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  • FIRST POST
    • Georgedunn
    • By Georgedunn 12th May 18, 2:13 PM
    • 27Posts
    • 5Thanks
    Georgedunn
    Vendor Forced Me To Exchange - Help
    • #1
    • 12th May 18, 2:13 PM
    Vendor Forced Me To Exchange - Help 12th May 18 at 2:13 PM
    Okay so a bit of background to the story before I ask for advice.

    I had agreed to purchase a property from Crest Nicolson in January. I am a first time buyer and a fairy young one too at 21 years old. The house I agreed to buy was £550k which is a large commitment for anyone. I am on a commission based job so my earnings can vary from month to month.

    Having agreed to purchase the house, I put down a £500 reservation fee, under the understanding the estimated completion date was going to be May. I appreciate this can change a little however this seemed reasonable.

    I then went through the whole mortgage and agreement in principle process which I was accepted on and then this progressed to a formal approval. The mortgage advisor did make the point that it was a fairly borderline approval, due to my high outgoings.

    At this point Crest have moved the estimated completion date to July / August, which I was a little concerned about as my mortgage offer expired at the end of August and as I was on a commission based job I didn’t want the pressure of having to re apply. My mortgage has been approved by Santander who take your lowest commission pay in the last 3 months into consideration.

    In April, Crest started putting pressure on me to exchange, I know this is normal for new builds for the builder to put pressure so they can get the deal into their sales figures. I however made it clear I wouldn’t exchange until I had a fixed completion date.

    The following week I was given an ultimatum by Crest and told that unless I exchanged they would refund my reservation fee and re market the property, they told me they still expected to complete July / August and that they worked closely with the mortgage advisor to ensure I wouldn’t have to re apply.

    I then contacted my solicitor to ensure if I wasn’t re accepted my deposit would be safe if I was declined, they advised I was protected as I was using the help to buy.

    I wouldn’t have exchanged however there were few properties left in the new build and this area was highly sought after.

    I then exchanged with Crest.

    Everything went quiet for 2 weeks until I got a phone call saying they had pushed the estimated completion date to the end of October.

    I want to know if there is anything I can do here? I feel like I have been mis sold and forced to exchanged. They would have known full well before I exchanged that it would have been pushed back.

    I am now under immense pressure to keep my earnings up at a certain point, as a first time buyer this has been a horrendous experience and I would recommend to stay away from Crest.

    Please let me know if anyone has been in a similar situation or who I should complain to.
Page 2
    • borkid
    • By borkid 12th May 18, 6:30 PM
    • 1,822 Posts
    • 3,676 Thanks
    borkid
    Housebuilders treat all buyers the same -badly
    Originally posted by lincroft1710
    Actually the house builder we bought from treated us very well. We bought off plan , they didn't start building our house until we exchanged but between completion and our house being built they lent us a house rent free and then paid the removal costs for one move also after completion the payments were staggered so it was only when we moved in did we actually pay the final installment. It was a relatively small house builder though and we were cash buyers.
    • franklee
    • By franklee 12th May 18, 6:40 PM
    • 3,710 Posts
    • 4,001 Thanks
    franklee
    I wouldn!!!8217;t have exchanged however there were few properties left in the new build and this area was highly sought after.
    Originally posted by Georgedunn
    This is the nub you didn't want to risk losing the property.

    Anyway I'm not sure what your question is - you want to complain so that would be to the builder. The issue is what do you want your complaint to achieve?

    Rescind the contract, well they are not obliged to do that but if they can sell easily at a higher price they might especially if you lose your deposit.

    Give you compensation, unlikely but you may be able to blag an upgrade of the taps or something.

    Bring the build forward, I'd assume there is no chance of this.

    What else?

    However there are no guarantees it will be finished in October so I would be concentrating on that. I suggest you cancel your holiday and focus on ensuring you can get the mortgage when you re-apply. If you save like mad to up your deposit then you can borrow less and thus ease the pressure on the earnings the lender requires.

