Stewart Milne goes into Administration

Transform_IT said:
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.
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Seems like a baffling situation that the Administrators would rather lose the sale entirely than offer discounts to encourage you to take the property as it is and reclaim some much needed cash.

I guess the driver for the decision to rent or not, is also how easily you think you'd be able to get another buyer at the same price? How's the market moved? Would you likely lose a chunk of cash to pull out and re-list?
 
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There is a new build development of about 6 houses round the corner from us, the developer went bust, they stiff there half finished no roof on, for about a year and a half.

Someone has now taken them in and they are being built again but personally would not go near them with a barge pole seen as how long they have been exposed to the weather and damp.
 
About 15 years ago, under completely different circumstances, we temporarily moved into rental accommodation to help the chain complete and prevent us losing the house we wanted to buy. But month later the chain still collapsed for other reasons and we got stuck renting for a long time. I wouldn't do it again.
 
dowie said:
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).
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I already kind of answered this in 1st reply, OP needs to check with the lender, you can't really make a decision on whether to break the chain and go rented or not without knowing what the lender can offer regarding suspending the port.

Once you know, then you can make a more informed decision. The terms may differ from lender to lender so you can sort of assume it's possible, but best to get confirmation from the horses mouth.
 
dowie said:
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



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...)

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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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I guess another option to consider, to keep your buyer sweet, is work out how much it would cost you to move into rental for the ~6 months, and offer them a reduction/discount which is some % of that.

It's still going to cost you a bit, but cheaper than renting + multiple moving costs, putting stuff in storage etc. plus you get the convenience of staying in your house.

Obviously only do this if it seems likely they're going to pull out of the purchase otherwise.
 
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Transform_IT said:
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.
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What a rubbish situation :(

I would not let yourself be pressured into moving early. It's not your fault your purchase has fallen through and you do not owe the buyer, or the rest of the chain, completion. They, of course, want you to suck it up and make things easy for them - fair enough - but that doesn't mean it's the best option for you.

Moving into a rental would be a considerable additional cost for you - rent, and an additional house move to pay for - as well as a substantial inconvenience. I would try and arrange something you're happy with as soon as possible, but if you can't figure something out and you lose your buyer so be it. You'll just need to go through the selling process again.

Also, I agree with those saying stay away from the administrators selling the house - unless they're offering a massive discount - since you're likely to get minimal support for any problems and the estate itself may stuck in limbo with incomplete services.
 
Mr Jack said:
Oh, they're Scottish based? Is your sale also in Scotland? I know the system is different up there, so not sure if advice from those of us used to the English system is relevant.
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I think as long as he's still pre-exchange, it won't make a substantial difference
 
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