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  • FIRST POST
    • Georgedunn
    • By Georgedunn 12th May 18, 2:13 PM
    • 27Posts
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    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 3
    • Lauralou79
    • By Lauralou79 13th May 18, 10:45 AM
    • 191 Posts
    • 174 Thanks
    Lauralou79
    To be less worried about your mortgage affordability when applying again. Increase your deposit size and reduce your outgoings with the capital you have now. I understand you can afford it all but it'll take the pressure off a bit. Ok you want to invest, but you are legally buying this house now. Get this sorted first. You have plenty time to do the investing.

    With your income and the fact you have lodgers in place ready to cover your mortgage, you should be able to quickly build back up your capital.

    As for the buy to let. You should probably research this thoroughly as landlords obligations are more than you think. Do you want the hassle of taking people to court when they won't leave/won't pay?? Having to organise repairs etc? When you are already in high pressure career.

    Plus thanks to financial changes it's not a money making scheme as it may have been years ago.

    I'm not going to patronise your age I know some very screwed on younger people. BUT these forums are full of people who have so much knowledge and life experience. If you listen and take their advice they can help.
    • Georgedunn
    • By Georgedunn 13th May 18, 8:58 PM
    • 27 Posts
    • 4 Thanks
    Georgedunn
    Thank you for all your responses.

    I appreciate I may come across as niave, however this is my first house and need to get it right. Very few 21 year olds are at this stage so probably why I sound niave because no one else my age has been through it.

    I have emailed the manager of Crest, with the below email and will update you on their response as and when:

    Dear Sir,







    I write in reference to the above plot which I have recently exchanged on, 5/04/18.



    I was informed yesterday that my new home will now not be ready until October which has come as huge disappointment to myself as you will appreciate.

    However our main issue is not so much the delay but more importantly it is apparent that you were in full knowledge that this was always going happen. This has been accentuated by your companies tactics in pressurising into exchanging with the only real assurance that the property !!!8220;should!!!8221; be ready for completion in July.



    When I first visited the site in January, I was informed that this property was available and should be ready for completion in May. The reservation fee was duly paid and I proceeded with getting his mortgage approved in principle. Please also consider that this is my first home and as young 21 man, a huge commitment to purchase a £570,000 property.

    Solicitors were instructed and his mortgage was approved with his offer expiring mid-August. At this point I was notified that the property was more likely to be ready in early July.



    Towards the end of March, I was being pressurised to exchange with no firm guaranteed completion and it was simply !!!8220;exchange by the 6th April or will remarket the property!!!8221; My fathers advice to myself at that point was delay as much as possible until your are given a guaranteed completion date also baring in mind your mortgage offer expires in August as a consideration. I exchanged as I really didn!!!8217;t want to lose the property.



    Last week I enquired how was the property progress and he received the attached email still telling him it !!!8220;should!!!8221; be ready for July still and would I like to look round and build progress. In reality no further work has been carried out on it since he exchanged.

    So it has come as a huge shock and disappointment to be told this week, !!!8220;apologies its going to be delayed until October, sorry!!!8221;.



    We are aware of the reason why the house has been delayed, not because it can!!!8217;t be completed on schedule but due to the adjacent properties under construction needing to be completed before I can move in.

    As a company you will have build programs to work to, the build programs will be updated weekly as this will need to reported so you would have fully aware at the point of exchanging that i wouldn!!!8217;t be taking possession in July but you still pushed hard to exchange in that knowledge. Of course this would have been solely to ensure sales targets were met rather than honesty with the customer.



    I would appreciate a prompt response and some thought given how you could make myself happier in this situation.