    In addition these would concern me:

    Did you choose your own solicitors or use the builder's recommended one?

    Is there a long stop date in the contract?

    If no to both them maybe time to panic
    • ScorpiondeRooftrouser
    • By ScorpiondeRooftrouser 12th May 18, 6:40 PM
    • 2,644 Posts
    • 4,174 Thanks
    ScorpiondeRooftrouser
    I will agree to disagree with you. The industry i!!!8217;m in (Asset Finance) injected £3.3m into the British economy in March alone.

    With your logic we could get rid of estate agents as they don!!!8217;t any value either, however the market wouldn!!!8217;t function to the same level.
    Originally posted by Georgedunn
    "Injecting 3.3 million" is pushing money across tables. Nothing concrete was created by your work and nothing ever will be. Printing money doesn't create houses, doesn't create food. What actual good was produced?

    Estate agents are being phased out by the internet, so that's a bad example. But yes, we could eliminate all unproductive middle men. The market only has to function at a level that allows people who want to buy houses to buy them from people with houses. Creating demand for houses and spiralling "the housing market" into an economic necessity, rather than a practical exchange, is however a good example of why society is so unequal and !!!!ed up. It values the unproductive over the productive.

    I won't go on though. Maybe when you are bit older than 21 and not so naive as to be railroaded by housebuilders, you might understand this stuff.
    • lincroft1710
    • By lincroft1710 12th May 18, 6:42 PM
    • 10,789 Posts
    • 9,056 Thanks
    lincroft1710
    Actually the house builder we bought from treated us very well. We bought off plan , they didn't start building our house until we exchanged but between completion and our house being built they lent us a house rent free and then paid the removal costs for one move also after completion the payments were staggered so it was only when we moved in did we actually pay the final installment. It was a relatively small house builder though and we were cash buyers.
    Originally posted by borkid
    There's always an exception
    • quantumlobster
    • By quantumlobster 12th May 18, 6:42 PM
    • 144 Posts
    • 316 Thanks
    quantumlobster
    I would suggest that (A) the debate about the value of the OP's profession is taken elsewhere, and (B) the OP saves up a lot to increase their deposit and make the lender's decision much less marginal.
    • anselld
    • By anselld 12th May 18, 6:59 PM
    • 5,811 Posts
    • 5,523 Thanks
    anselld
    Estate agents are being phased out by the internet, so that's a bad example. But yes, we could eliminate all unproductive middle men.
    Originally posted by ScorpiondeRooftrouser
    Ah yes, the Golgafrincham Solution.
    • Georgedunn
    • By Georgedunn 12th May 18, 7:24 PM
    • 27 Posts
    • 5 Thanks
    Georgedunn
    Anyway I'm not sure what your question is - you want to complain so that would be to the builder. The issue is what do you want your complaint to achieve?
    Realistically can I get anything out of them. Stamp duty paid? Curtains / blinds? Wooden floors throughout?

    Is this the angle I should be homing in on.

    Ultimately a complaint is pointless however if I kick and scream enough I might save myself a penny or two.
    • k3lvc
    • By k3lvc 12th May 18, 7:27 PM
    • 2,275 Posts
    • 3,770 Thanks
    k3lvc
    however if I kick and scream enough I might save myself a penny or two.
    Originally posted by Georgedunn
    So you can claim to be worth £150k of someones money for 'trading' but haven't the skill or knowledge to negotiate maturely and confidently with the seller ?
    • Georgedunn
    • By Georgedunn 12th May 18, 7:28 PM
    • 27 Posts
    • 5 Thanks
    Georgedunn
    Injecting 3.3 million" is pushing money across tables. Nothing concrete was created by your work and nothing ever will be. Printing money doesn't create houses, doesn't create food. What actual good was produced?
    I!!!8217;m sure a lot of my customers value what I do. We can syndicate a deal that the customer would not be able to do on their own.

