Buying from a bankrupt developer

AdrianC

Early_Retire_Free said:

1. I am pretty certain we are a secured creditor
2. It would be difficult for the administrator to continue build as the developer does not have any 'own' staff.  The entire build is sub-contracted (and they have fallen out with their main contractor due to non-payment).
3. On the NAV - I was basing that calculation of cost rather than market value .....but yes, you're right, it would not take much to recoup the investment....but that's the risk of course.

1. Secured against what? Not the house you haven't bought yet... Remember, the return of the deposit would be due when you're released from the contractual obligation to buy it...
2. And "use subs" is why it'd be easy to build-out.
3. But the administrator is under a legal duty to get the maximum return for the creditors.

Early_Retire_Free

davidmcn said:

Early_Retire_Free said:

1. I am pretty certain we are a secured creditor

I'm pretty sure you're not. What makes you think you are?

I can't post links yet but if you google "Blaser mills off plan property purchases" that legal case is very similar.  In fact its more straightforward as we can clearly identify the land and building to which our deposit attaches

Slinky

Is swapping your purchase to the other property that is complete (if it is still unsold) worth considering?

Early_Retire_Free

Slinky said:

Is swapping your purchase to the other property that is complete (if it is still unsold) worth considering?

Its still unsold but not of interest to us as much smaller.

shinytop

Early_Retire_Free said:

davidmcn said:

Early_Retire_Free said:

1. I am pretty certain we are a secured creditor

I'm pretty sure you're not. What makes you think you are?

I can't post links yet but if you google "Blaser mills off plan property purchases" that legal case is very similar.  In fact its more straightforward as we can clearly identify the land and building to which our deposit attaches

I can see where you're coming from but if this wasn't your house would you invest your money and time in a building company and, in particular, this one, with all its problems?  Do you have the skills to run a company like this - do you know anything about the house building industry? I accept you're already involved as you've paid a deposit and you might be John Bloor or similar  

Early_Retire_Free

shinytop said:

Early_Retire_Free said:

davidmcn said:

Early_Retire_Free said:

1. I am pretty certain we are a secured creditor

I'm pretty sure you're not. What makes you think you are?

I can't post links yet but if you google "Blaser mills off plan property purchases" that legal case is very similar.  In fact its more straightforward as we can clearly identify the land and building to which our deposit attaches

I can see where you're coming from but if this wasn't your house would you invest your money and time in a building company and, in particular, this one, with all its problems?  Do you have the skills to run a company like this - do you know anything about the house building industry? I accept you're already involved as you've paid a deposit and you might be John Bloor or similar  

In my youth I was finance director of a house building company .....so yes I know a bit (some would say enough to be dangerous)

shinytop

Early_Retire_Free said:

shinytop said:

Early_Retire_Free said:

davidmcn said:

Early_Retire_Free said:

1. I am pretty certain we are a secured creditor

I'm pretty sure you're not. What makes you think you are?

I can't post links yet but if you google "Blaser mills off plan property purchases" that legal case is very similar.  In fact its more straightforward as we can clearly identify the land and building to which our deposit attaches

I can see where you're coming from but if this wasn't your house would you invest your money and time in a building company and, in particular, this one, with all its problems?  Do you have the skills to run a company like this - do you know anything about the house building industry? I accept you're already involved as you've paid a deposit and you might be John Bloor or similar  

In my youth I was finance director of a house building company .....so yes I know a bit (some would say enough to be dangerous)

Good luck anyway.  Buying a house that is finished and has already been lived in is bad enough; this must be a real concern.  

pattypan4

I lived in a development of similar size, the developer went bust soon after we completed and we had to get any snags done via the architects insurance. The remaining 2 unsold, almost finished houses, were sold by the building society, that was 8 years ago. Neither has a completion cerificate and both owners would find it almost impossible to sell, I sold mine and these days every certificate was required by the solicitor for my buyer. The completion certificate is paramount and I believe can only be issued if the builder is on site. Neither of those properties came with any architects insurance and both owners found some serious hidden slip shod work to avoid expense, they have had to rectify it themselves. If you can get your deposit back, then find somewhere else.