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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 4
    • AdrianC
    • By AdrianC 14th May 18, 8:45 AM
    • 18,388 Posts
    • 16,606 Thanks
    AdrianC
    The e-mail was sent by my father
    Originally posted by Georgedunn
    The developer would be breaking the law by entering into any kind of correspondence with your father on your contract with them.
    • Georgedunn
    • By Georgedunn 14th May 18, 9:03 AM
    • 27 Posts
    • 5 Thanks
    Georgedunn

    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.
    Originally posted by csgohan4
    Certainly not dependent on the help to buy at all, was always my intention to cut outgoings once mortgage was approved. Using the help to buy is just allowing me to get further up the ladder. By having 2 lodgers who are in effect paying my mortgage it will allow me to pay off the £110k loan from Help To Buy in 2/3 years.
    • dunroving
    • By dunroving 14th May 18, 9:07 AM
    • 1,304 Posts
    • 904 Thanks
    dunroving
    Certainly not dependent on the help to buy at all, was always my intention to cut outgoings once mortgage was approved. Using the help to buy is just allowing me to get further up the ladder. By having 2 lodgers who are in effect paying my mortgage it will allow me to pay off the £110k loan from Help To Buy in 2/3 years.
    Originally posted by Georgedunn
    So each of your lodgers is paying upwards of £2k per month for a bedroom?
    (Nearly) dunroving
    • csgohan4
    • By csgohan4 14th May 18, 9:18 AM
    • 4,889 Posts
    • 3,123 Thanks
    csgohan4
    So each of your lodgers is paying upwards of £2k per month for a bedroom?
    Originally posted by dunroving


    For that kind of money I could rent a nice apartment in a nice part of London al to myself, no thanks OP
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
    • Georgedunn
    • By Georgedunn 14th May 18, 9:25 AM
    • 27 Posts
    • 5 Thanks
    Georgedunn
    So each of your lodgers is paying upwards of £2k per month for a bedroom?
    Originally posted by dunroving
    No, £1,200 a month mortgage ( Santander at 1.49%), each lodger is paying £600 a month which is the going rate for a room in Milton Keynes. Bills are then split 3 ways, so in effect I am paying 1/3 of bills to live in this property.
    • dunroving
    • By dunroving 14th May 18, 9:31 AM
    • 1,304 Posts
    • 904 Thanks
    dunroving
    No, £1,200 a month mortgage ( Santander at 1.49%), each lodger is paying £600 a month which is the going rate for a room in Milton Keynes. Bills are then split 3 ways, so in effect I am paying 1/3 of bills to live in this property.
    Originally posted by Georgedunn
    My A-level maths is deserting me.

    How will each of them paying £600 per month pay off a £110k loan in 2-3 years? Even an interest-free loan would take monthly payments of £3,056 to pay off in 3 years . I can't see any way you are netting that amount. Never mind the fact that at the start of the loan there is £1,639 per year in interest to pay.
    (Nearly) dunroving
    • Georgedunn
    • By Georgedunn 14th May 18, 9:39 AM
    • 27 Posts
    • 5 Thanks
    Georgedunn
    My A-level maths is deserting me.

    How will each of them paying £600 per month pay off a £110k loan in 2-3 years? Even an interest-free loan would take monthly payments of £3,056 to pay off in 3 years . I can't see any way you are netting that amount. Never mind the fact that at the start of the loan there is £1,639 per year in interest to pay.
    Originally posted by dunroving
    Apologies, didn't explain it correctly. They will in effect be paying my £1,200 a month mortgage, I will then be able to save more to pay off this £110k Help To Buy.
    • hazyjo
    • By hazyjo 14th May 18, 10:03 AM
    • 10,885 Posts
    • 14,340 Thanks
    hazyjo
    You know the rent a room scheme rental income is only up to £7,500pa (not each) then you're paying tax?
    2018 wins: Single Malt Whisky; theatre tickets; festival tickets; year of gin(!); shoes
    • Asl77c
    • By Asl77c 14th May 18, 10:30 AM
    • 84 Posts
    • 65 Thanks
    Asl77c
    You do realise that you have posted on a public forum, with your full name and job, and now are essentially saying you are going to take part in tax evasion by your mates paying cash? That!!!8217;s the impression I get from this. Not the best idea.........
    • dunroving
    • By dunroving 14th May 18, 10:37 AM
    • 1,304 Posts
    • 904 Thanks
    dunroving
    You know the rent a room scheme rental income is only up to £7,500pa (not each) then you're paying tax?
    Originally posted by hazyjo
    Or should be ... OP seems to have other ideas about his mate's cash payments. I can see this thread taking a whole different turn.

