Builders Interest charges

zeroeight7

we got a 92% mortgage approval last year between Sep08-Oct 08. One week before house was complete (end November08) the lender pulled off the offer sitting changes in lending criteria, the lender reduced the rate to 80%, we explained this to the builder who was understanding saying there were a number of us affected by the lenders withdrawal of the 92% offer. 1st week of december 08, the builder sent us a letter saying the house was complete and that we had two weeks to close, I rang them querrying this and they told me this was a standard letter and I shouldnt worry about it, just keep looking for a new morgage approval.

I have since been approved 92%, have signed the offer letter (02.02.09), solicitor has asked for the cheque, there are two outstanding issues i need to sort out before the cheque can be issued.

On friday we received a letter of Notice from the builder stating that we delayed closing the house thus we are being charged €91.97 per day and that we should close within two weeks.

I dont think these charges are fair, I now feel so let down by the builder I no longer want the house. Has anyone been in this kinda situation, I am thinking if I pull out now I'll only loose the diposit, the house was valued last week of Jan 09, there is no change in the Market value and original price. the mortgage has two outstanding conditions to be met before draw down. we feel we are being trapped!!

uncanny

what are the two outstanding conditions to be met?

the builder has money tied up in that house too. a lot more than you, at this point.

if you are delaying him from closing that is your problem, and he is entitled to recover any associated costs from you imo.

zeroeight7

The two Outstanding Items
>Life House Policy
>Agree/disagree with a payment protection insurance

the Life policy is already in place (for previous lender) just need to send original over to present lender.

we thought we'll only loose our 6k deposit

subway

its unlikely you can pull out at this stage -i posted this on another thread

subway wrote: »

http://www.timesonline.co.uk/tol/news/world/ireland/article5213789.ece

Builders take Irish housebuyers to court - Sunday Times

Buyers attempting to pull out of property purchases because of falling values are being taken to court by developers

Mark Tighe

IRISH housebuyers who are trying to pull out of purchases because of falling property values are being taken to court by builders and developers.

Construction companies say they have been forced into legal action to secure sales that were agreed when the properties were valued at up to €100,000 more than they are now.

Senna

As said above its doubtful you can put out, seen you have signed and agreed to buy the house.

On the interest charges per day, i would talk to the builder in person, often its the solicitors that push for this charge and if you explain the situation to the builder he may wave them. I would guess he wont wave them if you say you want to pull out of the deal, that will leave you to pay those charges and you will be forced to complete.

david

Tell him how it is. If you wave a bank draft for the full original price under his nose now that your mortgage got approved I doubt he'll come looking for the interest. Hard cash & closing your a/c is much more important to any builder than chasing late payment charges. They're tight for cash too you know.

zeroeight7

Thanks Guys for that, we were just furious of the charges but deep down we still want the house, I'll try talk to the builder tomorrow and see how goes.

cheers

Senna

zeroeight7 wrote: »

Thanks Guys for that, we were just furious of the charges but deep down we still want the house, I'll try talk to the builder tomorrow and see how goes.

cheers

In fairness, the penaltys were in the contract that you signed, its not something they just made up. Your solicitor should have made you aware of that.

penexpers

david wrote: »

Tell him how it is. If you wave a bank draft for the full original price under his nose now that your mortgage got approved I doubt he'll come looking for the interest. Hard cash & closing your a/c is much more important to any builder than chasing late payment charges. They're tight for cash too you know.

Eh, you are aware that usually when you get a mortgage, the bank releases the funds to your solicitor who then passes them on to the builders solicitor? You and the builder never really see the draft, and most of the transfers are done via EFT these days anyway.

zeroeight7

Senna wrote: »

As said above its doubtful you can put out, seen you have signed and agreed to buy the house.

On the interest charges per day, i would talk to the builder in person, often its the solicitors that push for this charge and if you explain the situation to the builder he may wave them. I would guess he wont wave them if you say you want to pull out of the deal, that will leave you to pay those charges and you will be forced to complete.

I spoke to the builder yesterday, this is what they had to say:
" we are not aware of such a letter, leave it with me I'll call you back in 10 minutes".. two hours later... "from what our solicitor is saying, your solicitor was rang last week for an update to which he said he hasn't heard from you"
I Just couldn't believe it, I was with my Solicitor signing the offer letters that week he was rang!! Finally the builder says I shouldn't pay the interest charges and that I should check with my solicitor who later rang me then sent me my Cash account, which agrees with the remainder of my balance.

what a load of balls

thanks again

subway

zeroeight7 wrote: »

I spoke to the builder yesterday, this is what they had to say:
" we are not aware of such a letter, leave it with me I'll call you back in 10 minutes".. two hours later... "from what our solicitor is saying, your solicitor was rang last week for an update to which he said he hasn't heard from you"
I Just couldn't believe it, I was with my Solicitor signing the offer letters that week he was rang!! Finally the builder says I shouldn't pay the interest charges and that I should check with my solicitor who later rang me then sent me my Cash account, which agrees with the remainder of my balance.

what a load of balls

thanks again

did you check with your solicitor before calling?
any chance he was trying to play a bit of hardball with the developer ?

zeroeight7

subway wrote: »

did you check with your solicitor before calling?
any chance he was trying to play a bit of hardball with the developer ?

No I didnt, but for some reason this guy is hard to get, most of the times he is either with a client or out of office and should call me later when back,as per his secretary. I needed straight answers immediately thats why I spoke to the builder first.

when my the offer letter came, that evening we drove to his offices (missus+kids) only to find the guy had left, after promising to wait for us,he later apologised and gave us a discount on his fees(100).