ianbeale Posted August 18, 2008 Share Posted August 18, 2008 check this out http://www.thisisplymouth.co.uk/news/Prope...il/article.html A PLYMOUTH developer has told The Herald he has identified 10 'serial speculators' who he plans to sue for failing to pay up for apartments at the new £25 million Zero 4 building. Mike Hockin, London and Westcountry Estates Limited boss, claimed last month a number of potential buyers were reneging on deals because they have got 'cold feet' as the credit crunch bites. He has now told The Herald he has singled out 10 of those 'serial speculators' who he believes are planning to auction off their flats – thus, he said, breaking their contracts. Quote Link to comment Share on other sites More sharing options...
Nickolarge Posted August 18, 2008 Share Posted August 18, 2008 check this outhttp://www.thisisplymouth.co.uk/news/Prope...il/article.html A PLYMOUTH developer has told The Herald he has identified 10 'serial speculators' who he plans to sue for failing to pay up for apartments at the new £25 million Zero 4 building. Mike Hockin, London and Westcountry Estates Limited boss, claimed last month a number of potential buyers were reneging on deals because they have got 'cold feet' as the credit crunch bites. He has now told The Herald he has singled out 10 of those 'serial speculators' who he believes are planning to auction off their flats – thus, he said, breaking their contracts. I wonder if he has heard the saying 'throwing good money after bad' Quote Link to comment Share on other sites More sharing options...
DoctorJ Posted August 18, 2008 Share Posted August 18, 2008 what is this Hike Mockin guy on. Isn't this why people pay deposits? Quote Link to comment Share on other sites More sharing options...
RufflesTheGuineaPig Posted August 18, 2008 Share Posted August 18, 2008 If they auction them off prior to completion they will be taking business away from the developer. If the develop makes them wait until completion they may get a few extra sales. on the other hand mwaaahahahahahaha Quote Link to comment Share on other sites More sharing options...
DoctorJ Posted August 18, 2008 Share Posted August 18, 2008 Great comment (must be an HPCer): If time was of the essence and the seller has failed then the vendors may avoid the contract, but then both sides must know where they stand already. This and lots of other speculative developments are in deep water for both sides because Plymouth, a very poor town does not have the demand for them. That, added to the property recession leaves purchasers trying to drop the expensive and devaluing hot potatoes and the developers running scared and cutting up rough. Fun to watch, isn't it. Molly, Sutton Quote Link to comment Share on other sites More sharing options...
DoctorJ Posted August 18, 2008 Share Posted August 18, 2008 I would have thought that someone would pay a deposit to reduce the chances of them pulling out of the deal later on - but still maintain the option of pulling out albeit with the loss of the deposit. If they had already signed up to buy - no matter what happened - then why pay a deposit? Looks like this property developer is staring down the barrel and needs to get to his money quick. God I hope they all burn - shame someone will get off lightly Quote Link to comment Share on other sites More sharing options...
Liquid Goldfish Posted August 18, 2008 Share Posted August 18, 2008 I'm confused about who's doing the auctioning It seems to say the purcahsers are - but how can they auction something they don't own? Quote Link to comment Share on other sites More sharing options...
Its time to buy Posted August 19, 2008 Share Posted August 19, 2008 The developers are speculators themselves - ye gods, you look at the speck in your brother's eye, but do not see the mother of all planks in your own eyes. Quote Link to comment Share on other sites More sharing options...
Mikhail Liebenstein Posted August 19, 2008 Share Posted August 19, 2008 The developers are speculators themselves - ye gods, you look at the speck in your brother's eye, but do not see the mother of all planks in your own eyes. I think the developer is worried about the price discovery effect of auction. Firstly if you buy cheaper at auction it would take away from the developer, but secondly what is he to do when he discovers that the flat he is trying to sell for £250k auctioned for £125. Quote Link to comment Share on other sites More sharing options...
Nationalist Posted August 19, 2008 Share Posted August 19, 2008 Ha! There's a block near me where the developer is trying to shift his flats at £250K but there are already a couple up for auction with a guide of £220K. So I don't give much for the developer's chances. (He's already reduced from the £300K he was trying to shift them at back in Jan.) Quote Link to comment Share on other sites More sharing options...
Realistbear Posted August 19, 2008 Share Posted August 19, 2008 I hope the Judge tells the Claimants: "Welcome to the world of business, you jumped into the world of speculative building and in that world competition is to be expected. If a purchaser who has completed or who has a right to buy, sells the property, albeit an otpion to purchase, there is nothing under the fair trading rules to prevent them. Judgment for the Defendnats and costs. Next case....." Quote Link to comment Share on other sites More sharing options...
ianbeale Posted August 19, 2008 Author Share Posted August 19, 2008 development website http://www.zero4plymouth.com/home.html these were advertised "from 159950" now being shown as from "129950" Quote Link to comment Share on other sites More sharing options...
Justice Posted August 19, 2008 Share Posted August 19, 2008 It's the same in Spain where people are walking away from deals having lost 10% deposit but because they live in the UK then the builders will find it hard to take them to court. Builders in the UK on the other hand might be protected by they law as goverment tries to spread the losses to keep everyone working. No work=No taxes Quote Link to comment Share on other sites More sharing options...
ianbeale Posted August 19, 2008 Author Share Posted August 19, 2008 it seems to me that teh following siuation has arisen here btl speculator buys off plan for 160k in aug 07 and has paid a 16k 10% deposit developer cannot shift units at old price so has cut to 130k in aug 08 btl speculator walks away from deal forfiting 16k but getting rid of 30k liabilty - cant blame them really Quote Link to comment Share on other sites More sharing options...
