purchased an off plan property in the uk 2006.: unable to complete property purchase

E

eason

Guest
I purchased an off plan property in the uk 2006. I was told at the time that I would get 80% Ltv. Now I am only able to get 60% LTV and also the value has come down so I have to come up with a bigger deposit.
I am unable to proceed with the purchase. Completion is in Feb. 09. The company I purchased from are not the developers. They purchased from the developer. They are putting extreme pressure on me to find the extra money. I just can't I have tried everything.

I sought legal advice from two solicitors. The solicitor I contacted first is the one acting on my behalf in the UK for the purchase of the apartment. He advised me that the sales company told him that they would be taking action. The solicitor said they might, he could not say for definite as they will always threaten first.

The second solicitor I contacted is my own solicitor here at home. (Ireland) . He said if you can't complete what can you do. He advised me to send a letter to them forfeiting the deposit and that if they tried to peruse me for anymore money that he would take legal action on my behalf against them for misrepresentation. In 2006 I sent the sales company an email to verify everything loan value, rental, and deposit which I needed they confirmed all was correct.
The property was to be completed in Sep 08 at this time I was able to come up with a 70%LTV and the value was much higher.
He advised me that if the pressure was put on the sales company they would back off as the cost of coming after a person in Ireland would be costly if things didn't work out.

Any advice would be appreciated.


Thanks.


 
Re: unable to complete property purchase

I don't see a question in your post.

You have had two lots of legal advice, what else do you need?
 
Re: unable to complete property purchase

Hi mathepac.

Sorry i did not include my question. Has anyone else had a similar expierence with uk property?.

Does anyone know of any uk sales companies that took Irish people to court.
 
Re: unable to complete property purchase

You might note the contract documents wilkl advise you that all disputes and actions are deemed to be based on Uk law not Irish law.
 
Re: unable to complete property purchase

I know the contract is Uk law. If the company is to take action they will have to apply to the Irish courts. Will this make it more difficult for them?
 
Re: unable to complete property purchase

Of course it will be more difficult for them to pursue you in another jurisdiction but they will probably only pursue you if it is worth doing same. This would mean you have assets or permanent employment. What misrepresentation are you referring to in your post?
 
Re: unable to complete property purchase

The misrepresentation is before I signed the contract I sent the company a detailed email outlining the LTV, what rental should be achieved and the value on completion with in reason. They confirmed all was correct. I would have to come up with a balance of 12k, now this is 39K.

They are offering me a 24K loan over 3 years which I don't know if I can pay back. They told me not to tell the lender, but I did because I was afraid of any legal implications. The lender turned me down because of the loan.
 
Re: unable to complete property purchase

Was the completion date written into the contract. If it was there are in breach of contract by not finishing on time .
It looks like you would be taking a fairly substantial loss by completing
My advice would be to either walk away or negotiate a whole new contract with this company . The chances of them incurring the costs of taking you on here are slim.
I think both they and you should be realistic to the situation.
The property party is over and both of you are aware of this
 
Re: purchased an off plan property in the uk 2006.: unable to complete property purch

There was no completion date on the contract we were only told that the property would be completed in Sep 08 now it will Feb 09. Yes if I had the money it would be a big loss to complete. I do have other properties in Ireland but I can't release equity on them because borrowings are to high and looks like values are coming down, the loans are getting closer to the values and they would be next to impossible to sell at the moment as there is nothing selling in the area. I will just have to wait and see what will happen.
 
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