Long Stop Date Reached looking for advice

TwinB1005

Hi I'm just wondering if anyone with more experience than me can advise regarding an off plan property I put a deposit on in November 2022. I have received an email this morning from the solicitor (who they were very pushy about me using and are named in the contract) saying I need to let them know ASAP if I want my deposit back but they will charge £650 plus VAT to arrange it.  I had a template letter ready to send the request myself once the long stop date has passed as I will no longer in contract with then and seems extortionate to me especially when they are acting more in favour of the Developer. Has anyone sent the letter themselves and got the deposit back? And does anyone know the timescales? I believe it's 28 days from the long stop date (30th June) TYIA

user1977

Nobody here is going to be able to help you with the timescales or form of notice without seeing your contract.

Yorkie1

What does the contract say about administrative fees in this eventuality?

user1977

Yorkie1 said:

What does the contract say about administrative fees in this eventuality?

I don't think that's relevant to the contract - the fees are those proposed by the OP's own solicitor for the work involved in formally withdrawing from the contract.

Yorkie1

user1977 said:

Yorkie1 said:

What does the contract say about administrative fees in this eventuality?

I don't think that's relevant to the contract - the fees are those proposed by the OP's own solicitor for the work involved in formally withdrawing from the contract.

Wouldn't you expect the details to have been set out somewhere in the original documentation, though?

user1977

Yorkie1 said:

user1977 said:

Yorkie1 said:

What does the contract say about administrative fees in this eventuality?

I don't think that's relevant to the contract - the fees are those proposed by the OP's own solicitor for the work involved in formally withdrawing from the contract.

Wouldn't you expect the details to have been set out somewhere in the original documentation, though?

Not what the OP's own solicitor's fees would be for withdrawing from the deal at the longstop date, if that's what you mean. That would (almost certainly) be beyond the scope of the original engagement for the purchase.

TwinB1005

Thank you for your replies, the only thing it says about solicitors fees is they pay £1000 towards the fees but that was only if it all went through as planned. I have attached the part of the contract that covers termination it doesn't say anything about notice to complete other than if they have to give me notice to complete so I'm hoping I can just send the letter myself once the long stop date is reached and I am no longer tied in to using their solicitor 

TwinB1005

I posted a couple of weeks ago regarding a property I invested in in November 2022. Long Stop Date is 30th June 2025. The build still hasn't started they are saying it will be this week. Last night I got email from my solicitor saying the Developer has extended the long stop date to June 2026 and feels this is acceptable owing to the delays on the build being down to external factors and constitutng a force majeur (which is not stated in the contract). So I now have to decide whether to pay the solicitor fee amd hope I get my money back which it looks like they are going to refuse based on the fact that they have extended the long stop date, send the letter myself and hope for the best or suck it up and wait another year for it to either be completed or the new long stop date us reached. Alternatively I can pay a fortune on a litigation solicitor. I don't know how these people sleep at night 😡

SarahB16

TwinB1005 said:

I posted a couple of weeks ago regarding a property I invested in in November 2022. Long Stop Date is 30th June 2025. The build still hasn't started they are saying it will be this week. Last night I got email from my solicitor saying the Developer has extended the long stop date to June 2026 and feels this is acceptable owing to the delays on the build being down to external factors and constitutng a force majeur (which is not stated in the contract). So I now have to decide whether to pay the solicitor fee amd hope I get my money back which it looks like they are going to refuse based on the fact that they have extended the long stop date, send the letter myself and hope for the best or suck it up and wait another year for it to either be completed or the new long stop date us reached. Alternatively I can pay a fortune on a litigation solicitor. I don't know how these people sleep at night 😡

@TwinB1005  I had a quick look at your other thread.  You using the words 'invested in' confuses people like me who work in the industry.  

Correct me if I'm wrong but I think you have put down a deposit, signed a contract but the long stop date for being able to walk away from the contract to purchase the property is 30th June 2025.  

I'm still not clear why you were asked to pay £650 to get your deposit back?  I would re-read your original contract to see what it says.  

Some questions I have.  How much is the deposit that you have paid?  Have you checked the planning portal and has planning permission definitely been granted.

Have you been to view other developments the developer is building.  Have they been delayed and that is why the start on site for this one is delayed?  Have you looked at the developer's accounts at Companies House?  How financially strong are they.  

I don't feel I have enough information to advise give you my opinion but my initial thoughts are re-read your contract to purchase the property if there is no mention of paying the £650 request that you want your deposit back without having to pay them the £650 and say you will go to the Ombudsman or name and shame the developer on social media.  I would really love to know the name of this developer however I'm not sure if you're allowed to share it on the open forum.    

user1977

As above easier if you keep to one thread rather than keep on starting new ones.

You didn’t post the whole contract in your last thread, is there anything in it suggesting they can extend the long stop date? If not then they’re just taking the pee and hoping you’re too gullible to contradict them (or the tame solicitors they pointed you at).

TwinB1005

There is nothing in the contract about paying solicitors fees to rescind the contract but they were very pushy with getting me to use the solicitor and whenever I've approached the agent they say speak to the solicitor as you're still in contract and the solicitor is saying if I want them to start proceedings it's £650  plus VAT. I put a £34k deposit down I think the development will go ahead I've already been to see it when the first block was being built. It's just very underhand I downsized and used the equity in my house to do this it was meant to be an investment in my future and my children's by the time it's built ill be really running out of time with regards to a mortgage. I believe their reasons for moving the date are very weak but I am in contact with people who have rescinded contracts with them and they are just ignoring them when they ask for their deposit back