New Build Home - Reservation Fee and potential rogue traders

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Simon1878
Simon1878 Posts: 54 Forumite
edited 27 September 2017 at 3:06PM in Mortgages & endowments
Hi,

I haven't posted for a while but I remember that this place is a reliable place in time of need!

So I've recently found a new build house that I would like to buy as part of the Equity Loan Scheme. I paid my £500 reservation in eagerness. Since I've done that I've got the ball rolling with everything else. Single mortgage application for a place I can afford. All was looking good until I stopped for a moment and found the time to do my research...

The company is a company that's five years old, the guy that sold me the place was a young lad so I assumed salesman, turns out he's the director, this surprised me so I researched further, turns out he's been the director of 14 companies and he's only 23, not too surprising if he's an entrepreneur so I thought, a little further research and his surname reveals a lot, I won't put it on here as I know this site doesn't like names mentioned but I'm sure many on here will have heard of his rogue trader dad back in 2012.... A well known family in Bury.

I'm now quite nervous about the whole thing. What sort of problems may I encounter? My initial thoughts are it's some sort of reservation fee scam where they somehow keep £250 from the reservation fee and you pull out etc.

I don't know whether to go for it and risk it or pull out early and save the heart ache.

BERKSHIRE HOMES (NORTHERN) LIMITED is the company name, anyone heard of them, had any dealings?
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  • kingstreet
    kingstreet Posts: 38,788 Forumite
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    If they are part of HTB the fee is refundable in full.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • Simon1878
    Simon1878 Posts: 54 Forumite
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    kingstreet wrote: »
    If they are part of HTB the fee is refundable in full.

    What do you mean sorry?
  • kingstreet
    kingstreet Posts: 38,788 Forumite
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    If they choose to offer HTB products and have accepted the HCA's terms and conditions; in the event of a problem and you not proceeding they cannot retain any part of the reservation fee you have paid.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • loopieloo83
    loopieloo83 Posts: 9 Forumite
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    Did you sign any paperwork when you put your reservation fee down? I had to sign to say I would only receive £250 back.. otherwise as Kingstreet says you can get it back in full as per the consumer code for homebuilders.
  • Simon1878
    Simon1878 Posts: 54 Forumite
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    How can I be certain they've accepted the HCA terms?

    This sounds promising.

    I'm just a bit fearful of playing with fire, Brendan Kiely and his family have been at the game much longer than me
  • Simon1878
    Simon1878 Posts: 54 Forumite
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    loopieloo83 wrote: »
    Did you sign any paperwork when you put your reservation fee down? I had to sign to say I would only receive £250 back.. otherwise as Kingstreet says you can get it back in full as per the consumer code for homebuilders.

    Yes, I signed and said it £250.

    Did the same thing happen to you?
  • Simon1878
    Simon1878 Posts: 54 Forumite
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    He's pressuring me to send in the help to buy paperwork.
  • loopieloo83
    loopieloo83 Posts: 9 Forumite
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    Simon1878 wrote: »
    Yes, I signed and said it £250.

    Did the same thing happen to you?

    No it didn't happen to me but I looked into whether we could get it back because I was unsure whether we would be accepted for the mortgage... so I just had to accept if it fell through we would only get £250 back!
  • Simon1878
    Simon1878 Posts: 54 Forumite
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    What's the next stage that will cost me money? I don't care about losing 250 it's the fact that if it goes deeper and goes wrong I could lose out on solicitor fees etc

    Right now I've paid the reservation fee, contacted my broker and am waiting for a reply, the developer is desperate for me to file the help to buy stuff but on the second page it requires a solicitor which I don't have yet as I don't want to pay any more fees just yet as I'm anxious something isn't right
  • comeandgo
    comeandgo Posts: 5,750 Forumite
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    That company name, are you sure it's correct? Is it a ltd company as you mention director but a company of that name is on companies house but nothing to do with the person you mentioned.
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