September 1, 2009 at 9:20 am #55183
Hello everyone, Morrisonman here. I need your help please.
In February 2008 I put down a 30% deposit on a new-build off-plan estate in Murcia. Property price at the time was 155,000 Euros. Completion is at the end of September 2009, now just a month away.
I was told by everyone that new-builds would hold their price better than resales. I have been trying to get a mortgage for the balance sorted since July. Not easy!!
Well now that I have a lender on board….just about, I have found out that the same type of properties on the the same complex are being sold for
100,000 Euros. With this drop in “value” my 70% mortgage offer will be far too low and the shortfall I can no way make up.
My solicitor is directly involved in trying to sort something out with the builder……….But has anyone got any ideas on a way forward?
Is the only likely outcome going to be a loss of deposit no matter what I do? Suggestions ❓ please.
September 1, 2009 at 9:41 pm #94045
as they say in Spanish; it’s better to lose a finger than an arm!! get out !! IF you go ahead – be careful of the banks terms – many hidden tricks to bite you after completion !!!!
September 2, 2009 at 8:45 am #94047
Dont pin your hopes on your solicitor doing anything with the builder & also agree with UBEDA postings.
Why would new build hold its price & not a well established one. They both in the same market place ???.
September 2, 2009 at 9:00 am #94048
I have to ask myself. Why on earth did you buy such a place in 2008? Even basic research at that stage would have told you that the market was in for a substantial correction. That was before the credit crunch hit.
Prices in Murcia seem to have fallen quite a lot compared to other parts of the coast. I suspect your property is now worth somewhere between 90-100k.
Bottom line is that the best you can hope for is that you have ONLY lost your deposit. In theory you could be forced to complete which would cost you even more.
September 2, 2009 at 9:06 am #94049
Polaris are pushing for people to complete and threatening legal action to force this!
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