Advice needed regarding off-plan build delay (I've already sold my flat)

sturgeon

Last May I reserved a new build/off plan 2 bed apartment in Colindale. The development looks great, the price was very good after a lot of negotiating and it's exactly what I wanted. I was originally told the completion date would be December, as it had already been delayed a few months, but likely January.

Last month I received an email update informing all buyers that my block was delayed until March. I spoke again to the company managing the sales (Hamptons International) last week and they said they'd receive another update this week. I just phoned to be told within the last 48 hours, they've been informed of another delay, with the projection being for May 2016.

As I needed to sell my property, I officially did so in September this year and I've only just exchanged. As I heard about the March date I managed to get my buyer to complete February 1st next year, giving me around a month or so where I'd need to find somewhere to live, and that has now been set as the completion date. Clearly I now have some issues, some of which I think I need to pass to the developer to assist me with:

1) My mortgage offer for the new place expires 31st March (Halifax). I'm now going to have to apply again (totally from scratch?) and I imagine that will involve another £500 valuation fee.

2) Theoretically if I had not sold my flat, and sold it say Feb/March next year, I could have sold for £10-20k more. Unfortunately I had no sight of this but did achieve the absolute top end of the price I could have achieved in my area for the property type.

3) The obvious issue, I have nowhere to live. My family live abroad and I am not going to stay with friends for 3 months or more. I was going to put most of my property contents into storage and find somewhere (a whole flat) on AirBNB for the 4-6 weeks, however now I think I'm going to have to go into short term rental, if even possible for 3 months or so as it may be more cost efficient than finding somewhere on AirBNB fully furnished and paying to put most of my flat into storage. Any advice gratefully received here.

4) I have been told by the mortgage broker that I could actually pull out of the purchase, even though I have exchanged. The reason they're allowing this is because the value of the properties have gone up significantly and they could easily resell-clearly this isn't considering the buyers and the significant issues this is causing them. The developer also told me today it's a possibility. I'm almost certain that I won't see any compensation if I did just wait and not pull out. However, as Hamptons are an estate agent then perhaps they can assist me to find somewhere to rent in the meantime. I'm concerned about credit checks etc interfering with the new mortgage application I need to make though (hence why AirBNB was a good option).

5) As a last resort, with the new London HTB scheme (I was buying this new place through the normal HTB scheme with a 20% equity loan) I could theoretically pull out, buy somewhere else, and somewhere better (my income has also gone up slightly plus I can take a bigger equity loan), providing that the building is ready to move into to avoid the same issues. On the other hand, I probably wouldn't even move until February anyway due to my completion date and then if the current place i'm buying isn't delayed then it could have just been a further 3 month wait.

All advice gratefully received. I'm most concerned as to the best living arrangement for the 3 months, which could easily extend again, plus how the reseller (Hamptons) could assist me in this conundrum. Also, do I stick with it or pull out and urgently start looking for an alternative?

On Monday they're apparently sending an email update out with a fuller reason as to the delays.

sturgeon

Can anyone help please?

htbftb

Sorry I can't be of any help but I think I'm being messed around by the same development as you. Are you able to say if you're in building #1, #2 or #3? I'm in the tower and just been told that its been delayed until Q2 2017!!

I think we all need to head outside there and hold a demo against their incompetence

Teacup25

We are being messed around by the same developer. We are in TNQ1 and now delayed till Q2 2017. Can anyone help with what options do we have. We have been paying an inflated rent in our current property and were hoping we move into our newly purchased flat in Colindale early this year.!! Help please

htbftb

The delay is beyond reasonable, considering we were due to have moved in Q4 2015, Q2 2017 is a joke. Both the other two buildings have also been delayed till August and October and the whole project is massively behind schedule. I was told that they were still fitting out interiors, considering the first private sale block was due to be handed over in a weeks time I reckon a lot of porkies have been told in regards to their real progress. As well as the fact it seems impossible to get to have a look at the actual work.

Speaking to them the impression I was given was they won't even be bothering to look at #1 until #2&#3 are finished. My main concerns are that the construction company seems to be in a massive state of upheaval, a large number of redundancies and had parts of it sold off. The costs of re-scaffolding the tower alone is going to run into the £100s of thousands.

Are you buying using the Help to Buy scheme or you buying it normally and already exchanged?

You can either
a) (If using the scheme) pull and out walk away potentially losing the £500 reservation fee and any legal fees so far - there's been no contracts signed at that point so you not bound to buy it. I'd get them to cancel the reservation and try and the demand the £500 back since its their mess up not yours that's causing the issues.

(If buying normally) Have a look at the anticipated build date you have on the contract. I'd get the solicitor to have a look at the wording, and see if he can cancel the contract. The sticking point is whether you actually have to wait the 12 months until after the anticipated build date or you can cancel it now as they've already told you its not going to be complete until after then. Being a contract supplied by them I'll imagine its heavily skewed in their favour.

c) or wait it out, the price is fixed and the prices of everything else has already become more expensive. I'm buying using the scheme, luckily I have the option to live at home so I can still save so if I see something else better that I like I might just pull out and buy it instead. If you wait I highly doubt you'll be able to get any form of compensation for your rent from them though.

sturgeon

Hi both,

Just seen these responses.


I am buying in TNQ2 and apparently the completion date is October. I've now sold my flat, renting in the inflated market until later this year in the hope that for once they do something on time. Totally anticipating another delay though.


I thought it was January 2017 for TNQ1, not Q2? That's terrible. Why would they have to rescaffold the tower?


Also, I am using HTB and had to exchange, all buyers had to exchange to secure properties didn't they? I'll be applying for my third (!) mortgage offer this summer, having already shelled out £500 twice for valuation fees. Plus spending £1000's and £1000's on rent, storage costs, two removals, lost money from selling my property way too early etc.