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What are the risks of buying from a failing developer?

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Comments

  • Ybe
    Ybe Posts: 274 Forumite
    First Anniversary First Post Name Dropper
    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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