Buying newbuilt, mortgage offer will expire

tlc678910

Hi, if you can get a new mortgage agreed then it sounds like you will be ok.

If you can't remortgage speak to the developer about remarketing your flat in your predicament. If they are not helpful let them know that you will need to highlight your case in the local media and warn others of the dangers of their long completion dates and in-house solicitors not protecting buyers interests. As you have pointed out it is a big project with a lot of flats to sell.

I'm sure your local media will actually be interested in first time buyers being exploited (through lack of knowledge) by developers and their in house solicitors.

Good luck

Richard_Webster

I think your solicitor is negligent if he did not advise you to seek a long stop date so that you could get out of the contract if the builder could not complete before your mortgage expired.

After the houseprice drop in 2007-8 a lot ofpeople caught colds over this issue and builders started to agree these long stop dates related to mortgage offer expiry.

If your solicitor didn't insist on such a clause or explain that the builder would not agree it and warn you properly of the risks then he is negligent and can sue him. So start by asking him about the longstop clause - "You did put one in, didn't you?" He will either say "Yes" or go all slient on you and write suggesting you consult another solicitor about the matter (code for I'm negligent but I'm not admitting it - your new solicitors will haveto prove it....)

Obviously you will have to try to get a new mortgage when the present offer expires and it is only then that any loss can be properly costed. If you get a new offer then there won't be any loss beyond perhaps the application co sts - which you might get your solicitor to pay. If the mortgage is turned down or the property is downvalued then your solicitor's PI insurers could face a largish bill!