What Happens Next?

[cassmrc]

I am in contract with a Builder to buy a house which is almost completed.
However, recently he advertised locally and nationally some remaining houses in the Development at a reduced price to what I paid.

My problem is : My final Evaluation is to be completed this week and I'm afraid that the Valuer will value it at less than the original evaluation therefore rendering my Mortgage application for 295K Null.

If the mortgage company withdraw mortgage based on New Valuation , where to I stand in withdrawing my contract for the Property.

Any advise is appreciated, its such a stressful time.

 

[Towger]

To put it simply, the options are as follows.

A. Get extra money from elsewhere.

B. You don't go ahead. Lose your deposit and possibly be sued for the difference by the builder. There are a number of cases in the courts at the moment.

C. The builder will have to sell you the property at a lower price.

D. Get a good lawer to try and find a loop hole in the contract.

E. Buy the house off the builder’s bank at a reduced price.

Option C is the most preferred by both parties.

 

[FKH]

There are a few threads on this topic so search around for them (then to have pull out of contract) in the title.

If you can get Option C go with it as it is the best option for you. Legally you are probably tied in to buying at original price but Builder may negotiate if you can show new mortgage offer is based on lower valuation.