Exchanged on New Build - Now prices reduced by 20%

ceestar

I was told that Halifax re-value after six months as well despite having longer validity periods of 12 months rather than the standard six

tomstickland

So, bitter medicine but accept your deposit is now lost.

How large was the deposit?
I'd seriously consider losing that and watching what happens to the market in the next year.

ceestar

PasturesNew wrote: »

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!

Sure will do.

Many Thanks

benood

If you walk away you'll probably be subjected to some scary correspondence. But there's a reasonable chance that's where it would end - how gutsy do you feel - probably worth spending on the contract lawyer for extra piece of mind - if nothing else a letter from a specialist will show the developer you won't be a push over. I'd get a move on to see if you can have it sorted and agreed before completion is due.

ceestar

benood wrote: »

If you walk away you'll probably be subjected to some scary correspondence. But there's a reasonable chance that's where it would end - how gutsy do you feel - probably worth spending on the contract lawyer for extra piece of mind - if nothing else a letter from a specialist will show the developer you won't be a push over. I'd get a move on to see if you can have it sorted and agreed before completion is due.

I don't think guts really comes into for me - I don't really have a choice if the valuation is reduced. Simple!

BTW - The deposit was £26K

Helga14

I really feel for you. I think that you may find that the developer may drop the price if it comes to you being forced to pull out if the valuation is lower. In the end they want a quick sale and may lose more money if you don't complete and they then have to sell for a lower price anyway.

The legal people should be acting on your behalf, shouldn't they but I guess they maybe conflicted if they are paid by the developer. I would put your questions to them in writing by letter.

benood

ceestar wrote: »

I don't think guts really comes into for me - I don't really have a choice if the valuation is reduced. Simple!

BTW - The deposit was £26K

Ouch, in that case I'd immediately reopen negotiations and compain to my solicitor as they should have forseen this eventuality IMO.

ceestar

They have been a complete waste of time. I hope that they do, as we don't really want to lose the deposit or the property. One piece of advice I do have - If you purchase a new build, never use their recommended solicitors even if they pay for it! I think they would rather see us get screwed, then lose business with the developer!

ceestar

I spoke to my solictor recently - They have advised that they have been in touch with the developers lawyers regarding some kind of reduction. We are awaiting awaiting further feedback.

silvercar

This is going to be the next public outcry. Solicitors, valuers and mortgage brokers all in cahoots with the builders. Inflated valuations signed off by professionals, screwing the public with over inflated prices.

Whether or not the solicitor came from the builders, they are acting for you. They should not have put you in the position of exchanging on a contract with a mortgage offer expiring before the building was likely to be completed.

I would start shouting loudly at the solicitor. Hopefully he will go back to "his mate" the builder and sort out a reduced price that "his mate" the surveyor can value the property at.