Anyone bought in the Lanson building, Chelsea Bridge Wharf and struggling to complete ?

I am in a similar situation on a flat at cranfield mill at ipswich.

If i pull out after exchange of contact (the contract is heavily balanced in the sellers favour) i will lose my deposit and be liable to being sued for consequential loss by the developer.

What i need to weigh up is how far the developer wants to get involved in a legal action with me and a lot of other poeple in the same situation on this site - the small men who actually want to complete but cant get the funds. It is a mind game from here on in.

Many of these developers will not be able to sell the property to anyone else at anything like the same value today. Do they have the stomach to take small people to court and sue them and can they afford the battle (they are all in trouble financially themselves with lenders). many of them will just want to complete at the most they can get which is why they will me extremly thereatening initially.

I have just emailed bbc panorama with my situation to see if i can raise some public awareness of what seems to be a little publicesed situation that many thousands of people are in. I suggest that anypone else in this situation visits the panorama site and does the same. This debate needs some publicity and developers need to be made to wake up and smell the coffee.

I posted my thoughts on this problem in the first page of this thread some considerable time ago, I reiterate and still stand by my belief that....

In my opinion prospective purchasers can expect to and will lose their deposits, I think that's a foregone conclusion in most cases (contract dependant). But I can only believe that a liablity for further damages that the developers have incurred would not be deemed reasonable due to the current and unique market conditions.

This massive drop in property prices and the current recession could not have been reasonably expected or foreseen, due to the sudden & uncontrollable market conditions.. by any individual or organisation when the deposits were placed. Reasons alone which have caused the reduction in the developers expected profits... this loss will be very hard if impossible to illustrate and prove, that the loss has resulted entirely from the intended purchasers inability to proceed..

The above situation alone has removed any affected individuals ability or control over having any choice of following the sale proceedings through to the end, this inability simply could not reasonably have been envisaged by anyone when the deposits were made in good faith by anyone who had the sincere intention to fully honour the contract had they ordinarily been capable of or allowed to carry out their initial intention.

Just my tuppence worth. !.

Never buy off plan and never buy a brand new car!

And remember this, the developer also didn't see this property collapse coming. It's very easy to blame the developer at this stage, but the developer almost certainly will have taken loans to finance the development, and those costs are still there and very real. I used to be a property developer, trust me it's not all champagne and Ferraris. Do you imagine for a second, that the lenders to the developers will take on board the fall in property prices, and give the developers a deal? I think not. All these things are subject to contract.

Many people buy off-plan in anticipation of rising prices, I remember those buyers complaining and bleating back in the late 80's. Nothing changes, especially greed.

Obviously the people here are unlikely to be speculators, but I just wanted to give a view from the developers perspective as well. There are no winners in this, until property starts to climb again. The developers are subject to contract, just like the purchasers.

That's my shillings worth!

Skywalker - One major concern I have is how can anyone be allowed to sign a legally binding contract that ties them into being committed to purchase anything especially...so far in advance, when adequate funds are not fully and legally in place beforehand to cover all the anticipated costs....even if it meant some form of compulsory indemnity policy being taken out by the prospective purchaser.

This compares with bidding to buy a house at a propery auction, only for the buyer to gamble on whether they can borrow the funds after they have legally entered a contract to proceed to carry out the full purchase. It simply should not be allowed for the safety and protection of all parties involved.

CMK,

I understand your point about adequate funds not being fully and legally in place. However if that was seriously applied, it would be the end of 25 year mortgages, because it is a legally binding contract in which both parties understand that the purchaser certainly does not have the full purchase price. The only difference with off-plan is that the period between exchange of contracts and completion can be very extended. However the principle remains the same.

And I reiterate what I said before - the developer will also have borrowings subject to contract. What is in place from a legal perspective in this case I believe, is regulated enough. The buyer must beware in any and all situations. The developer also operates under similar fiscal constraints.

In the developers position, they are borrowing money to build and sell a dream lifestyle, which comes at a premium. Buyers who want a piece of that are no more guaranteed that prices will go up, than somebody buying their council property at a huge discount.

The principle of long term borrowing is vitally important to any economy, and these types of loans must be protected by contract to ensure fairness between both parties. What that money is then used for is going to be based on a certain risk.

If there had been no (cyclical) downturn in values, this thread would not even exist.

Has anyone bought flat at canary wharf with young group? Please let me be know.

I bought a flat with them at Ability Place.

