HBPG/ Mortgage Issues

Blackpoolfan


Joined: 03/12/2008
Posts: 1568

Message Posted:
15/12/2008 14:20

I have bought at Olive Grove in Lapta through Santa-Fe Constuction. After reading the minutes of the HBPG meeting and the issues surrounding mortgaging/ re-mortgaging of land i e-mailed the director who replied to say they had a £100,000 mortgage on the land but had 5 un-sold units totalling some £300,000 so in their opinion i had nothing to worry about. I would have thought that when they sell the remaining units they would pay off the mortgage and if they dont sell the bank would auction the properties to re-coup their money. I had hoped that having your sales contract registered by your advocate would also help protect the buyer. If anybody can offer any relevant factual advise it would be greatly appreciated.

the butler


Joined: 22/06/2007
Posts: 1958

Message Posted:
15/12/2008 14:44

Hi Blackpoolfan,



I am sure the mortgage must have been taken out before the registration rule came into being. Our developer took out mortgage in November 2007 and ruling applied from February 2008. If he did manage to take out mortgage after this ruling and you had registered your property, then this is very serious indeed. The rule came in to protect buyers from this happening.



The Butler

Blackpoolfan


Joined: 03/12/2008
Posts: 1568

Message Posted:
15/12/2008 14:57

Butler,

Prior to the new law thankfully, but even with the new registration laws are they watertight? i am not so sure. Have a nice day.

Molly


Joined: 30/08/2008
Posts: 299

Message Posted:
15/12/2008 15:34

You will not be able to get your title deed until the mortgage has been lifted.

the butler


Joined: 22/06/2007
Posts: 1958

Message Posted:
15/12/2008 15:55

Hi blackpoolfan,



I read on another thread, of someone in the same position as you. When one of the unsold villas looked like it was about to be sold, the rest of the owners got the new owner to pay the money into the builders bank and effectivly paid off the mortgage. After this happened there was no way the builder could take out another mortage as the other owners had registered their properties.

Maybe you could get your neighbours to keep their eyes and ears open for a possible sale.



The Butler

spook


Joined: 23/01/2008
Posts: 244

Message Posted:
15/12/2008 16:08

Why not get your Advocate to draw up an agreement with the builder/bank to ensure all payments for the unsold properties are paid direct to the bank?