden, so when the scaffolding is removed they are going to have to build a wall to complete the garden. I can live with the reduced garden. My real problem is that they would not give me a definite date when it will be removed, the wall built and the plot properly complete. They are not prepared to compensate either, even though after completion their scaffolding will be on our land. It literally butts right up against the house so i am worried that if they cause any damage in taking it down I will be in for months of hassle. We wouldn't even have access to our utility meters!

kingstreet

If you've exchanged contracts "on notice" and the builder serves notice to complete, you complete.

Otherwise you will be in breach of contract.

I cannot say how this scaffolding issue impacts that. Has a NHBC cover note been issued, as completion couldn't take place without that?

You need a solicitor view on this. It's outside the scope of an internet forum.

Blackter

Many thanks for all your responses. We have yet to exchange as NHBC have not signed the house off. The estate agent requested a note from me to say that I was aware of the scaffolding for the NHBC sign off. I wrote a letter to say that I wasn't happy with it and sent it to both agent & NHBC direct. I believe this may have annoyed the developers as the NHBC did not sign it off. i will discuss with my solicitor on Monday.

kingstreet

You don't normally have NHBC sign-off for Exchange Of Contracts, as the property can still be a hold in the ground when you exchange.

However, you have to have it for completion.