Long Stop Date - Legal Rights!

kellywelly123

moneysavinghero said:

I completely get that and we have been accommodating the whole way through but the fact that they have used the materials on two other plots next to mine that aren’t even sold yet is rather annoying. If materials were holding them up then why are the other 2 houses nearly completed. They aren’t sold so won’t have any long stop agreements. I just don’t understand. 

Your house is sold - the others are not. Their priority is going to be getting the unsold ones completed first so that they can sell them on. They are banking on you not pulling out.

Yes you are completely right, they want more sales especially when the development is costing them day by day and that’s understandable, it’s just a shame that they forget about those that have already invested their money and are getting messed around. 

Thrugelmir

kellywelly123 said:

AdrianC said:

kellywelly123 said:
...and we were only in lockdown for 2 months, let’s face it we are now 6 months down the line! 

It hasn't been a binary year - lockdown, or absolutely normal.

The entire country has been in some form of lockdown constantly since March - some areas more than others. Materials supply has been badly affected. Trades cannot work in such close proximity as they would normally, if they're working at all.

I completely get that and we have been accommodating the whole way through but the fact that they have used the materials on two other plots next to mine that aren’t even sold yet is rather annoying. If materials were holding them up then why are the other 2 houses nearly completed. They aren’t sold so won’t have any long stop agreements. I just don’t understand. 

They'll be deploying resources both manpower and materials to their most productive use. The developer will want your house finished as soon as is practical. Suggesting they don't is nonsense. 

AdrianC

kellywelly123 said:

moneysavinghero said:

I completely get that and we have been accommodating the whole way through but the fact that they have used the materials on two other plots next to mine that aren’t even sold yet is rather annoying. If materials were holding them up then why are the other 2 houses nearly completed. They aren’t sold so won’t have any long stop agreements. I just don’t understand. 

Your house is sold - the others are not. Their priority is going to be getting the unsold ones completed first so that they can sell them on. They are banking on you not pulling out.

Yes you are completely right, they want more sales especially when the development is costing them day by day and that’s understandable, it’s just a shame that they forget about those that have already invested their money and are getting messed around. 

You've only "invested" a very small proportion of the purchase price of the house, and you are entitled to get that back should they not get it built on time...

If you take the money back, they have to remarket the property, without the ability for a buyer to tailor the build to their preferences.

They have a massive incentive to get it done. Yet... they haven't been able to.

kellywelly123

AdrianC said:

kellywelly123 said:

moneysavinghero said:

I completely get that and we have been accommodating the whole way through but the fact that they have used the materials on two other plots next to mine that aren’t even sold yet is rather annoying. If materials were holding them up then why are the other 2 houses nearly completed. They aren’t sold so won’t have any long stop agreements. I just don’t understand. 

Your house is sold - the others are not. Their priority is going to be getting the unsold ones completed first so that they can sell them on. They are banking on you not pulling out.

Yes you are completely right, they want more sales especially when the development is costing them day by day and that’s understandable, it’s just a shame that they forget about those that have already invested their money and are getting messed around. 

You've only "invested" a very small proportion of the purchase price of the house, and you are entitled to get that back should they not get it built on time...

If you take the money back, they have to remarket the property, without the ability for a buyer to tailor the build to their preferences.

They have a massive incentive to get it done. Yet... they haven't been able to.

This is what I don’t understand. We have purchased one of their most expensive house types and have part exchanged our existing house, which they have profited from. There are so many risks If they don’t get it done in time. 

1) My mortgage offer ends on 6th Dec and I have already renewed once so may not be able to do it again.
2) The chain for my existing house is getting annoyed and could pull out which means the developer would need to put it back on the market and potentially have an unsold house for a while.
3) I could also pull out which means they would lose the sale of their house plus the profit they have made on mine. 

It baffles me! Why would they not want to get this done ASAP.

AdrianC

They DO.

They CAN'T.

For reasons beyond their control...

Grumpy_chap

What actual losses does the OP suffer if the long stop date is not met?
As the existing house is being part-exchanged to the developer, even if that chain collapses, it is not the OP that suffers the losses.

Sibbers123

I would be a little less pessimistic than others. The fact the contract is silent doesn’t give the developers any advantage. As a result, ordinary contract law would apply that derives from statute and case law. Essentially, paying for the extras has created a separate contract which they may fail to fulfil.

You have paid £8,000 for the extras. If the developers refuse a refund, ask for them to be extracted from the property because after all, you do own them as you have paid for them. Or, sell the extras back to the developer. 

I would like to think any reasonable developer would refund the cost of the extras without to much fuss. If they don’t that would be the time to get legal advice. It’s not great you are using the solicitors recommended by the developer, but they do have to remain impartial and if at any point they breach their duty of care to you, you can report them to the SRA. But that said, you might want to get another solicitor lined up...

kellywelly123

Sibbers123 said:

I would be a little less pessimistic than others. The fact the contract is silent doesn’t give the developers any advantage. As a result, ordinary contract law would apply that derives from statute and case law. Essentially, paying for the extras has created a separate contract which they may fail to fulfil.

You have paid £8,000 for the extras. If the developers refuse a refund, ask for them to be extracted from the property because after all, you do own them as you have paid for them. Or, sell the extras back to the developer. 

I would like to think any reasonable developer would refund the cost of the extras without to much fuss. If they don’t that would be the time to get legal advice. It’s not great you are using the solicitors recommended by the developer, but they do have to remain impartial and if at any point they breach their duty of care to you, you can report them to the SRA. But that said, you might want to get another solicitor lined up...

Aww thank you so much, I regretting posting as started to feel like the unreasonable bad person. This is exactly what I was thinking, I have paid for the extra’s so if they won’t refund they surely I can take those goods. I felt a bit trapped, continue and let them keep fobbing me off or retract but risk losing all that money. 

I am hoping that we can sort things out as we have waited a year for this house but I want to know that there are other options if they are not being reasonable. 

Thank you so much for giving me hope. 

TwinB1005

Hi I've just been reading your thread, I am now in a similar situation but I didn't buy any extras but I also went with the recommended solicitor and they appear to be working far more in favour of the agent than me I wish I'd got my own. They want me to pay them nearly £800 just to rescind the contract  my contract states that I get £1000 towards legal fees so I've asked them to go back to the agent and ask them to pay based on the fact that they've had my deposit for well over a year longer than expected and the agent keeps telling me I'm still in contract. I'm not expecting a reply I think they are working together but I am planning on rescinding the contract myself once the long stop date has passed. Did you get your money back for the extras? Long time ago I know but just interested to see how it turned out for you

vic_sf49

The original poster was last active on here, in Aug 2022, so I wouldn't hold your breath while waiting for an answer.