New build delay - monetary compensation

Legacy_user

Hi all,

Reserved a new build property in April 2018 for completion November 2018. I keep getting told by the developers that it’s been delayed time and time again, a month at a time. Last month I was told that they will 100% be ready for end of March as it’s the end of the fiscal year and they have to have it done by then. After much chasing I have now been told that it may run a few weeks over this still. This makes it over 5 months delayed. I am furious as I booked leave from work for the end of March and now won’t be able to get time off at such short notice for mid to late April. I understand delays happen on new builds but this seems excessive and annoying after I was guaranteed March.

After much complaining they have said they may be able to look into offering monetary compensation. The property is £350k - what would be deemed as reasonable in this scenario and should I accept the first figure they offer? I know they’re under no obligation to do so but how can I keep the ball in my court?

Thanks,
Dan

chunkytfg

Assuming you've already exchanged contracts then the house price is already set. maybe they'd throw in some upgrades.

What actual financial loss have you suffered?

System

Have had to pay approx £6500 more on rent at our current place which could have gone towards our mortgage instead, mainly.

Dean000000

danyalaziz wrote: »

Have had to pay approx £6500 more on rent at our current place which could have gone towards our mortgage instead, mainly.

Just to ground expectations, a payment on mortgage of say £1200/month is actually something like £950 interest, and £250 capital repayment.

Just in case you were thinking anything like 6.5k was your out of pocket cost....

On your basis it’s closer to 6 x £250 (or whatever your capital portion you’d be paying off monthly)

And remember, offset that against 6months you HAVENT been paying for homeownership....

Like say, building insurance? Some landlords pay council tax / utilities etc....so that might also reduce you actual out of pocket expenditure

lincroft1710

Dean000000 wrote: »

Some landlords pay council tax / utilities etc....so that might also reduce you actual out of pocket expenditure

Unless it is a "Council Tax, House in Multiple Occupation", in law CT is the responsibility of the tenant not the landlord.

System

@dean000000 No I understand however I wouldn’t have had to pay it to my landlord and I’d have to pay it towards my mortgage instead, interest or not. I’m still going to have to pay this to my lender regardless and I could’ve been 6 months in already. It’s a brand new build which comes with a 10 year warranty and I pay all my bills and council tax at present.

But going back to the original question, what would be reasonable compensation and should counter it when they offer me something?

TIA

Dean000000

danyalaziz wrote: »

@dean000000 No I understand however I wouldn’t have had to pay it to my landlord and I’d have to pay it towards my mortgage instead, interest or not. I’m still going to have to pay this to my lender regardless and I could’ve been 6 months in already. It’s a brand new build which comes with a 10 year warranty and I pay all my bills and council tax at present.

But going back to the original question, what would be reasonable compensation and should counter it when they offer me something?

TIA

A grand, absolute maximum.

Anything above £500 is reasonable

Anything below is probly taking the mickey abi.t

G_M

danyalaziz wrote: »

Hi all,

Reserved a new build property in April 2018 for completion November 2018.

Maybe I've missed in in subsequent posts, but .. what does this mean?


Was November 2018 a contractually binding date? An estimated date? something else?


That needs clarifying before you can start talking about whether compensation is a voluntary goodwill offer or is legally enforciable .

davidmcn

G_M wrote: »

Maybe I've missed in in subsequent posts, but .. what does this mean?

Was November 2018 a contractually binding date? An estimated date? something else?

That needs clarifying before you can start talking about whether compensation is a voluntary goodwill offer or is legally enforciable .

In normal residential purchases of unbuilt properties, the completion date is only ever an unenforceable estimate - my reading of the OP was that they've acknowledged they have no contractual right to compensation.

What might be more relevant is whether the contract has a longstop date, and if so whether that's been reached i.e. can the OP threaten to stomp off in a huff at this stage.

System

No nothing is legally binding other than the long stop date of 30th April 2019. I know, as I have said before, they don't have to give anything. I'm wondering what would be reasonable as a good will gesture.

CarlaAEl

Curious if any compensation was granted here. I exchanged on a new build November 2019 which was due to complete April 2020. Completion date has moved 6 times since then. Now looking at December. They sent a letter to say estimated notice would be this week and then late last night pushed it by another month. Is there anything monetary or otherwise I can push to get from the developer? (Note there are no changes to fixtures and appliances as all are of the same high standard). I was wondering about furniture - I’ve already ordered most so have invoices. Any advice appreciated ok