HELP please! Bought off-plan in Glasgow, VERY delayed, what can I do?

Captain_Mainwaring_2 · 4 June 2008 at 9:36AM

Jonbvn wrote: »

Usually, the contract T&C's have some words regarding completion within a reasonable time. TBH 3.5 years is far beyond reasonable, and deserves to be challenged in the courts. Unfortunately, this would probably cost you too much money in legal costs to consider.

I doubt it - the OP has left it 1.5 years past the due date without pursuing it. Would the OP be worried if the property market was still going mad? again I doubt it. The market is falling to bits and the OP wants out (and I don't blame them) any legal action would need to try and show that a falling market wasn't the cause of the action and that the delay was.

Has the OP sent any letters to the builder complaining and threatening action?

daverave7 · 4 June 2008 at 6:42PM

I'm in a very similar situation to this and still not sure what to do. I purchased an off plan flat for 200 K (20 K deposit) over 2 years ago, when their 'estimated' completion date was June 2007. It says in my contract that all estimated completion dates supplied by the developer are not legally binding. After continuous delays the flats are still not built. I am now informed they will be ready for completion this August.

My current mortgage offer and valuation just about makes it possible for me to complete, but this offer runs out at end of August. In the last few months the asking prices for these flats have dropped by at least 20%. If I DO NOT get to complete by August I will need to get a new mortgage offer and a new valuation. If the valuation comes back less that what it was before (which I reckon it will due to market conditions) I simply can't afford to complete. This means I am liable to lose a 20 K deposit plus any loss in the developer reselling the flat plus legal costs. I estimate this to be anywhere from 60 to 100K depending on how much they resell the flat for.

This is my first time in buying a property and it's turning into a disaster which could cripple me financially for years to come.

Lakey · 4 June 2008 at 6:56PM

I wondered how you were doing. Have you managed to find out anymore from a legal beagle. I really hope you can sort something out very soon.

daverave7 · 4 June 2008 at 7:07PM

Lakey wrote: »

I wondered how you were doing. Have you managed to find out anymore from a legal beagle. I really hope you can sort something out very soon.

Our solicitor, whom has acted for us since our deposit was paid in March 2006, said we don't know exactly what we are liable for until we go down the route of pulling out. They said at worst, we'd lose the deposit plus difference in resale price plus legal costs plus interest. Doesn't really help! Did try to approach another solicitor for advice, but they wouldn't give us an opinion as we have already got an acting solicitor.

Could be a case of sacking my solicitor! I'm prepared to go through with the purchase but might not have this option if there are more delays. Tough times ahead!

Lakey · 4 June 2008 at 7:23PM

:search: Keep us posted and be a bit choosy on which threads you read here, I'm getting depressed reading some of them. If I believed what some people are writing, I'd be better off exchanging my house for a tent at millets.
You say its lost 20% in value, how have you calculated that?

daverave7 · 4 June 2008 at 7:41PM

Lakey wrote: »

:search: Keep us posted and be a bit choosy on which threads you read here, I'm getting depressed reading some of them. If I believed what some people are writing, I'd be better off exchanging my house for a tent at millets.
You say its lost 20% in value, how have you calculated that?

A same build flat in same location is now on the market for 160K and not selling. So at least 20%!

bluejake · 4 June 2008 at 7:54PM

These hard luck cases are examples of people who believed the property !!!!!! tv shows and, I am afraid to say this moneysaving board where people who were warning that property prices can and will fall were shunted off into a single thread and shouted down and censored.

Just incredible that people would pay a 20k non refundable deposit on a property that doesn't even have to be built by a set date. The developer can delay if he has financial problems but the buyer is screwed. Such a crap shoot but people were suffering house price inflation bubble delusion and thought they couldn't lose - even after years of house price inflation. It is a shame.

The posters should be getting some answers from their solicitors in my view. You still seem very vague.

SquatNow · 4 June 2008 at 8:07PM

daverave7 wrote: »

They said at worst, we'd lose the deposit plus difference in resale price plus legal costs plus interest.

Sadly that could be £100k+

Consider: No buyers, place goes to auction in 6 months time...

Lakey wrote: »

If I believed what some people are writing, I'd be better off exchanging my house for a tent at millets.

Give it 6 months.

daverave7 · 4 June 2008 at 9:21PM

bluejake wrote: »

These hard luck cases are examples of people who believed the property !!!!!! tv shows and, I am afraid to say this moneysaving board where people who were warning that property prices can and will fall were shunted off into a single thread and shouted down and censored.

Just incredible that people would pay a 20k non refundable deposit on a property that doesn't even have to be built by a set date. The developer can delay if he has financial problems but the buyer is screwed. Such a crap shoot but people were suffering house price inflation bubble delusion and thought they couldn't lose - even after years of house price inflation. It is a shame.

The posters should be getting some answers from their solicitors in my view. You still seem very vague.

Wouldn't say I was sold by the "property !!!!!! tv shows" or "suffering house price inflation bubble delusion" but just wanted to buy my own property in that particular location.

I admit it's been a mistake and it's gonna cost me. How much I don't know - that's why I'm here and looking for a solution. I don't expect to get off totally free but I'm looking to minimise my losses - This is a money saving forum after all... surely not a forum for people to gloat that they were right in their market predictions they made a few years ago. housepricecrash.co.uk is made for the latter.