Buying off plan - vanishing balcony
Discussion
Any property bods around?
My PA has bought a flat off-plan which is due to complete in June. The plan showed a walk-on balcony (small, about 2m x 1m) - she was however very keen on having a small bit of outside space (it's her first home too, so excitement levels are high).
She put a deposit down way back last year, but completion is finally looming (June/July) - just today the builder has said that the walk-on balcony will now be a Juliet balcony. No compensation has been offered, merely the opportunity to rescind the contract. Reasons given are planning related, but it seems that cost is a big driver.
When my PA agreed to buy she got some 'early doors' inducements and discounts, and a similar flat in the block, without balcony, is now on the market for about 15-20% more. Thus getting my PA top bugger off seems to be in the builder's interest.
Is there a half-decent chance of a remedy for her? Seems to me that she may have to just suck it up; indeed it's probably a cold reality that it's in her interest to do so.
It boils my piss - this kind of behaviour totally takes the sheen off the home-buying experience. She is just in the process of flogging her Clio Sport (with Cup suspension too) to free up monies for her new home, and now she's not sure if she should proceed with that...
Anyway, any views appreciated.
My PA has bought a flat off-plan which is due to complete in June. The plan showed a walk-on balcony (small, about 2m x 1m) - she was however very keen on having a small bit of outside space (it's her first home too, so excitement levels are high).
She put a deposit down way back last year, but completion is finally looming (June/July) - just today the builder has said that the walk-on balcony will now be a Juliet balcony. No compensation has been offered, merely the opportunity to rescind the contract. Reasons given are planning related, but it seems that cost is a big driver.
When my PA agreed to buy she got some 'early doors' inducements and discounts, and a similar flat in the block, without balcony, is now on the market for about 15-20% more. Thus getting my PA top bugger off seems to be in the builder's interest.
Is there a half-decent chance of a remedy for her? Seems to me that she may have to just suck it up; indeed it's probably a cold reality that it's in her interest to do so.
It boils my piss - this kind of behaviour totally takes the sheen off the home-buying experience. She is just in the process of flogging her Clio Sport (with Cup suspension too) to free up monies for her new home, and now she's not sure if she should proceed with that...
Anyway, any views appreciated.
Actus Reus said:
One of the inducements was legal fees, so she's not paying them - their stance is 'money back in full, or buy the flat with no balcony'. And the fact is, if she buys it and sells it on she'll be quite a bit better off most likely.
If they have offered to return the full deposit back, there isn't a great deal she can do. The 'plans' she signed up against should have standard notes on them indicating that they are representative only, or 'for information' on them so there is limited liability.If the flats have increased in value, she'd be better off proceeding but see if she can get a sweetener thrown to compensate for the lack of balcony such as upgraded doors, ironmongery, carpets, better kitchen, extra lighting etc. That way she'll feel she has something back, and it will add some nominal value to her flat.
What paperwork has she signed and what does it say regarding changes in the specification of the property she has put a deposit on? IANAL but if the specification has been lowered, maybe she could be entitled to a price reduction. Personally I'd read every single line of the small print very carefully and if there's any chance of such a reduction, I'd run the paperwork and the situation past a property lawyer. If your PA gives you copies with names redacted, maybe one of the legal eagles in here could give a more concrete opinion.
Actus Reus said:
She put a deposit down way back last year, but completion is finally looming (June/July) - just today the builder has said that the walk-on balcony will now be a Juliet balcony. No compensation has been offered, merely the opportunity to rescind the contract. Reasons given are planning related, but it seems that cost is a big driver.
When my PA agreed to buy she got some 'early doors' inducements and discounts, and a similar flat in the block, without balcony, is now on the market for about 15-20% more.
Seems like she's got three options, then.When my PA agreed to buy she got some 'early doors' inducements and discounts, and a similar flat in the block, without balcony, is now on the market for about 15-20% more.
- Accept the loss of a 1m deep balcony floor that she could never have really sat on anyway.
- Walk away as if she'd never agreed to buy it in the first place.
- Flip it for a 20% profit.