Liquid Goldfish Posted August 19, 2008 Share Posted August 19, 2008 If a purchaser who has completed or who has a right to buy, sells the property, albeit an otpion to purchase....." That makes the most sense to me out of a confusing article. I didn't know you could sell aforementioned option. Quote Link to comment Share on other sites More sharing options...
dellboy Posted August 19, 2008 Share Posted August 19, 2008 The developers are speculators themselves - ye gods, you look at the speck in your brother's eye, but do not see the mother of all planks in your own eyes. Contractually, the developer is not a speculator. Their potential profits are fixed from the outset. The developer only speculates as far as the planning phase. Once the places are sold off-plan, the developer ceases being a speculator. The "potatoes" get passed to the next bunch of losers and the developer merely has to do the building. Once completed, the rest of the money become contractually due. Hence the developer is going to auction the places off and then still come after the speculators for the difference between the auction price and the contract price. LOVELY. Quote Link to comment Share on other sites More sharing options...
ianbeale Posted August 31, 2008 Author Share Posted August 31, 2008 check this outhttp://www.thisisplymouth.co.uk/news/Prope...il/article.html A PLYMOUTH developer has told The Herald he has identified 10 'serial speculators' who he plans to sue for failing to pay up for apartments at the new £25 million Zero 4 building. Mike Hockin, London and Westcountry Estates Limited boss, claimed last month a number of potential buyers were reneging on deals because they have got 'cold feet' as the credit crunch bites. He has now told The Herald he has singled out 10 of those 'serial speculators' who he believes are planning to auction off their flats – thus, he said, breaking their contracts. here they are at auction - zero 4 evelopment auction listing Quote Link to comment Share on other sites More sharing options...
BandWagon Posted August 31, 2008 Share Posted August 31, 2008 (edited) I'm confused about who's doing the auctioningIt seems to say the purcahsers are - but how can they auction something they don't own? The article has been badly written. The developer is going to auction off properties bought by speculators who are not going to complete on their deals. He's going to offload their properties to mitigate the losses to himeself, and then sue them for any difference between the deposit that they've already paid and the amount he can get at auction. That's going to turn very ugly. [edit] Here's the list of properties for auction on the 24th Sept, so you can bag a good deal. Or wait a year and save yourself even more! http://www.fulfords.co.uk/search-results.p...rch&dbtype= Edited August 31, 2008 by BandWagon Quote Link to comment Share on other sites More sharing options...
Liquid Goldfish Posted August 31, 2008 Share Posted August 31, 2008 The article has been badly written. The developer is going to auction off properties bought by speculators who are not going to complete on their deals. He's going to offload their properties to mitigate the losses to himeself, and then sue them for any difference between the deposit that they've already paid and the amount he can get at auction. That's going to turn very ugly. [edit] Here's the list of properties for auction on the 24th Sept, so you can bag a good deal. Or wait a year and save yourself even more! http://www.fulfords.co.uk/search-results.p...rch&dbtype= makes sense now! results will be interesting - guide prices are £90,000+ - purchasers seem to have agreed to pay £160K Quote Link to comment Share on other sites More sharing options...
pobby Posted September 7, 2008 Share Posted September 7, 2008 makes sense now!results will be interesting - guide prices are £90,000+ - purchasers seem to have agreed to pay £160K I know 2 guys who are involved in this. One has a deposit on one house, the other has two. Will keep you up to speed with any developments. Currently they are part of a group who are using the same solicitors to try to get out of this. This development has been 2 to 3 years being built. Franly I see this all ending in tears. Quote Link to comment Share on other sites More sharing options...
Elizabeth Posted September 7, 2008 Share Posted September 7, 2008 check this outhttp://www.thisisplymouth.co.uk/news/Prope...il/article.html A PLYMOUTH developer has told The Herald he has identified 10 'serial speculators' who he plans to sue for failing to pay up for apartments at the new £25 million Zero 4 building. Mike Hockin, London and Westcountry Estates Limited boss, claimed last month a number of potential buyers were reneging on deals because they have got 'cold feet' as the credit crunch bites. He has now told The Herald he has singled out 10 of those 'serial speculators' who he believes are planning to auction off their flats – thus, he said, breaking their contracts. Hang on. I don't get it. Is his beef that they are going to reneg or they are actioning off their interest? If it is because they are breaking the deal then I get it but if they own the rights to a property why should they not action those off? Quote Link to comment Share on other sites More sharing options...
Liquid Goldfish Posted September 7, 2008 Share Posted September 7, 2008 Hang on. I don't get it. Is his beef that they are going to reneg or they are actioning off their interest? If it is because they are breaking the deal then I get it but if they own the rights to a property why should they not action those off? The developer is auctioning them according to a poster above - becasue the buyers won't pay up - on 24/25 September Quote Link to comment Share on other sites More sharing options...
Liquid Goldfish Posted September 26, 2008 Share Posted September 26, 2008 results of auction - these flats are lots 37-46 - all the flats are either "withdarwn" or "still available" http://www.fulfords.co.uk/dynamic.php?id=auctionresults Quote Link to comment Share on other sites More sharing options...
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