Builder who paid my deposit went bust!

Woodsywordy

When I bought my new build house in 2008, the builder paid the 20% deposit and I signed a contract to pay it back after 10 years. In 2012 the builder went into administration and I’ve heard nothing since. Is the agreement now void? Should I just stay shtumm? Any advice welcome, thanks.

DE_612183

Have they got a charge on the property registered with Land Registry?

If so you may get an issue if you come to sell the house in the future.

MWT

Woodsywordy said:

When I bought my new build house in 2008, the builder paid the 20% deposit and I signed a contract to pay it back after 10 years. In 2012 the builder went into administration and I’ve heard nothing since. Is the agreement now void? Should I just stay shtumm? Any advice welcome, thanks.

Going into Administration doesn't mean the agreement is void, nor does it necessarily mean they went bust.

You need to check if there is a charge on the property as mentioned above, and you need to check what the outcome was of the Administration (details on Companies House website).

Usually the assets will have ended up with someone else and the agreements to repay will almost certainly be transferable to the new owner. If they chose not to chase the repayment and they do still have a charge on the property then you'll have to deal with it eventually unless you never sell, so just need to figure out when you want to do it...

Woodsywordy

Cheers. Any advice on how I check if there is a charge? Thanks

Woodsywordy

its ok, just found it on NI Direct

Grumpy_chap

Woodsywordy said:

When I bought my new build house in 2008, the builder paid the 20% deposit and I signed a contract to pay it back after 10 years. In 2012 the builder went into administration and I’ve heard nothing since. Is the agreement now void? Should I just stay shtumm? Any advice welcome, thanks.

Is the 20% deposit a fixed sum?
Or is it 20% of the property value?
Or is it the fixed sum but subject to interest?

kingstreet

Typically, this is 20% shared equity secured over the property; so 20% of the current value will be needed to remove the charge on sale/remortgage. Think Help To Buy Equity Loan/HomeBuy Direct and FirstBuy. Schemes all working in a similar way.