    Best regards,
    Last edited by Georgedunn; 14-05-2018 at 8:56 AM.
    • hazyjo
    • By hazyjo 13th May 18, 9:02 PM
    • 10,514 Posts
    • 13,679 Thanks
    hazyjo
    Shame you sent it before asking for advice on here. Lots in that you should've left out in my opinion.
    2018 wins: Single Malt Whisky; theatre tickets; festival tickets; year of gin(!); shoes
    • WibblyGirly
    • By WibblyGirly 13th May 18, 9:02 PM
    • 373 Posts
    • 670 Thanks
    WibblyGirly
    Remove your email addresses from the bottom of your post.
    • hazyjo
    • By hazyjo 13th May 18, 9:10 PM
    • 10,514 Posts
    • 13,679 Thanks
    hazyjo
    Remove your email addresses from the bottom of your post.
    Originally posted by WibblyGirly

    And the plot details, your name (having it as a user name ain't a great idea anyway) and any other identifying info.
    2018 wins: Single Malt Whisky; theatre tickets; festival tickets; year of gin(!); shoes
    • Thrugelmir
    • By Thrugelmir 13th May 18, 9:32 PM
    • 58,462 Posts
    • 51,837 Thanks
    Thrugelmir
    Of course this would have been solely to ensure sales targets were met rather than honesty with the customer.
    Originally posted by Georgedunn
    A statement that does little to aid your cause. Just because you work in that type of environment doesn't mean everyone else does.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • steampowered
    • By steampowered 13th May 18, 9:37 PM
    • 2,492 Posts
    • 2,409 Thanks
    steampowered
    The email looks fair enough to me. If you don't ask don't get!

    Though to be fair I doubt it will achieve much.

    You are still in the position of being legally committed to buy this property, but without a commitment from your lender to provide a mortgage.

    The key thing will be to extend your mortgage offer, or get a new mortgage offer from a different lender. You should do this ASAP. An independent broker should know which lenders are most willing to take into account commission when assessing your affordability.

    If you don't get a mortgage offer to cover completion, the unlikely (but not impossible) worst case scenario is that - if you are unable to complete - the housebuilder sells the house to someone else for less. And chases you to make up the difference - making you bankrupt if you don't pay.

    Until that's done, you should consider cutting back spending as much as possible, so that you can provide a bigger deposit if needs must. If you can achieve a 10% deposit you'll be able to get a much cheaper rate on the mortgage.
    Last edited by steampowered; 13-05-2018 at 9:39 PM.
    • Georgedunn
    • By Georgedunn 13th May 18, 9:45 PM
    • 27 Posts
    • 4 Thanks
    Georgedunn
    If you don't get a mortgage offer to cover completion, the unlikely (but not impossible) worst case scenario is that - if you are unable to complete - the housebuilder sells the house to someone else for less. And chases you to make up the difference - making you bankrupt if you don't pay.
    Luckily the help to buy protects you here, if I don!!!8217;t complete because of not having a mortgage in place I won!!!8217;t lose my deposit or be chased for the difference in sale price. I have had this confirmed in writing by my solicitor prior to exchanging.
    • bowlhead99
    • By bowlhead99 13th May 18, 9:51 PM
    • 7,828 Posts
    • 14,299 Thanks
    bowlhead99
    Shame you sent it before asking for advice on here. Lots in that you should've left out in my opinion.
    Originally posted by hazyjo
    Remove your email addresses from the bottom of your post.
    Originally posted by WibblyGirly
    Yes I agree you should have asked for advice on your proposed letter / email before sending it.

    To me it looks like a poorly constructed email, even if it didn't have typos like '...baring in mind...' ; '...as much as possible before your are given...' and '... first home and as young 21 man...'

    It looks like a bodge job that perhaps betrays its origins as something you perhaps had your dad write it for you and it has not been edited cohesively to sound like it's coming from you.

    Some parts are written in the first person: (I have recently exchanged, I was informed, I first visited the site, I was this, I was that) and in other parts you flip it around without explaining who the other person is "I enquired how was the property progress and he received the attached email still telling him", or, " fee was duly paid and I proceeded with getting his mortgage approved in principle"

    Who are all the other people? If 'I' proceeded with getting 'his' mortgage approved, perhaps 'I' is the mortgage broker and 'his' is the poster on this thread. But if 'I' visited the site and then 'I' enquired about the process and 'he' received an email telling 'him'.. then perhaps I means the poster on this thread and he and him refers to a solicitor or broker receiving a status update.

    At other points you are saying "we are aware, our main issue" when you've been telling us you're the sole purchaser.