    Ultimately I didn!!!8217;t intend for this to turn into a debate over the usefulness of brokers. The fact of the matter is I do what I do.
    • Georgedunn
    • By Georgedunn 12th May 18, 7:30 PM
    • 27 Posts
    • 5 Thanks
    Georgedunn
    So you can claim to be worth £150k of someones money for 'trading' but haven't the skill or knowledge to negotiate maturely and confidently with the seller ?
    Who says it won!!!8217;t be mature?

    Just an angle I didn!!!8217;t know if it was worth approaching and if anyone had any experience in this.
    • k3lvc
    • By k3lvc 12th May 18, 7:38 PM
    • 2,275 Posts
    • 3,770 Thanks
    k3lvc
    Who says it won't be mature?

    Just an angle I didn't know if it was worth approaching and if anyone had any experience in this.
    Originally posted by Georgedunn
    Kicking and screaming ain't mature - no matter how you try to do it.

    Everyone will have experience of negotiating with a seller - you start at the point that you're entitled to nothing and work from there. Your specific issue is you've already exchanged so have zero power - if you back out you lose your deposit and if demand is high enough they can find another buyer quickly.
    • quantumlobster
    • By quantumlobster 12th May 18, 7:43 PM
    • 144 Posts
    • 316 Thanks
    quantumlobster
    Realistically can I get anything out of them. Stamp duty paid? Curtains / blinds? Wooden floors throughout?

    Is this the angle I should be homing in on.

    Ultimately a complaint is pointless however if I kick and scream enough I might save myself a penny or two.
    Originally posted by Georgedunn
    Here's the sitch:

    The following week I was given an ultimatum by Crest and told that unless I exchanged they would refund my reservation fee and re market the property
    This was your decision point. You could have called their bluff, or walked away. But you chose to exchange.

    Crest clearly laid out their position - exchange or off you trot - and, because reasons at the time, you made a decision and went along with it.

    And now, (I think) because of the precarious nature of your mortgage position, you're understandably uncomfortable.

    Your complain seems to be "my vendor offered me a choice, and now I regret making the choice I did".

    I think they don't owe you (legally or morally) a sausage. Not even a 97% pork free-range organic artisanal Cumberland one.
    • goodwithsaving
    • By goodwithsaving 12th May 18, 9:08 PM
    • 826 Posts
    • 1,271 Thanks
    goodwithsaving
    "Injecting 3.3 million" is pushing money across tables. Nothing concrete was created by your work and nothing ever will be. Printing money doesn't create houses, doesn't create food. What actual good was produced?

    Estate agents are being phased out by the internet, so that's a bad example. But yes, we could eliminate all unproductive middle men. The market only has to function at a level that allows people who want to buy houses to buy them from people with houses. Creating demand for houses and spiralling "the housing market" into an economic necessity, rather than a practical exchange, is however a good example of why society is so unequal and !!!!ed up. It values the unproductive over the productive.

    I won't go on though. Maybe when you are bit older than 21 and not so naive as to be railroaded by housebuilders, you might understand this stuff.
    Originally posted by ScorpiondeRooftrouser
    That's a personal and unnecessary attack against the OP. Some 21 year old's are far more wise and sensible with money than those 20 years their senior. Brokers etc. are not bad people and have their place in the overall workforce.
    The OP has done very well to be able to buy a property - regardless of its value and the dilemma. I suggest we celebrate that rather than be so patronising.

    Let's get back on subject.
    Every time you borrow money, you’re robbing your future self. –Nathan W. Morris
    • steampowered
    • By steampowered 12th May 18, 9:33 PM
    • 2,670 Posts
    • 2,604 Thanks
    steampowered
    Can you re-apply for a mortgage now? Or get your existing offer extended?

    You want to be sure that you will be able to get a mortgage in October. With a different bank potentially.

    Try an independent mortgage broker if you need to.

