New Build delay - walk away advice please!

yellowpollycat

Hi, we agreed to buy a new build with Harron Homes in May 2017 with an estimated completion date on November 2017. They took our house in part exchange and we exchanged contracts in July 2017.

Since then the build has been delayed - first to March 2018 (which we agreed to), then June 2018 (which we complained about but stuck with it) but yesterday we were told it would be September 2018 at the earliest. This means we have to reapply for another mortgage. The contract does not have a long stop date either.

There is no reason for this except the builder keeps rescheduling - the foundations were laid in November 2017.

We've now had enough and don't trust that it will be September either - no work has been carried out on the house for weeks.

I understand that we can walk away as this delay of 10 months would be considered unreasonable. Has anyone ever done this? If so, is it complicated, how long did it take and were the conveyancing fees refunded?

Could we also ask for compensation and loss of value on our property? It was put on the market below market value for a quick sale and has now been sold twice - the first buyers bought in June and waited until December and withdrew, the current buyers bought in January 2018, and their mortgage offer runs out in July.

Any advice would be welcome - we are viewing a couple of houses at the weekend with a view to starting again.

TIA

davidmcn

yellowpollycat wrote: »

The contract does not have a long stop date.

I understand that we can walk away as this delay of 10 months would be considered unreasonable.

From where did you get this understanding? If you wanted a right to walk away you should have negotiated a long stop date.

Aylesbury_Duck

What do the terms of your agreement with them say? If they don't mention anything about being able to walk away in the event of serious delays, you should take some proper legal advice on your options.

Compensation for the loss of value of your own property will be a non-starter. Property prices are relatively arbitrary, you will find it almost impossible to prove a loss of value because what person x is prepared to pay for it compared to person y is not solely a function of market value. You admit yourself that you put it on the market at less than the supposed market value, so you could say that you have willingly de-valued it already. If you are able to claim anything, it will only be for your quantifiable losses.

AnotherJoe

What a mess. I would start with legal advice, because the fact you've apparently sold your house complicates this to the nth degree. Perhaps your builder is in financial trouble.

ps have you gone to the builder and told them you plan to start legal proceedings to rewind this whole deal? Whilst you may not have a leg to stand on, they may decide its quicker to finish your place than be involved in legal proceedings. Also, does your house insurance include legal cover?

LandyAndy

AnotherJoe wrote: »

, they may decide its quicker to finish your place than be involved in legal proceedings. ?

And then you could be left with your house in the middle of a building site sine die.

I think I would be exploring the possibility of unwinding the whole thing but you might face a penalty.

crystalpinks

How far are they into building now? This may give some idea on how soon the house COULD be completed by, but obviously no garantee if they!!!8217;ve already pushed it back so far!
Surely they should explain the reason for the delay- that!!!8217;s a VERY long time to build a house, could they be in financial difficulty?

ciderboy2009

I'm really surprised that your solicitor allowed you to exchange contracts without a long stop date - particularly as a mortgage is required.

I would start by asking them what you should do now.

yellowpollycat

Hi all, many thanks for your replies. Our solicitor says we can rescind on 24 May, 6 months after the original estimated completion date as it is deemed as unreasonable. However, we will only get our reservation fee back - although we can ask for the conveyancing fees to be reimbursed there is no guarantee they will do this.

He is writing to ask for a supplementary long stop date of September with compensation if not met given the delays so far and lack of communication - but again, they may not agree.

If we go down this route, does anyone have any idea when we will be legally free to put our property back on the market? All my research says you can rescind but I can't find out how long the process takes as no one seems to have done so :-(

I'm hoping it is simple - but given it is a legal issue the cynic in me kicks in ...

tia

yellowpollycat

crystalpinks wrote: »

How far are they into building now? This may give some idea on how soon the house COULD be completed by, but obviously no garantee if they!!!8217;ve already pushed it back so far!
Surely they should explain the reason for the delay- that!!!8217;s a VERY long time to build a house, could they be in financial difficulty?

I know - the foundations were laid in November 2017, so we thought June was a slam dunk! It is only now at second lift, so no roof etc. We think that this row of 3 houses were started and then replanned to finish at the same time as the block, ie the additional 5 houses at the back. Their foundations were in February and they are also at second lift. It is !!!! though ...