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What are the risks of buying from a failing developer?

Ybe · 2023-11-13 08:37:56

I am still thinking of buying from Pocket Living but all their developments are doing terribly for sales. Only a handful of reservations across their 3 developments on sale at the moment and on one of their developments (Osier Forest E10), they have given up completely and sold off all 80 flats to the council who will turn…

Comments

Ybe Posts: 446 Forumite

15 November 2023 at 3:15PM

Butti said:

For the one that hasn’t sold I would think it has to do with the relatively short lease term and uncertainty in the whole market over leaseholds. The Government keep making noises about what they will and won’t do that are contradictory which makes buyers twitchy.

Do not buy from a company that you think is in trouble. If they are in trouble they will have been taking money from buyers and lenders but not paying their sub-contractors. If they fail you will be at the end of the queue for payments and get very little back. If the quality isn’t good you also won’t get anywhere.

What’s a short/long lease?

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