    It is a mess of sentence construction combined with poor grammar. What it looks like is that your dad wrote it for you in one style and then you decided it should be sent from you and you messed around with it to try to move it from the third person to the first person and screwed it up.

    As the other posters above mentioned, please remove the personal identifying info from the email, including at the bottom not just your email address but your dad who sent you the email for you to forward on. It makes sense to us that as a young man you were asking for advice from your dad, though it doesn't make sense for you to have told the vendor in writing that your father suggested at one point you 'delay as much as possible' to spin it out and try to not exchange yet.

    As an aside, the email address shows your dad to be a property developer and so perhaps that's why you are so keen to get a deal done on a 95% mortgage paid off by lodgers and get yourself into the BTL industry rather than some other path through life.A little colour is useful to help us build up a picture of your situation though we don't need his email address, your email address or the plot number and development name to help us do that.
    • Georgedunn
    • By Georgedunn 13th May 18, 9:56 PM
    • 27 Posts
    • 4 Thanks
    Georgedunn
    To me it looks like a poorly constructed email, even if it didn't have typos like '...baring in mind...' ; '...as much as possible before your are given...' and '... first home and as young 21 man...
    The e-mail was sent by my father, I just tried to (poorly) change it to first person for the purpose of this forum.
    • NewShadow
    • By NewShadow 13th May 18, 10:01 PM
    • 2,839 Posts
    • 12,708 Thanks
    NewShadow
    Luckily the help to buy protects you here, if I don!!!8217;t complete because of not having a mortgage in place I won!!!8217;t lose my deposit or be chased for the difference in sale price. I have had this confirmed in writing by my solicitor prior to exchanging.
    Originally posted by Georgedunn
    I'd honestly appreciate if you wouldn't mind sharing the exact wording from your solicitor - and if they reference any of the regulations.

    I understand how your help to buy element would be protected, but I haven't been able to find anything to say the government would force the developer to return your personal deposit contribution because you have failed to secure a mortgage/extension.

    One of the reasons for a deposit is to give security to the developer in such situations.
    That sounds like a classic case of premature extrapolation.

    House deposit: 26% = £23,000 + £700pm * 16 months = £33,000

    Goal: Keep the bigger picture in mind...
    • Georgedunn
    • By Georgedunn 13th May 18, 10:09 PM
    • 27 Posts
    • 4 Thanks
    Georgedunn
    I!!!8217;d honestly appreciate if you wouldn't mind sharing the exact wording from your solicitor - and if they reference any of the regulations.

    Thank you for your email.



    There are provisions within the Contract which state that the Contract is conditional upon the buyers original mortgage offer remaining valid (or obtaining a replacement mortgage offer) prior to completion.



    If you do not have a valid offer in readiness for Legal Completion, either you or the seller may terminate the Contract by serving notice in writing.



    At this point, you will be entitled to the return of your deposit.



    Please note, your mortgage offer is valid until 21st August 2018 and reservation form advising that build completion is estimated to be July/August 2018.
    • Asl77c
    • By Asl77c 13th May 18, 10:21 PM
    • 69 Posts
    • 49 Thanks
    Asl77c
    The one thing i would say is i don't see why it should be remotely relevant to them that you are a young person committing to a large purchase. That issue is yours to deal with and should have no influence on how they deal with you vs any other person in the same situation. You decided to make this commitment and you are that age, why do you feel that is something that they need to consider? I certainly don't think it is relevant if you are 21, 31, 41, etc.
    • bowlhead99
    • By bowlhead99 13th May 18, 10:27 PM
    • 7,828 Posts
    • 14,299 Thanks
    bowlhead99
    The e-mail was sent by my father, I just tried to (poorly) change it to first person for the purpose of this forum.
    Originally posted by Georgedunn
    Fair enough. And don't take my post as a super harsh critique of the action you've taken - it just looks unprofessional and there are some things that with hindsight could/should have been omitted or included. And IMHO if *you* are the buyer, your letter will get less respect if it's from some relative saying 'please be nice to my son and give him some sort of incentive or apology'.

