New Build Unreasonable Delay

Kvictoria88

Hello all,

I reserved a New Home in June 15 with an estimated completion date of October. Unfortunately I exchanged contracts in September (also when I sold my previous house so have been living out of a bag at a family members house since then)...however, since exchanging the completion date has slipped and slipped and is now scheduled to be June this year. This is 8 months later than I was told when I reserved.

The whole thing has caused so much distress and I no longer trust anything that they tell me. Sounds like it could get worse once I'm actually in the house based on what I'm reading here.

I've written a letter of complaint but I'm not hopeful that I will receive anything positive back. I'm strongly considering withdrawal from the contract, which the consumer code says is possible if the delay is unreasonable and I've had legal advice to confirm this, as it will have been a delay of over 6 months since exchange. I was wondering if anyone has ever pursued this and had a successful outcome that didn't leave them out of pocket? Like I said I've already exchanged so they have a big chunk of my money.

Thank you for any help that you can offer.

marksoton

Presumably the completion date was set when you exchanged.

If so the developer could potentially have punitive costs.

jbainbridge

Talk to your solicitor - hopefully you're not using the developers solicitor (are you)?

Presumably there is something in the contract to say they have to give you a house at some point?

Jon_B_2

You should have a long stop date inserted to the contract which will state that if at the date the house is not completed you can exit the sale without penalty.

davidmcn

marksoton wrote: »

Presumably the completion date was set when you exchanged.

If so the developer could potentially have punitive costs.

No, you don't get a set completion date when the property is still being built.

LittleMax

What stage was the house at when you exchanged? What stage is it at now? What was agreed in contract when you exchanged?

Kvictoria88

Thank you for the replies.

When I exchanged the estimated completion was November 2015. As the roof wasn't on when I exchanged, the maximum that they could delay was 6 months before I could withdraw. They have now breached this, so I can withdraw theoretically. My solicitor has confirmed this. I wondered if anyone has actually done this and can advise if they got full compensation in addition to the deposit paid on exchange, such as legal fees incurred, the cost of finishing touches that I've already paid (carpets etc) or whether they were still left a bit out of pocket afterwards? Thanks again

AnotherJoe

You paid for carpets before you even moved in?!
Anyway I'd say you have zero chance of getting compensation for that sort of thing unless you can get the builder to lower the price to compensate you for the delays, which do sound extraordinary.
Given its such a long time away now, I'd just walk away. Make sure your solicitor advises you on how to do it right.
I'd be sure they have conditions whereby they arent liable if late.

AdrianC

Reservation - June, with October move-in estimate.
Exchange - September, roof not even on, but November move-in estimate...

And you didn't think that... ambitious?

Thrugelmir

What's the cause of the delay?

giddypenguin

Have a conversation with the developer- if you can go in face to face and chat to the biggest manager you can get. Tell them this is unacceptable and you are considering pulling out due to the delay - you may find your stamp duty/'upgrades' become free.

Of course if the land price has significantly increased in that time they could stand to make more money by reselling at a higher price (ie if you stick with it you'll get a bargain) so might be worth bearing that in mind. Although living out of a suitcase at your friend's house isn't ideal at least you have minimal living costs, saving you money?

Also - keep an eye on your mortgage offer (if you need one) - you may have to reapply/extend. It would be a disaster to get to a completion date then realise you have no money!

ETA: new builds get a bad rap on here, while it's true that some people have a really rough time, I would suggest the majority don't (100,000s of new homes are built each year remember ) you have a warranty, and they will correct defects you find in the first few years. I don't personally believe it's as bad as people make out - we'd buy a new build again.