    If you are not able to complete, you may lose your deposit. You may also be required to pay the difference between the price you agreed to pay and the price the developer sells to someone else for.
    • AdrianC
    • By AdrianC 13th May 18, 8:20 AM
    • 17,784 Posts
    • 16,111 Thanks
    AdrianC
    I am a finance broker. Basic is under £20k but commission in a year in excess of £150k. House was £550k with a 5% deposit, standard 3% stamp duty.
    Originally posted by Georgedunn
    So a £550k property on a 95% mortgage, which means a <£30k deposit.

    £90k take-home per annum.
    Best-buy rate for that size loan is 4.2% currently - £34k/year going straight to the lender. And that's before rates start to rise.

    IIWY, I'd be figuring why your savings are so low that that's the biggest deposit you can fund, and start overpaying that mortgage as heavily as you can while you can. Because any industry that is so heavily commission-based is one that will not hesitate to get shot of you if you cannot keep delivering the numbers.

    Really off topic but on a commission based job you are paid a percentages of sales, so society doesn!!!8217;t justify what you are paid, you do. Supply and demand if everyone could do it you wouldn!!!8217;t get paid the same.
    Originally posted by Georgedunn
    Going back to the headline of the thread, though - with that big a commission element, I'd have thought you'd be au fait with reasonably heavy-pressure closing tactics, yet here you are, complaining and asking about compo because somebody gave you a bit of a close...

    Realistically can I get anything out of them. Stamp duty paid? Curtains / blinds? Wooden floors throughout?

    Is this the angle I should be homing in on.

    Ultimately a complaint is pointless however if I kick and scream enough I might save myself a penny or two.
    Originally posted by Georgedunn
    • Georgedunn
    • By Georgedunn 13th May 18, 9:08 AM
    • 27 Posts
    • 5 Thanks
    Georgedunn
    IIWY, I'd be figuring why your savings are so low that that's the biggest deposit you can fund, and start overpaying that mortgage as heavily as you can while you can. Because any industry that is so heavily commission-based is one that will not hesitate to get shot of you if you cannot keep delivering the numbers.
    I could put a much bigger deposit down, maybe 10/15%, there is a help to buy on it as well so the actual mortgage is 75%.

    I want to keep hold of my capital because I have other projects to invest in such as B2L!!!8217;s.
    • AdrianC
    • By AdrianC 13th May 18, 9:13 AM
    • 17,784 Posts
    • 16,111 Thanks
    AdrianC
    I want to keep hold of my capital because I have other projects to invest in such as B2L!!!8217;s.
    Originally posted by Georgedunn
    Ohgawdhelpusall.


    Ah'm oot.
    • csgohan4
    • By csgohan4 13th May 18, 10:07 AM
    • 4,638 Posts
    • 2,898 Thanks
    csgohan4
    OP you have your priorities in the wrong place, your too young perhaps to understand and if you don't get it from your posts, you need more years under your belt.


    I hope you know what your getting yourself into with help to buy and having such a low deposit, I hope your investments provide more interest than the 95% mortgage interest compared to more
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
    • ciderboy2009
    • By ciderboy2009 13th May 18, 10:39 AM
    • 431 Posts
    • 384 Thanks
    ciderboy2009
    OP - what is the long stop date on your contract? Most good solicitors would have it as when your mortgage offer expires.

    Presumably you're using an independant mortgage broker - what have they said about the delay? Are they able to negotiate with the lender if you do have a bad month?

    If you are really that worried about lost commission whilst you are on holiday then I would suggest that your best option would be to postpone the holiday until you've completed.

    As for getting in to Buy to Let - I would forget about that for now and pay as much off of your mortgage as you possibly can. Look at it this way - are your savings giving you a higher interest rate than you'll be charged on your mortgage?
    • Thrugelmir
    • By Thrugelmir 13th May 18, 10:44 AM
    • 59,226 Posts
    • 52,612 Thanks
    Thrugelmir
    I want to keep hold of my capital because I have other projects to invest in such as B2L!!!8217;s.
    Originally posted by Georgedunn
    Perhaps in reality you actually now regretting committing to buying what is most certainly an overpriced poorly built new property. Which may provide little investment return.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
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