Stewart Milne goes into Administration

Transform_IT

Transform_IT

Transform_IT

Associate
Joined
18 Oct 2012
Posts
474
Hi guys,

We were in the process of selling our house and purchasing a property from the developer, Stewart Milne. We learnt late last week that they had called in the administrators and as a result, the sale has been halted. We were two weeks off exchange and completion.

We are currently living out of boxers as is our buyer, and their buyer too.

As part of the chain, our buyers don't want to lose their sale and have asked if we can move into rented whilst we find somewhere. The issue we have is we were porting our existing mortgage rate, thus meaning we could afford what was a beautiful property.

With our onward purchase ceasing and it likely to fall through, does anyone have experience of this situation?

We have seen a property we like but it isn't ready until July. If we were to set things up with the bank, could we complete on our sale, move into rented and port our mortgage and rate over when the new property is ready? Or, is it a case of, once we've sold our house, we'd have to have another mortgage product immediately in order to keep the rate?

I will speak with my FA tomorrow, but thought I'd ask the question here. Unless somebody else has another solution or scenario we could explore.

Thanks,

T_IT
 
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As I understand it, your lender may let you temporarily break the mortgage and resume it on the new property, but this may be a time limited thing.

If the onward purchase gets delayed, you could wind up facing ERC fees and lose out.

Best to speak with your broker or lender and find out what options you have.
 
HungryHippos said:
As I understand it, your lender may let you temporarily break the mortgage and resume it on the new property, but this may be a time limited thing.

If the onward purchase gets delayed, you could wind up facing ERC fees and lose out.

Best to speak with your broker or lender and find out what options you have.
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Cheers bud.
 

What happens at the unfinished sites?​

Trade roles working on the housebuilder's sites will also go as a result of the firm's collapse. The administrators said sub-contractors should not undertake any more work for the business, and site access - for example to collect equipment - should not be attempted unless approved by the administrators.
Teneo said the company was "exploring its options" but was looking to work with other developers on the completion of unfinished sites.
Buyers who have purchased or reserved homes from Stewart Milne Group and have not yet moved in will be contacted by the administrators directly.
Current residents with outstanding works are asked to contact the [email protected] for further information.

www.bbc.co.uk

More than 200 jobs lost as housebuilder Stewart Milne goes bust

The north-east Scotland based Stewart Milne Group failed to attract any viable offers after being put up for sale.
www.bbc.co.uk

Is this any use to you?
 
Derek W said:

What happens at the unfinished sites?​

Trade roles working on the housebuilder's sites will also go as a result of the firm's collapse. The administrators said sub-contractors should not undertake any more work for the business, and site access - for example to collect equipment - should not be attempted unless approved by the administrators.
Teneo said the company was "exploring its options" but was looking to work with other developers on the completion of unfinished sites.
Buyers who have purchased or reserved homes from Stewart Milne Group and have not yet moved in will be contacted by the administrators directly.
Current residents with outstanding works are asked to contact the [email protected] for further information.

www.bbc.co.uk

More than 200 jobs lost as housebuilder Stewart Milne goes bust

The north-east Scotland based Stewart Milne Group failed to attract any viable offers after being put up for sale.
www.bbc.co.uk

Is this any use to you?
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We've made contact with them but it's like drawing blood from a stone. The houses either side of the one we were purchasing aren't finished and are still building sites. There is no guarantee when they will be completed and even if they are, no further information regarding snags. The houses are part finished internally and we have been told that that's how they will come. No further discounts applied, despite issues and snags already visible.

At this point, we have no confidence in the builder or administrators are don't feel confident or comfortable proceeding.
 
HungryHippos said:
Sounds like the sale could still go ahead, but make sure the house is complete and who handles any issues with snagging etc.
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This is the issue, we've had a look at it today and the snags I can see are as long as my arm. Not to mention no further information or insight as to who will rectify them (if anyone at all).
 
In that case yes I would definitely consider your options carefully, paying full price for an unfinished house, with no ownership of issues, and with the area in flux as to whether the rest will get done isn't great.
 