The developer can usually vary the specification a bit, so a 10% loss in floor space is tough cheese for example. Losing an entire balcony is pretty extreme though. Personally I'd have a good read of the contract and ask for some £££. Don't ask, don't get. It's unlikely she will be getting a balcony if nobody else is.
The Surveyor said:
If they have offered to return the full deposit back, there isn't a great deal she can do. The 'plans' she signed up against should have standard notes on them indicating that they are representative only, or 'for information' on them so there is limited liability.
If the flats have increased in value, she'd be better off proceeding but see if she can get a sweetener thrown to compensate for the lack of balcony such as upgraded doors, ironmongery, carpets, better kitchen, extra lighting etc. That way she'll feel she has something back, and it will add some nominal value to her flat.
Basically that's been my advice - cheers.If the flats have increased in value, she'd be better off proceeding but see if she can get a sweetener thrown to compensate for the lack of balcony such as upgraded doors, ironmongery, carpets, better kitchen, extra lighting etc. That way she'll feel she has something back, and it will add some nominal value to her flat.
As for 'what does she want' - really she wants the flat with the balcony, but failing that the flat without a balcony and a few grand sweetener. Granted she's still got a good deal, but that's not her fault - they did a deal, and in a fair world, IMHO, they'd build the flat as described.
Thanks to all for your replies.
Actus Reus said:
...and in a fair world, IMHO, they'd build the flat as described.
I can't imagine the build cost between bolting a flat metal railing across the window and bolting a metal railing plus a metre-deep floor on, is even remotely significant.If it is down to planning - easily checked - then it's not really the developer who can be blamed.
motco said:
Try looking at the planning inspector's report to give a lie to or confirm whether it really is a planning matter. If not the builder is lying and in a weaker position I would assume.
The developer will be lying, the removal of the balconies won't be a planning requirement, it will be a cost saving measure to increase profits.I suppose the question here is could the developer take this to an extreme with no comeback and build you a 2 bed shoebox instead of the 5 bed detached mansion you were expecting and tell you to suck it up?
That's a fairly scary thought for someone who's just put a deposit down on a house that's currently 8ft tall.
That's a fairly scary thought for someone who's just put a deposit down on a house that's currently 8ft tall.
TooMany2cvs said:
I can't imagine the build cost between bolting a flat metal railing across the window and bolting a metal railing plus a metre-deep floor on, is even remotely significant.
As a one-off, I would agree. On a development of say 50 flats, removal of glass panelled balconies and savings on decoration and load testing, simpler threshold details and a little time on each, replaced by simple powder coated railings could be a £3 - £5k saving on each. Circa £200k extra profit for the developer may not be so insignificant, or may off-set the structural steel price increase, the living-wage cost increase, or even just cover another cost-plan error. Little things on larger developments soon add-up.Cost is certainly mentioned - here's the planning permission description (there were other changes also made):
"The amendments proposed are due to several factors which have arisen through the development of a refined design. These include changes:
• required following a full, comprehensive measured survey of the building.
• required to meet Building Regulations
• made to ensure the proposals are economically viable
• made following refinement and optimisation of the scheme
Previously proposed balconies have been refined and reduced to now be of Juliet balcony
style. "
"The amendments proposed are due to several factors which have arisen through the development of a refined design. These include changes:
• required following a full, comprehensive measured survey of the building.
• required to meet Building Regulations
• made to ensure the proposals are economically viable
• made following refinement and optimisation of the scheme
Previously proposed balconies have been refined and reduced to now be of Juliet balcony
style. "
this is another tricky one like the guy that got his Aston in the wrong colour. Normally you would just say "refund" but you lose out. I can also see the benefit to the builder of selling some properties 'off plan' using the deposits to start the ball rolling, then when nearing completion he knows they will be easy to sell now so hes not bothered if he has to give money back.
Be interesting to see what would have happened if house prices had fallen in the build period.
This puts seller of appreciating assets in a very powerful position !
Be interesting to see what would have happened if house prices had fallen in the build period.
This puts seller of appreciating assets in a very powerful position !
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