Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • yellowpollycat
    • By yellowpollycat 10th May 18, 8:39 AM
    • 10Posts
    • 0Thanks
    yellowpollycat
    New Build delay - walk away advice please!
    • #1
    • 10th May 18, 8:39 AM
    New Build delay - walk away advice please! 10th May 18 at 8:39 AM
    Hi, we agreed to buy a new build with Harron Homes in May 2017 with an estimated completion date on November 2017. They took our house in part exchange and we exchanged contracts in July 2017.

    Since then the build has been delayed - first to March 2018 (which we agreed to), then June 2018 (which we complained about but stuck with it) but yesterday we were told it would be September 2018 at the earliest. This means we have to reapply for another mortgage. The contract does not have a long stop date either.

    There is no reason for this except the builder keeps rescheduling - the foundations were laid in November 2017.

    We've now had enough and don't trust that it will be September either - no work has been carried out on the house for weeks.

    I understand that we can walk away as this delay of 10 months would be considered unreasonable. Has anyone ever done this? If so, is it complicated, how long did it take and were the conveyancing fees refunded?

    Could we also ask for compensation and loss of value on our property? It was put on the market below market value for a quick sale and has now been sold twice - the first buyers bought in June and waited until December and withdrew, the current buyers bought in January 2018, and their mortgage offer runs out in July.

    Any advice would be welcome - we are viewing a couple of houses at the weekend with a view to starting again.

    TIA
Page 1
    • davidmcn
    • By davidmcn 10th May 18, 8:56 AM
    • 9,076 Posts
    • 9,671 Thanks
    davidmcn
    • #2
    • 10th May 18, 8:56 AM
    • #2
    • 10th May 18, 8:56 AM
    The contract does not have a long stop date.

    I understand that we can walk away as this delay of 10 months would be considered unreasonable.
    Originally posted by yellowpollycat
    From where did you get this understanding? If you wanted a right to walk away you should have negotiated a long stop date.
    • Aylesbury Duck
    • By Aylesbury Duck 10th May 18, 9:00 AM
    • 2,402 Posts
    • 3,185 Thanks
    Aylesbury Duck
    • #3
    • 10th May 18, 9:00 AM
    • #3
    • 10th May 18, 9:00 AM
    What do the terms of your agreement with them say? If they don't mention anything about being able to walk away in the event of serious delays, you should take some proper legal advice on your options.

    Compensation for the loss of value of your own property will be a non-starter. Property prices are relatively arbitrary, you will find it almost impossible to prove a loss of value because what person x is prepared to pay for it compared to person y is not solely a function of market value. You admit yourself that you put it on the market at less than the supposed market value, so you could say that you have willingly de-valued it already. If you are able to claim anything, it will only be for your quantifiable losses.
    • AnotherJoe
    • By AnotherJoe 10th May 18, 9:00 AM
    • 11,519 Posts
    • 13,336 Thanks
    AnotherJoe
    • #4
    • 10th May 18, 9:00 AM
    • #4
    • 10th May 18, 9:00 AM
    What a mess. I would start with legal advice, because the fact you've apparently sold your house complicates this to the nth degree. Perhaps your builder is in financial trouble.

    ps have you gone to the builder and told them you plan to start legal proceedings to rewind this whole deal? Whilst you may not have a leg to stand on, they may decide its quicker to finish your place than be involved in legal proceedings. Also, does your house insurance include legal cover?
    Last edited by AnotherJoe; 10-05-2018 at 9:05 AM.
    • LandyAndy
    • By LandyAndy 10th May 18, 9:14 AM
    • 24,531 Posts
    • 51,766 Thanks
    LandyAndy
    • #5
    • 10th May 18, 9:14 AM
    • #5
    • 10th May 18, 9:14 AM
    , they may decide its quicker to finish your place than be involved in legal proceedings. ?
    Originally posted by AnotherJoe
    And then you could be left with your house in the middle of a building site sine die.

    I think I would be exploring the possibility of unwinding the whole thing but you might face a penalty.
    • crystalpinks
    • By crystalpinks 10th May 18, 2:24 PM
    • 49 Posts
    • 20 Thanks
    crystalpinks
    • #6
    • 10th May 18, 2:24 PM
    • #6
    • 10th May 18, 2:24 PM
    How far are they into building now? This may give some idea on how soon the house COULD be completed by, but obviously no garantee if they!!!8217;ve already pushed it back so far!
    Surely they should explain the reason for the delay- that!!!8217;s a VERY long time to build a house, could they be in financial difficulty?
    • ciderboy2009
    • By ciderboy2009 10th May 18, 2:51 PM
    • 475 Posts
    • 415 Thanks
    ciderboy2009
    • #7
    • 10th May 18, 2:51 PM
    • #7
    • 10th May 18, 2:51 PM
    I'm really surprised that your solicitor allowed you to exchange contracts without a long stop date - particularly as a mortgage is required.

    I would start by asking them what you should do now.
    • yellowpollycat
    • By yellowpollycat 11th May 18, 7:57 PM
    • 10 Posts
    • 0 Thanks
    yellowpollycat
    • #8
    • 11th May 18, 7:57 PM
    • #8
    • 11th May 18, 7:57 PM
    Hi all, many thanks for your replies. Our solicitor says we can rescind on 24 May, 6 months after the original estimated completion date as it is deemed as unreasonable. However, we will only get our reservation fee back - although we can ask for the conveyancing fees to be reimbursed there is no guarantee they will do this.

    He is writing to ask for a supplementary long stop date of September with compensation if not met given the delays so far and lack of communication - but again, they may not agree.

    If we go down this route, does anyone have any idea when we will be legally free to put our property back on the market? All my research says you can rescind but I can't find out how long the process takes as no one seems to have done so :-(

    I'm hoping it is simple - but given it is a legal issue the cynic in me kicks in ...

    tia
    • yellowpollycat
    • By yellowpollycat 11th May 18, 8:05 PM
    • 10 Posts
    • 0 Thanks
    yellowpollycat
    • #9
    • 11th May 18, 8:05 PM
    • #9
    • 11th May 18, 8:05 PM
    How far are they into building now? This may give some idea on how soon the house COULD be completed by, but obviously no garantee if they!!!8217;ve already pushed it back so far!
    Surely they should explain the reason for the delay- that!!!8217;s a VERY long time to build a house, could they be in financial difficulty?
    Originally posted by crystalpinks

    I know - the foundations were laid in November 2017, so we thought June was a slam dunk! It is only now at second lift, so no roof etc. We think that this row of 3 houses were started and then replanned to finish at the same time as the block, ie the additional 5 houses at the back. Their foundations were in February and they are also at second lift. It is !!!! though ...
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,546Posts Today

8,705Users online

Martin's Twitter