Author Topic: New Build Company buying my house back  (Read 622 times)

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abbeylands

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New Build Company buying my house back
« on: September 13, 2018, 05:51:22 pm »
In a nutshell I puchased a new-build from a major developer some 14 moths ago.
I informed them of a few small snagging issues in June which then transpired to be an awful lot worse!!
Three weeks ago I was told I would have to move out of the property initially into hotel/bed and breakfast for a couple of nights then into rented for between 6 months to 1 year.

Finally in the past week they have said that the porblems are too extensive for a quick fix and that they will buy the property off me. I am assuming this means that I will not be at a financial loss and that any purchase should/would allow me to purchase a similar propery in a similar position and not lose financially. i.e. it would cover the expenses to buy another propery legal fees, stamp duty, surveys etc) or at least refund me the money spent initially on the same services when buying 14 months ago.

Has anyone had experience of the process and what level of "compensation" I should expect from a major UK developer.


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Re: New Build Company buying my house back
« Reply #1 on: September 14, 2018, 06:13:31 am »
Name the housebuilder and I will reply with advice.
Others need to know who the housebuilder is and what is wrong with your house.
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abbeylands

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Re: New Build Company buying my house back
« Reply #2 on: September 14, 2018, 09:17:08 am »
The house builder is Barratt.

They are still trying to establish what has happened and why.
Fundamentally the house is slipping off the foundations which in turn appear to have cracked. The gas pipe running into the house is now snagging against the brickwork - thus turned off. The electicity box has been disabled as the movement has put pressure on the incoming connections and brickwork all around the house is cracked.

The concrete screed on the hallway floor as split and you can insert a steel ruler some 11 inches into the floor with no resistance. The garden wall has moved as well - picture attached.

The sunpod in the kitchen has gapped away from the wall and again a rule can be pushed through upto around 11 inches. The external render has now split from the bottom to the top which again suggests significant movement. They are apparently going to make an offer to buy the plot - what I need to know is what to expect and is it their responsibility to ensure that I can at least buy a similar property without losing money. i.e. a 4 bedroom detached new house with garage in a good sized plot.

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Re: New Build Company buying my house back
« Reply #3 on: September 14, 2018, 09:52:20 am »
This sounds really serious. I expect Barratt Homes are intending to demolish the house and re built using piled foundations. I also anticipate that your house wont be the only property affected either!

I have little knowledge of buy-backs other than I know for a fact that sometimes plc housebuilders do buy back houses they have built with serious structural defects. As indeed do the NHBC.  However, buyers are probably required to sign a non-disclosure agreement (aka "gagging order") as part of the buy-back deal so others never know about the details.

1) Get a fair market price for your house.
I would suggest you arrange for THREE local agents to value your house soon. Pretend you are putting it on the market and they will do this for free. Also check the prices of similar houses in the local area as well as sold prices on your development.

2) Expenses
Barratt must reimburse you the full cost of legal fees for both the buy-back and for your legal fees buying your new home. They should also pay your stamp duty for the new home, at least up to the value of the buy back house. Do not forget to include any mortgage valuation, early redemption, arrangement fees too. Also all removal costs should be met by Barratt.
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abbeylands

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Re: New Build Company buying my house back
« Reply #4 on: September 16, 2018, 06:48:28 pm »
Here is a solution that would help our family.
Just not sure if the builder (Barratt Homes) would accept.
The house that is being bought back has a market value of around £360,000.
This is estimated from the selling prices of equivalent new homes within our catchement area. This does not include the additional cost of flooring, carpets, lino, window blinds etc and the fitting out of the garage into a workshop.

I don't really want to buy a new build again - too disappointed from this experience and I purchased this house with a help to buy loan as well. Again another potential headache as I am still trying to find out if the HTB loan repayement will be based upon the actual value of the property as it now stands, the value at which I purchased it or the value it would have if it was in perfect condition - which it obviously isn't!

I have seen a lovely house on the market for £340,000. Can I say to Barratts buy this house for me - pay all fees etc and then swap it for the new build which I assume will have to be knocked down anyway. They can then pay legal fees, stamp duty etc. I will essentialluy take the house for my existing mortgage and deposit (but without the HTB loan.) In essence I will pay £269,000 for the house - Barratt will pay all the diference and settle the HTB scheme. That way I have the house I want, Barratt can have their house back and all is clean and tidy. Thoughts?
Just saves them buying their house back - paying me and then me billing them for all the costs of buying another property.

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Re: New Build Company buying my house back
« Reply #5 on: September 17, 2018, 06:42:17 am »
First of all the amount of the Help to Buy loan you will repay will be the proportion of the equity given up of the selling price either higher or lower than what you originally paid.

You should also factor in the cost of carpets and curtains, I forgot that with the cost of moving home.

You will need to sell your house to Barratt and by the house. What you are proposing is complicated and I doubt Barratt would agree.

A 'thank you' would have been appreciated!
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abbeylands

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Re: New Build Company buying my house back
« Reply #6 on: September 17, 2018, 07:49:53 pm »
Apologies - thanks are due but still argueing with Barratts over a myriad of issues. For some reason they made an offer to buy back based on a 3 bed semi. Called us greedy when we explained that was a little underpriced given we didn't live in a 4 bedroomed house. Soon corrected them and now they have arranged for an independent surveyor to come and value. The difference I expect will be in the region of £40,000. However the upside is they have agreed to pay rental costs, legal and moving/storage costs and ensure we are not out of pocket. So inching foreward to a solution. Will let you know what is eventually settled and how to get there.


Teddybear581

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Re: New Build Company buying my house back
« Reply #7 on: October 23, 2018, 10:49:32 am »
Sorry that you have had so many problems and hope your next house purchase is a happy one.  :) I have asked Barratt to buy back my house......my defects are nowhere near as severe as yours.

My complaint is more that they did not disclose material facts about the plot, that had I known, would have resulted in me walking away from the development. Barratt have told me that they will not agree a buy back. Oh well onwards and upward....will just sell myself and move on x