suprabeast

Hi guys,

Have got a question that I'm hoping someone maybe able to answer.

Agreed to buy a new build house in Scotland last year which is due for completion in October 08.

We paid a deposit of £1000 and missives passed backwords and forwards by the solicitor and then signed by us.

Problem now is that, in the massive change of mortgage situations in the last few months, the deposit amount that we need has now extended beyond what we can afford and subsequently we cannot get a mortgage to buy this property.

I'm not exactly sure what the situation is in scotland but can I pull out of buying this place??

Anyone have experience of this??

Thanks

boxst

Have a read here: http://www.findaproperty.com/display...&storyid=20563

The bottom bit about suing is a bit scary.

Steve

Devildog

If missives have been concluded then you are contractually obliged to buy.

If you don't, the seller can ultimately sue you for any costs or losses incurred arising from your failure to do so.

What builder/area?

And do you have a Scottish solicitor?

suprabeast

Its West coast of scotland. with George Wimpey.

If we pull out then we risk getting sued but if I can't get the money to pay for the place then I have no choice.

As it works out everything has changed soo much since we agreed to buy that its just not so feasible anymore.

I havent got as far as contacting solicitors but thats a job for tomo. Just pulling my hair out at the mo over it.

Mitchy260

When i moved into my house i was warned my missive fees if the mortgage was not in place in time would have been £50pd.

Over a month thats obviously a £1500/£1550 fine.

Luckily my mortgage was sorted the day before we finalised. Scary moment though.

As to your question, you are legally obliged now and if you pull out be prepared for a harsh financial penalty, like has been said you are open to being sued. Every day you go pass the date, you will be charged a daily fee.

Factor this in along with the £1000 deposit, court fees etc etc....Is there no way at all you being able to carry on with the house purchase? If not then it's going to cost you a lot in fees and fines.

Sorry, you dont have a leg to stand on, you signed the missives afterall

suprabeast

ok so lets say this is the case and we have no mortgage, how long will these daily fees go on? In theory are we saying i could owe them £18250 by next year?? or does it stop somewhere?

bearing in mind I dont have money, can I be sued for money that I dont have??

Devildog

Its not "fees" (fines) per se. its interest on the unpaid debt.

Timescale will be dependent upon the terms of the missives themselves but will generally run until the property is resold and the seller has been paid.

At which point, you will be open to be sued for any loss incurred by the seller.

If you have no money, you can still be sued, you just can't pay.

suprabeast

hmmm this will be an interesting couple of months then

fast bloke

You sure you can't get a mortgage? LTV's restrictions and deals have eased substantially over the past week or two. You won't get 100%, but 90 or 95 is becoming more realistic again. A month ago you would struggle to get 75%

Alan-G

Cheltenham and Gloucester do 95%

john banks

Ask your lawyer, or post up the part in your missives which describes penalties.

fast bloke

Bank of Ireland, BM Solutions, Halifax, Royal Bank of Scotland are other options. The deals might not be dead cheap, but you might have to take the pain if you are going to have to pay the builder anyway

suprabeast

well 95% is doable but as you say, when i looked last month it wasn't possible for that amount. its just when the figure gets to 85% its suddenly a more substantial amount of cash..

I'll get onto C&G and the other and see what we can come up with!

I'll also sling up the missive cancellations bit when i get home

al4x1

who do you bank with? may be worth checking them as sometimes you get more leeway as they can actually see your account details and what goes through it. Some will even have you pre-approved up to a certain level based on your account. You can also sometimes rig this by bunging more cash through your account

The problem at the moment is I'd imagine house builders are having to enforce these hard due to defaults and not finding new buyers