Fixed completion date won't be met by home builder

Sarah_jane25

Hi All,

I'm new to this but have read so many threads over the last few days! I just want to know if anyone can advise on my situation.
My partner and I have exchanged contracts on a new build property and we were given a fixed completion date of 27th May. We were reluctant to exchange with this date as the original estimate for completion was June/July and we were banking on a few more months savings. Anyway the builders (Bellway) pushed and were confident in 27th May so we agreed and exchanged. We currently live in rented accommodation and gave notice last week. The property was let the next day and we are due out by 31st May.
Anyway the saleswoman from Bellway called us on Friday to say they were looking to delay and "would that be an issue"...!! Yes very big issue, my daughter has been accepted into a new school near the new house, we have no family nearby and no friends with enough space for the three of us.
Our solicitor is great and was on the case before we were even made aware, saying we would be seeking damages, but realistically what damages are we likely to be able to recoup. I have read everywhere that a new home builder will not offer a fixed completion date until the house is built, but that was not the case for us, we were given a fixed completion date before the build was finished...(also written into the contract)
Any advice much appreciated! I have a seriously stressful job for which I commute 100 miles per day to Birmingham, I struggled to get a week off for this house move and now it's a waste, and my stress levels are sky high now

Thanks

eddddy

It sounds like the solution could be something like this:

You rent a property near the new house from 27th May until the builders are ready to complete.

Damages to claim include the cost of renting the temporary house, the cost of the second removal (from the temp house to the new house), temp furniture storage costs (if any), etc.

visidigi

Problem with rent is usually the 6 months minimum.

A family friend of ours recently ended up on the local Novotel for three weeks after the house builder failed to deliver on time. The builder paid for the hotel...

Sarah_jane25

Thanks, I dread the thought of staying in a hotel for a month but I think it will come to that.

eddddy

visidigi wrote: »

Problem with rent is usually the 6 months minimum.

Yes - if it's impossible to find a suitable rental for less than 6 months, it could get very expensive for the builder... 6 months worth of rent.

If the OP is happy to stay in a hotel, the builder would probably be pleased. Or perhaps a holiday apartment or similar..

duchy

Depending on where you live you may be able to get a short term (weekly let) of an apartment (usually used by business people) or a holiday let of several weeks or even an airbnb let. All would be better than a hotel room without cooking facilities and separate bedroom as you have a school age child.

Bellway should also be picking up additional expenses like storage plus an amount for inconvenience.

eddddy

Sarah_jane25 wrote: »

Thanks, I dread the thought of staying in a hotel for a month but I think it will come to that.

Not really.

The builder will be in breach of contract. So you can claim damages...

The primary purpose of damages in contract law is to place the injured party in the position they would have been in had the contract been performed.

Link: http://e-lawresources.co.uk/Contract-remedies.php

If the builder was to perform the contract, you would be living in a 3 bed house (or whatever) for that month.

So the builder should pay damages to put you back in that position - i.e. living in a 3 bed house for that month.

If you voluntarily agree to live in a hotel for that month- that's fine. But you don't have to.


Edit to add...

(But just FYI - you wouldn't get any damages for 'inconvenience'... unless the builder decides to make a 'goodwill gesture'. And I think that's unlikely.)

Derboy

This all depends on your actual contract. You need to speak to your solicitor to see what your options are. My newbuild has been delayed 4 times in total. My missives (Scotland) state that the entry date would be sometime between Jan and March and that if the actual date ended up a month longer than this (April at the lastest) then I would be entitled to resile from the missives and with a refund of all monies paid to date.

This meant that I could walk away without penalty and when we explained that we were considering this, they came back and agreed to cover all of our out of pocket expenses. In my case we agreed that they would cover the rent from the originally promised entry date (Jan) till when I actually complete. I had already negotiated a package of freebies after the first delay.

If your contract allows you to walk away then you have bargaining power. If it doesn't then you don't as you'll be obliged to complete regardless. I asked my solicitor to confirm my options first. I then approached the sales manager and MD of my builder rather than the site sales person and did so very amicably and with a view to seeking a fair solution. I then informed my solicitor of the outcome. I'm sure others have tried a different approach but this worked out well for me.

Good luck.

martinsurrey

The usual solution I have seen is that the house builder rents a similar size holiday rental property for the duration.

(go on a site like cottages4you to see whats in your area.)

Hotels are generally only used for a few days while snagging is done.

Sarah_jane25

Quick update for any future searchers.. currently the developer has only offered to pay deferred interest at the going rate which is approx £22 per each delayed day. Obviously we have not accepted this and our solicitor has asked them to cover hotel, food, laundry, storage and removal costs. They are very reluctant despite this all being their build directors' fault for giving out the first ever fixed completion date before a roof has been finished! They have messed up but aren't too happy to put it right. Our solicitor has advised that we should issue a "notice to withdraw" from the sale to force them to play ball... but at the end of the day it's our dream house and we don't want to jeopardise the purchase.. not sure how far to push it at the minute!

Sarah

mrschaucer

Surely if you wait until completion date and they fail to complete they are in deep do-do and breach of contract? You give them a notice to complete and they have 10 working days from then (I think). There's no messing, they ARE liable for all costs etc. £22 per day is a ludicrous offer and the housebuilders' legal advisers need to get their act together.