Buying a house but developer has gone bust

Discussion in 'Mortgages and buying and selling homes' started by Ravima, 12 Jan 2019 at 9:19 PM.

  1. Ravima

    Ravima Frequent Poster

    Posts:
    2,405
    Colleague is buying a house.

    All is fine with the house.

    Development is not yet taken in charge by local authority.

    Developer is bust.

    Colleague is concerned that bank may not approve loan.

    Has anyone any experience of a similar situation??
     
  2. RedOnion

    RedOnion Frequent Poster

    Posts:
    2,061
    It shouldn't be a problem. Solicitor will qualify title, then bank will consider it. So long as it's not an unfinished estate, it shouldn't be an issue.

    To speed up the process, contact the planning department of council to see what stage it's at, or if anyone even applied for estate to be taken in charge yet. If it's at an advanced stage, a letter to that effect can go to the bank.
     
    Ravima likes this.
  3. Dermot

    Dermot Frequent Poster

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    1,010
    If its an unfinished estate and the Co Co have not taken it over yo need to do a lot of checking including a copy of the planning and if there is anManagement company in place and who is on it etc . Have had a bad experience so be prepared to walk away Bank will probably be asking a lot of questions
     
    mathepac likes this.