Hi Polly1 and others,

I bought a flat at Canary Wharf and the mortgage was nearly 100000 less than the purchase price. So obviously, I do not have the money to pay hence I told my solicitor that I could not complete. I have lost my deposit and I have been told that they will try to recover their lose.

We are having a tough time now and not sure what the developer is going to do. Can you let me know your progress? Can someone share your experiences?

Thanks,

ability place

Hi, I am delighted to hear that you are fighting back. Just thought I would update you on my situation. I posted back in April, but cannot get a link to my previous post. In summary, I too bought of plan last year (Scotland, Ardrossan Harbour) was due to complete Dec 08, knew I could not as I was unable to secure a mortgage (due to change in lending criteria and unable to sell a property). The builder Taylor Winpy have now issed me with a INITIAL WRIT for the sum of £10,380. I had already paid them 1K, which I knew I would loose. They claim that they had to sell the property for 10K less than I had reserved it at.

I am now having difficulty finding a solicitor who will handle my case, they state that as I signed the missives I am liable. This will eventually result in me going bankrupt as I do not have the money to pay them.

Does anyone know of a solicitor in my area who would handle this?

Polly

£10000 isnt very much in the grand scheme of things. What was the purchase price? What was their sale price? And how long after your failed completion did they request the £10000.

If they do try to sue then they would also claim daily interest, their marketing costs as well as all the legal costs they would have incurred. Sounds to me like they are just bluffing and trying to scare you into paying. If they pursue you through the courts it would cost them more than 10k to pursue you so its not really worth their while.

Phyllis,

I am in the exact same situation as you. Served with legal papers for specific performance by DLA Piper solicitors. This only happened to me at the start of the week, have been discussing with my solicitor but they seem to have no opinion what so ever, feel like thay are not helping at all. My solicitor is Colemans - i believe Mc Hales and Colemans were my 2 choices when purchasing the apratment - given to me through the Dandara.

What advice have you been given, or has your situation changed since you posted this thread?

i would be willing to discuss this further if you wish?

kenners,

I am also in the same situation as you and phyllis.

is there any way we can get intouch?

many thanks

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Hi I have tried leaving you my email so that we can talk but it contravenes the rules for this site. Our advice is that if you have been served for specific performance you must act very very fast - I presume you have been sent court papers from manchester court - If you intend putting in a defence you only have 14 days from the date of you being served to respond to both the court and DLA Piper that you intend putting in a defence - then you have another 14 days to present your defense correctly eg within 28 days of you originally being served. Everything you do now has to be done correctly. Our understanding from our litigation solicitor when we were served was that if you dont put in a defence then specific prerormance will be automatically granted against you. We have an excellent litigation solicitor and we are defending our case with ther help. We would be willing to discuss this more fully but we dont know how to contact you or the other person who is also in our position. If you know how to chat or email as a group we would be pleased to know - this is very important for all of us - as a group we can be more united. We already have contact with others in our same position.

kind regards Phyllis

Hi ability place,

While I know that the law differs in Scotland, I have been advised that the missives I signed WILL stand up in court. I have been advised that my only defence is to dispute the amount that TAYLOR WIMPY claim to have lost. I do not know if this is the right advise, but I have had a solicitor prepare that defence.

Of course if I loose the amount I owe them will increase as I will be liable for their costs also, but I am between a rock and a hard place as I do not have the money to pay, so I leave myself with the situation whereby they will have to make me Bankrupt.

I would love to hear from any one else in a similar situation (Scotland) that has experienced this. It is a terrible situation we are in. I have read many posts from people staying we deserve what we get, to these people I would advise that I am not a Big property developer and have been caught up in the state of the market and a change in lending criteria. My conclusion to this is that I will be left financialy ruined by this. The people who have been unable to get a mortgage to complete a purchase are the ones who will pay. The builders have got their money, therefore have suffered no loss.

I was to complete on a property in Cardiff in March and failed to get a mortgage. The cost of the property was 134,500 I paid 13,500. The selling company are not the developers they just bought the entire building and kept some apartments for them selevs and sold on the rest. Their solicitor have outlined on a letter sent to me today that the company have sold my apartment for 104,500 and the are giving me 5 days to pay the difference of 16,500.

I spoke to a friend of mine they said fair enough they can keep the deposit but they purchased the property from the developer far less than 134,500 and that I should not be expected to pay for loss on their profits. Can anyone let me know what they think of this?

I think myself that they bought this property themselves because just after I failed to complete I saw several apartments for sale or rightmove I enquired immediately under a different name and I got no response so I think they didn't sell to the public but back to themselves at a reduced price.