tallsuk
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Post by tallsuk on Feb 4, 2022 11:09:33 GMT
There was at least one case (Birkenhead on MT) where an unfinished block of flats, mostly already sold off plan, went bust and some of the flat buyers had protected their investment, possibly by some sort of entry in the Land Registry. My daughter is in a similar position and would like to do the same but her solicitor is unsure what she is referring to. Can anyone explain? I think that the protection is something offered by the developer. I would have thought a solicitor knew all about this. This site should give you some pointers: propertyhub.net/off-plan-property/
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littleoldlady
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Post by littleoldlady on Feb 4, 2022 11:11:43 GMT
Solved. It's a thing called a UN1.
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tallsuk
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Post by tallsuk on Feb 4, 2022 11:15:00 GMT
Solved. It's a thing called a UN1. A UN1 lets you register a charge against property and stops it being sold but I am not sure it offers protection against a developer going bust and taking your deposit with them.
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ilmoro
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Post by ilmoro on Feb 4, 2022 11:58:32 GMT
A UN1 doesn't stop the property being sold, it is merely an entry on the register to show you have an interest. It can be removed upon sale of the property. It is more complicated if you have paid a deposit in a relation to a sale. Then you have an equitable lien which usually makesyou a secured creditor. However, whether you will get any money back depends on where you rank. The UN1s can be removed by applying to court for 'clean' title which means any sale will occur without any obligation to honour the contracts. Buyers would then just be secured creditors and if there is insufficient money to repay them they get nothing
The MT case referred to saw the sale with clean title, three buyers ranked ahead of MT so got paid, the rest got nothing.
That's just my understanding from P2P examples. I would strongly suggest legal advice as there seem to be various scenarios dependent on circumstance. There seems to be more than one type of UN and people have been caught out by not having the right one (Huddersfield Lendy loans)
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tallsuk
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Post by tallsuk on Feb 4, 2022 12:09:02 GMT
ilmoro clearly knows far mor than I do about these sort of things but the link in my first post talks about holding the deposit in escrow or specific insurance policies that that could save the actual legal issues involved with becoming a creditor.
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macq
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Post by macq on Feb 4, 2022 12:56:22 GMT
From memory the solicitor is supposed to check if the developer has insurance to cover against things such as going bust or over runs etc (the NHBC should cover a deposit if its in place?)
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