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The Dangers Of "off Plan" £26K In Legal Fees In Attempt To Recover Deposit

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http://www.thestar.co.uk/news/local/legal-fight-ends-in-defeat-for-sheffield-chef-1-5835589

A top Sheffield chef and his wife who fell victim to the property recession have lost all hope of recovering their £17,295 deposit on a city centre apartment after a devastating ruling at London’s Civil Court of Appeal.

Simon Ayres, who featured on Gordon Ramsay’s Best Restaurant show in 2010 when he was head chef at The Milestone in Kelham Island, said he and wife Nicola have spent around £26,000 on solicitors’ fees in the legal tussle since 2007.

..

The couple tried to buy an apartment on Blonk Street ‘off plan’ in January 2007.

But their mortgage offer fell through while the new-build was still under construction – Simon says after his surveyor was unable to access the site three times to carry out a simple valuation.

The couple then tried to terminate their contract with developers Urban I and retrieve their deposit – but the developers claimed the Ayres were still bound by the contract and were obliged to buy the flat for £172,950.

A very long legal tussle and all for nothing but a large legal bill. Buying off plan is clearly a large risk, not sure I'd want to buy something that hasn't even been built and when potentially the designs might change, although that doesn't appear to have happened in this case.

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http://www.thestar.c...-chef-1-5835589

A very long legal tussle and all for nothing but a large legal bill. Buying off plan is clearly a large risk, not sure I'd want to buy something that hasn't even been built and when potentially the designs might change, although that doesn't appear to have happened in this case.

I would have thought the case would have been against the Surveyor....unable to access the site?...HTF did they build the thing?

Still the buyer was so keen he went to....how many other lenders?

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I would have thought the case would have been against the Surveyor....unable to access the site?...HTF did they build the thing?

Still the buyer was so keen he went to....how many other lenders?

Not fully read into this yet, but most likely that would have been the buyer's own mortgage valuer/surveyor, when they were applying for the mortgage.

Probably after the buyer had signed up to buy and put down their deposit, entering a contract to buy. If the valuer/surveyor came during construction, why would a developer allow someone not authorised to be on site?

Not the off-plan developer's building own construction surveyor.

Offplanners buy thinking they're getting a discount against market valuations, but have all the risks which come with building anything, including long delays due to circumstances outside the control of the developer. From contaminate groundworks, to an archaeological find, buried bodies, drainage issues, or even bad weather as cited as cause of delay in this case. Say hello to Specific Performance.

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I would have thought the case would have been against the Surveyor....unable to access the site?...HTF did they build the thing?

Still the buyer was so keen he went to....how many other lenders?

I'm sure if the value was going up, he would have gone to plenty of other lenders.

Strictly speaking the surveyor isn't relevant, its a rather feeble defence if anything, though was a stronger wicket with the delay in construction.

You enter into a contract to buy, you back out, you pay damages. Simple.

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All mortgages are subject to survey.

If the developer had really blocked access, then the plaintiff could claim the contract void as due to actions by the defendant it was impossible to fulfil.

Unlikely.

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All mortgages are subject to survey.

If the developer had really blocked access, then the plaintiff could claim the contract void as due to actions by the defendant it was impossible to fulfil.

Unlikely.

He'd already contracted to buy, how he was going to fund it was irrelevant.

Bit like bidding at an auction. You should have funds already in place.

Edited by Secure Tenant

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But their mortgage offer fell through while the new-build was still under construction – Simon says after his surveyor was unable to access the site three times to carry out a simple valuation.

Lot of risk with off-plan buying. You don't ordinarily have to hand over a deposit to a seller, sign a contract to buy, on an home that's already built. Then left scrambling for new mortgage offers after existing one fell through, or timed-out.

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He'd already contracted to buy, how he was going to fund it was irrelevant.

Bit like bidding at an auction. You should have funds already in place.

Exactly, imo.

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He'd already contracted to buy, how he was going to fund it was irrelevant.

Bit like bidding at an auction. You should have funds already in place.

it would be unusual for a site to stop a necessary and fair examination of the build at any stage of construction...Indeed, when i bought a newbuild, I was on site regularly to measure up and plan things for the move in...like having a Garden planner round, choosing the colours of walls and having the carpet men round.

The Court in this case felt the same way.

In any case, mortgage or not, blocking the passage of the contract is a nono.

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The fool and his money would have been better served using it early on in getting his legal advisor to explain clearly and slowly what the obligations were once the contract was signed.

Sign in haste repent at leisure.....

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(S3 8BH).

Edited by Venger

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http://www.thestar.co.uk/news/local/legal-fight-ends-in-defeat-for-sheffield-chef-1-5835589

A very long legal tussle and all for nothing but a large legal bill. Buying off plan is clearly a large risk, not sure I'd want to buy something that hasn't even been built and when potentially the designs might change, although that doesn't appear to have happened in this case.

Any contract for 'off plan' should always be subject to satisfactory finance being made available to the buyer. Otherwise, do not sign! I bought them many times in the past when the rediculous merry go round was going on pre-2007. I even sold one before completion, so that there was a back to back completion where I got about £15K for doing nothing!! That is the sort of stupid situation which never be possible and wish had never been possible frankly.

All of it should be tightly managed to stop massive market fluctuations. If you asked me in 2002 how long this nonsense would continue and low rates from 5% and less remain around, I would never have believed they could still be in 2013!! I really thought it was a top by 2005. But no, stupid govts encouraged it even more, along with the B of E who has no clue and now with a clueless Carney on board. We are still at a HP way above the last crash average of 5.5 x average income in the entire southern half of the country.

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Frankly I am disturbed by people buying "off plan"! If you can't see it, it is not there yet! Wait until it is and then look at it! :blink:

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Frankly I am disturbed by people buying "off plan"! If you can't see it, it is not there yet! Wait until it is and then look at it! :blink:

You do get a discount for buying off plan.

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You do get a discount for buying off plan.

Yes, a discount off an inflated price. Until it is on the "market" you don't know what people will pay for it! :blink:

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  • 242 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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      • up 5%



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