    As you mentioned earlier you're probably on a hiding to nothing knowing that you chose to exchange because you ddn't want to risk losing out, and now you risk losing out due to your not being able to get a mortgage. None of that is a concern for the vendor, who can find another buyer. No point him giving you a free carpet or something.

    There's no real incentive for the vendor to give you any incentives or sweeteners as you've already committed to pay him £x for the property as long as you can get a mortgage, and you do want the property and your dad's letter isn't even threatening that you'll deliberately fail to get the mortgage and thereby dodge completion at the last moment. Still, as someone else said: don't ask, don't get. But don't hold out hope either.
    • dibblersan
    • By dibblersan 13th May 18, 10:45 PM
    • 214 Posts
    • 929 Thanks
    dibblersan
    also wondering if your father will get into trouble if he's trying to intimidate a developer sending the email from his work address. I know that would be against the IT policy anywhere I've worked. If nothing else it looks a little sad his son is apparently old enough to buy a house but not to send an email without daddy's help...
    • Georgedunn
    • By Georgedunn 13th May 18, 10:53 PM
    • 27 Posts
    • 4 Thanks
    Georgedunn
    also wondering if your father will get into trouble if he's trying to intimidate a developer sending the email from his work address. I know that would be against the IT policy anywhere I've worked. If nothing else it looks a little sad his son is apparently old enough to buy a house but not to send an email without daddy's help...
    It his own business, so I don!!!8217;t think he will get in trouble with anyone.

    Is it sad? Or is it just a father looking to help out in an industry he knows a lot better than his son who is a first time buyer...

    Again I!!!8217;m 21, this is the first time I!!!8217;ve done this, cut me a little slack. I!!!8217;ve come here to ask for advice of which a lot of people are giving, but the other half seem to be finding reasons to belittle me.
    • dibblersan
    • By dibblersan 13th May 18, 11:07 PM
    • 214 Posts
    • 929 Thanks
    dibblersan
    It his own business, so I don!!!8217;t think he will get in trouble with anyone.

    Is it sad? Or is it just a father looking to help out in an industry he knows a lot better than his son who is a first time buyer...

    Again I!!!8217;m 21, this is the first time I!!!8217;ve done this, cut me a little slack. I!!!8217;ve come here to ask for advice of which a lot of people are giving, but the other half seem to be finding reasons to belittle me.
    Originally posted by Georgedunn
    Helping is advising. Doing for is not helping. It's almost the exact opposite. Either you're ready to make a large financial commitment or your father is using your first time buyer status to take advantage of a government scheme he's not eligible for. eitherway sad.
    • Georgedunn
    • By Georgedunn 13th May 18, 11:18 PM
    • 27 Posts
    • 4 Thanks
    Georgedunn
    Either you're ready to make a large financial commitment or your father is using your first time buyer status to take advantage of a government scheme he's not eligible for. eitherway sad.
    How on earth is it sad if I!!!8217;m ready to make a large financial commitment?

    If you haven!!!8217;t got anything productive to add to the discussion I would appreciate if you didn!!!8217;t comment as its wasting everyone else!!!8217;s time - sad.
    • csgohan4
    • By csgohan4 13th May 18, 11:58 PM
    • 4,426 Posts
    • 2,776 Thanks
    csgohan4
    The developer is under no obligation to respond nor bow to your demands, what are you going to do?


    Your hand is very weak and you have nothing to bargain, your problems are not the sellers are they?


    Put yourself in their shoes, it's business nothing personal, you've clearly let your emotions taken this purchase over




    Your a high earner and you depending on Help to buy is in itself evident of your poor grasp of finances. You do know you will likely be paying back more than you get from the HTB scheme.


    not to mention new builds are over priced and will drop in value once you have the keys
    Last edited by csgohan4; 14-05-2018 at 12:01 AM.
    "It is prudent when shopping for something important, not to limit yourself to Pound land"
    • DaftyDuck
    • By DaftyDuck 14th May 18, 8:10 AM
    • 4,155 Posts
    • 8,658 Thanks
    DaftyDuck
    Everybody, stop "forcing" the OP to post! It's embarrassing...
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