Exchanged on New Build - Now prices reduced by 20%

amcluesent

So, bitter medicine but accept your deposit is now lost. Now that's out of the way, look at the risks. No.1 has to be that the developer 'generously' offers to sell at what they know will be the maximum mortgage you can get, allowing for the new LTV position etc. plus what equity you chip in. But that is still higher than the 'going rate'; now you have lost your equity too! The developer then does a deal with a HA and the remaining flats are rented to chavs. Prices fall again and now you're in negative equity, owing more that the house can be sold for.

Walk away, assuming that your loses are limited to the deposit (IMHO of course)

ceestar

No real delays to report at this point - The initial contracts were delayed for a month or so but other than that nothing at all. We are using solictors assigned by the developer as they have provided us with full legal fees.

No wonder they don't seem willing to help.

If the valuation comes in under the original, would you think it's realistic for the developrer to meet, otherwise we simply have now extra funds to complegte the transaction

PasturesNew

Just remembered. Somebody here in the last 7 days suggested investing in a good contract lawyer (I think they said about £150/hour) might be a way to go.

I'll see if I can get that thread.

ceestar

PasturesNew wrote: »

Just remembered. Somebody here in the last 7 days suggested investing in a good contract lawyer (I think they said about £150/hour) might be a way to go.

I'll see if I can get that thread.

Thanks Pastures - Very helpful indeed.

PasturesNew

Sorry, I looked, couldn't find it.

But I do remember that advice being given. A contract lawyer's entire life and job is based around picking through contracts in detail to find a way out of it.

So it might be worth at least pursuing that and trying to locate one or two and get some idea of prices. And googling for such a beast having beaten a developer over a contract maybe...

.... straws, but you've got to clutch something.

The bottom line is this: don't let it get you down. Whatever ends up happening will end up happening whether you stress about it or not.

If the worst comes to the worst (whatever that is) then why stress about it until it's happened. If it all turns out fine, then you've wasted a perfectly good summer stressing about it.

Do what us girls do best: Get a big tub of ice cream and a big spoon and curl up on the sofa with it!

ceestar

Thanks Pastures - That's exactly what I am trying to do! Apart from the ice cream though.

I suppose all will be told once the new valuation comes through.

Thanks again.

PasturesNew

I randomly found this one, must be others out there.

https://www.takelegaladvice.com/find-a-law-firm/

But speak with your conveyancing solicitor first. See if they know anybody, see what they suggest. You've got good lead time on this to thoroughly investigate your options.

Good luck. And please come back to let us know how you're getting on and the final outcome!

PasturesNew

Random odd thought... I've no idea if they work or anything as I've never used them ... but if you have a free legal line as part of your existing house insurance, I wonder if it's worth giving them a call too.

Just thinking all over the place here for you really.

Tiddler_2

When dealing with New Build properties (which is quite often) I always ask when is the property due to complete. Some mortgage lenders do have mortgage offers that last for 12 months (halifax) and if the property is not going to be completed for a long time then that is what I would recommend (assuming you met their T&Cs)

Did you arrange the mortgage via the builders recommended adviser?

ceestar

Yes - The mortgage was agreed with their brokers.