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12/10/2009
Off-plan legal commitments 'to hit property buyers' |
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Fears that many people who entered commitments to buy off-plan properties in the UK before the credit crunch will often be legally held to them, an expert has said.
Editor at Property Investor News Richard Bowser said there have been clear instances of people having problems with being compelled to find mortgage funds at less favourable terms than previously available, citing one example from Leeds.
In this case, he noted, the investors who had entered into a contract believing they could get 90 per cent loan-to-value mortgages with deposits of £13,000 subsequently ended up having to find £50,000.
Mr Bowser noted that off-plan is now "dead" in the UK, but added: "Clearly a lot of people have made commitments and, unfortunately with the time lag, we are still seeing the repercussions of this."
Those facing such a situation may wish to speak to a property lawyer about their options.
Mr Bowser was speaking after a BBC report last week about the issue.
It noted comments from legal experts stating that investors could find themselves unable to escape such contractual commitments.
Written by Anthony Dyson
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