Contract Issues

markmcie

So received a letter from my builders solicitors today saying I should prepare to complete the purchase of a property in the next 14 days. I bought off the plans over a year ago and have snagged the place.

My big problem now is, I am between contracts so mortgage provider is not happy to give me the money they approved a long time ago. Also, my partner is no more and with the interest rates they way they are I'm worried about repayments.

I have asked my solicitor is there any way to forfeit the contract without leaving myself opened to being sued. I'm quite worried about this and would be happy to forget about the booking deposit and the property but its not so straight forward. I put a booking deposit down last November and signed contracts not long after.

Has anybody any similar experiences like this. I'm at the point were I cant afford the new property and really need to get out of it.

Any tips much appreciated.

Jo King

There may be ways out of it. With the way the market has gone you probably cannot sell your interest in the contract to a new purchaser. Your solicitor will need to hire counsel to investigate the possibilities of getting out of the contract. One case I know of, recently, turned on the builders non-compliance with planning permission. The purchaser got out of the contract.

The_Conductor

In a rising market builders were only too happy to cancel contracts- as they would inevitably have no problems offloading the properties at a higher price on other customers. Unfortunately in the current market situation- builders need money urgently- so its highly unlikely that they will allow you to simply forfeit the booking deposit. As Jo King suggested- planning irregularities, or some other legal mechanism for breaking the contract may be your best course of action. If its a watertight contract though- they could pursue you for the difference in the cost of the non-sale + difference in resale value when it is eventually offloaded- which could be very significant in the current market. You need to get a competent solicitor who specialises in property and conveyancing on the case ASAP.

jdivision

I would explain your situation to them and ask for a discount - might be in their interest to do so

Boggle

Depends on your builder. Some builders will run by the book and others will be very understanding. Contact a solicitor first to find out exactly how binding the conract is and then explain the situation.
If there is a good reason then they may let you off (have seen this with a builder we are doing work for) but other won't budge so you will need you solicitor...

BC

If you can prove that you can no longer get a mortgage you may be okay. I have heard of situations where this has happened and the builder has let people out of the contract - there is no point in sueing as the person clearly cannot afford to pay.

You need to talk to your solicitor though.