    People in glass houses and all that.
    (Nearly) dunroving
    • davidmcn
    • By davidmcn 14th May 18, 10:47 AM
    • 8,528 Posts
    • 8,988 Thanks
    davidmcn
    Oh dear. I guess paying tax is for the little people...
    • AdrianC
    • By AdrianC 14th May 18, 11:39 AM
    • 18,388 Posts
    • 16,606 Thanks
    AdrianC
    £550k FTB... in MK?

    This just gets sillier.
    • Asl77c
    • By Asl77c 14th May 18, 11:48 AM
    • 84 Posts
    • 65 Thanks
    Asl77c
    Deleting the comment about paying cash doesn!!!8217;t make the fact go away about it being tax evasion
    • Georgedunn
    • By Georgedunn 14th May 18, 11:52 AM
    • 27 Posts
    • 5 Thanks
    Georgedunn
    £550k FTB... in MK?

    This just gets sillier.
    Originally posted by AdrianC
    What's silly about this?
    • LilElvis
    • By LilElvis 14th May 18, 12:00 PM
    • 3,823 Posts
    • 10,360 Thanks
    LilElvis
    £550k FTB... in MK?

    This just gets sillier.
    Originally posted by AdrianC
    Quite a lot of houses in MK are £550 and above. This house neighbours mine http://www.rightmove.co.uk/property-for-sale/property-53695404.html
    • Aylesbury Duck
    • By Aylesbury Duck 14th May 18, 12:00 PM
    • 2,315 Posts
    • 3,137 Thanks
    Aylesbury Duck
    Going back to the original numbers, what's the problem?

    You earn around £170k p.a. and are worried about paying off a mortgage on a £550k house? What on earth are you spending the money on at the moment?
    Please forgive the deliberate omission of apostrophes on some posts whilst I await MSE to do something about the daft codes that appear in their place when typing on certain devices.
    • Georgedunn
    • By Georgedunn 14th May 18, 12:15 PM
    • 27 Posts
    • 5 Thanks
    Georgedunn
    Going back to the original numbers, what's the problem?

    You earn around £170k p.a. and are worried about paying off a mortgage on a £550k house? What on earth are you spending the money on at the moment?
    Originally posted by Aylesbury Duck
    I have 2 cars with a combined HP payment of £2k a month and £7k pa on insurance.

    I will get rid of one when I move in, but this expenditure is high at the moment.
    • A Nice Englishman
    • By A Nice Englishman 14th May 18, 12:17 PM
    • 2,117 Posts
    • 1,184 Thanks
    A Nice Englishman
    You do realise that you have posted on a public forum, with your full name and job, and now are essentially saying you are going to take part in tax evasion by your mates paying cash? That!!!8217;s the impression I get from this. Not the best idea.........
    Originally posted by Asl77c
    The address of the property he's buying too.....
    • letitbe90
    • By letitbe90 14th May 18, 12:19 PM
    • 89 Posts
    • 95 Thanks
    letitbe90
    Going back to the original numbers, what's the problem?

    You earn around £170k p.a. and are worried about paying off a mortgage on a £550k house? What on earth are you spending the money on at the moment?
    Originally posted by Aylesbury Duck
    From my experience, as my salary grew, so did my expenditure, be it unneccesary expenditure..

    5 years ago if you asked me what I'd do with a 6 figure salary (when i was earning circa £20k) - i'd tell you I wouldn't know how to spend that money. Nowadays, now that I am on £540 a day, it never feels enough.
    • Aylesbury Duck
    • By Aylesbury Duck 14th May 18, 12:20 PM
    • 2,315 Posts
    • 3,137 Thanks
    Aylesbury Duck
    I have 2 cars with a combined HP payment of £2k a month and £7k pa on insurance.

    I will get rid of one when I move in, but this expenditure is high at the moment.
    Why not get rid of one now? You can only drive one at a time.

    In your shoes with the upcoming commitment you've made, I'd be eliminating all unnecessary expenditure now and saving like mad so I could overpay the mortgage from the start. £1300 saved per month by ditching one car - think what that will save in compounded interest over a 25 year mortgage.
    Please forgive the deliberate omission of apostrophes on some posts whilst I await MSE to do something about the daft codes that appear in their place when typing on certain devices.
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