I did a job on a new build recently and the builders had gone into administration a couple of years back, roads were unfinished with the local council saying private estate and nothing to do with them. All verges and general maintenance was being done via Facebook group of residents.
Whole situation was very sad and you could see the impact it has had on the residents :(

Edit to say there were empty shells of 4 and 5 bed houses left unfinished
 
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My mind is made up about the development. We are cutting our losses and won't be proceeding. We have seen another property at a different developer (Storey Homes), but it isn't ready until June. Our buyers are pushing for us to move into rented. If we were to do so, could we pause our mortgage so we are able to take our existing rate to the new place when it's ready in June?
 
Don't proceed with that house is my advice for same reasona outkined above, and I've seen it drag in a neighbouring estate of mine. Good luck with an alternative solution.
 
Beyond the unfinished houses, you also have the uncertainty on who looks after the road and vicinity and such as well so I agree with not proceeding here.

ZedPowered said:
Yea would be really concerned with snagging. I guess NHBC claim rather than the developers?
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Not worth the paper it's written on imo, NHBC are fairly toothless.

Transform_IT said:
If we were to do so, could we pause our mortgage so we are able to take our existing rate to the new place when it's ready in June?
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I think you can only really find out from the lender.

It might mention on your initial mortgage offer as well.
 
You may find it difficult to find a short term rental and at such short notice. Unless of course you have one lined up already, but don't commit to anything to anybody on the chain until you've found something to rent.

You are right to walk away from that unfinished house and estate, your lender may not even provide a mortgage on it if they know the situation.
 
I think most of these replies are going off the thread title and initial few lines and are missing the question the OP is actually asking. Lots of posters are answering telling him to not buy the unfinished house that he's already not buying??? :confused:

He's already indicated in the OP that he's found a different house he likes (which isn't available yet) and he is asking about the mortgage.

I.e. Does he break the chain and stay in his current house for a bit longer or does he move into rented accommodation (which may mean he loses his current mortgage deal).

@Transform_IT

In some circumstances, there may be an unavoidable delay between when you sell your current property and when you buy the next one, including when the mortgage debt is paid back to the lender.

But in this case, most lenders will still allow you to port across the same deal. Usually, you’ll be given a grace period of around three months.
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The negatives:

It's not looking too promising that you'd be able to keep your existing mortgage deal if the other house you're interested in isn't available till July.

Also short-term rental is likely to be more expensive than just staying put in your own house (unless you're perhaps in a large house, sticking stuff in storage and renting a much cheaper place for a bit.)

The positives:

You'll have sold your current place, less faff trying to find a new buyer (how difficult or easy was it first time round?)

Maybe a marginal benefit in that you'll not be part of a chain so would be a desirable buyer for the house, maybe moot if it's another new build though.

I guess you get to not let down the rest of the chain but really, this wasn't your fault, these things happen and obvs you shouldn't need go out of your way to the point of losing thousands yourself. Is the mortgage a particularly good deal say a 5 year+ fix etc.. how much would short-term rentals cost in that area vs staying put given you could be in one for 6 months? Extra faff to find a new buyer but also extra faff to move, not fuily settle in/unpack and then move again 6 months later (then again stuff in boxes already so...)

edit:

Obvs lastly, it's not guaranteed that the chain would break, 6-month delay might still be workable even if they're miffed about it, in which case I'd try and get an offer accepted for the new house asap (moot again if it's another new build). In fact, if it's another new build and you can almost deffo buy it this summer then maybe just push back on your buyers "sorry guys but delayed for 6 months" and see if they're still happy to go ahead... they may want you to go into rental accommodation but that's also an option they can take too!
 
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Transform_IT said:
If we were to do so, could we pause our mortgage so we are able to take our existing rate to the new place when it's ready in June?
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This is something that only your mortgage provider is going to be able to confirm - they may make an exception due to circumstance if you talk them through the scenario but I wouldn't pin too much hope on this.

I would echo what @dowie is saying above too - look out for yourself and do what's right for you, don't put yourself in a difficult circumstance due to pressure others are putting on you to suit themselves. Also as suggested, if they are more concerned about the chain collapsing than you are (which is not guaranteed, everyone might be ok to wait 6 months you never know), it is an option for them to rent for 6 months if you can confirm a new purchase and moving date in the summer (my guess is they are also porting a mortgage product though and won't want to do this).
 
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