Author Topic: Bellway loan with Stewart Milne financial problems  (Read 7752 times)

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teeny

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Bellway loan with Stewart Milne financial problems
« on: February 11, 2016, 10:54:06 am »
A close friend of mine has bought a new build home from Bellway and were supposed get keys/entry next week.
Now they have been told that Bellway have a loan agreement with another house builder, Stewart Milne, for the land the property has been built on. They have been told they will not be allowed to enter the property until the loan has been repaid by Bellway which is supposed to be the end of the month.
It sounds as though Bellway have financial troubles.
Just wondering if anyone has heard of anything similar and as a warning to others to ask the question.
I am shocked that this could occur at all let alone at such a late stage.


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Re: Bellway loan with Stewart Milne financial problems
« Reply #1 on: February 11, 2016, 12:38:38 pm »
This sounds utter nonsense.
I cannot believe little Stewart Milne is lending plc housebuilder Bellway money.
Even if they are it should impact on the purchase of this house.
I can only think that Bellway doesn't own the land yet but..........can you imagine any house builder building a house on land it doesn't own?

Just when I think I have heard everything house builders get up to - I get surprised!
There may well be stage payments to buy pockets of land off another house builder or a consortium of house builders, but it would be madness to build on land they don't yet own.

Get your friend to ask the solicitor to find out who currently owns the land.
Whatever you they do they must not legally complete on the property without owning the whole property (buildings and land) getting the keys.
My hope is that your friend hasn't used the house builder's choice of solicitor as they will soon discover why this is such a bad idea.

I can assure you Bellway's shares are doing very well. Any hint of financial problems would need to be decalred to the City.
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teeny

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Re: Bellway loan with Stewart Milne financial problems
« Reply #2 on: February 11, 2016, 01:34:01 pm »
Thanks for the response, it's all extremely strange.
The news came from their own solicitor who they have used for decades, unfortunately I don't know exactly how he came to know. The development itself is Earls Green in Troon. The Bellway development always seemed a little odd.
Originally it was just a Stewart Milne development and then Bellway seemed to appear out of nowhere with plots in the middle of the rest.

All I can say for sure is the exchange was due to take place next week and is now off on the promise that this 'loan' will be repaid by Bellway at the end of the month. As you say it sounds like they don't own the land.

Bellway have asked for the money for the house at the agreed date. Of course my friend has been advised not to and will not be doing so until they are guaranteed keys etc.
I also saw all the good news regarding the financial performance of Bellway, however something seems to be up.

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Re: Bellway loan with Stewart Milne financial problems
« Reply #3 on: February 12, 2016, 06:19:51 am »
Indeed; keep us informed.

I suspect Bellway has bought a few plots off Stewart Milne who may be the ones with cash flow issues.
Perhaps it is done on stage payments with full payment for the land due once the home is 100% completed?
New Home Blog - New Home Expert is committed to providing help and advice for people having issues with their new homes and difficulties with house builders as well as helping potential buyers reduce the risk of possible problems if they do buy.