Lizzy steel
BBC Yorkshire and Lincolnshire Investigations
Bbc
Luciana and Enrico Marini lost more than £ 21,000 after being able to obtain a mortgage on a house they were buying
With a panoramic view of Leeds, an elegant decor and a sports hall on site, the new Enrico and Luciana Marini parents dreamed of their future life in their city center.
But after six years of economy, buyers for the first time lost their deposit of £ 21,000 after the new construction apartments were devalued by the mortgage lenders they approached.
The BBC spoke to several potential owners who have received the same news “that shake”, breaking their finances and their plans.
Unable to obtain a mortgage and locked himself in a contract, the developer legally had the right to maintain his deposit – despite the fact that the pair had to withdraw from the sale.
Ms. Marini says: “They get your money and say,” Don’t worry about the mortgage up to three years. “”
The couple said they felt “under pressure” by real estate agents of the North Property Group to purchase in 2021, with a reservation costs of £ 5,000 non -refundable in a limited discount of 10%.
The couple filed a deposit for an apartment with the development of Phoenix in Leeds in 2021
The agent and a lawyer recommended by the firm told them that they did not need a mortgage offer until the £ 230,000 apartment was finished, according to the couple.
“All the money we are going to invest in our family, the things you want for your children is just lost,” adds Marini.
“It’s just devastating.”
North Property Group “categorically denies allegations of high pressure sales tactics,” said a spokesperson.
“All buyers have the right to make reasonable independent diligence before engaging in a purchase.
“Buyers have been informed of the available units and have had the opportunity to secure them – no one is never forced to get involved immediately.”
The development of Phoenix 364-Apartiment opened its doors in October 2024
“We were buyers for the first time and relatively new in the United Kingdom, so we did not really know how it worked,” said Marini, from Brazil.
“It was shaking the earth when we discovered that we should then have obtained a mortgage offer.”
After more than a year of construction delays, the couple approached lenders and was shocked to find refused mortgage requests.
The surveyors cited a range of reasons to devalue property, including location and too much purchase investments.
Group torsion, the developer, says that he cannot comment on the independent agent, but he “expects them to work with the highest professional standards”.
“The property was built on the specified finish and all the structural, safety and quality expected standards were delivered during the contractual period,” said a spokesperson.
Chinogureyi Patience lost £ 51,000 in fresh, deposits and furniture on two apartments
“We had very good credit scores, we had enough income to cover payments, so it was very surprising for us when the mortgage was refused,” said Marini.
“I cannot express how sad, stressful, degrading, it is,” explains Ms. Marini, from Italy.
When “out of plan” properties are sold, it is “a common practice to wait until the date of completion before making a mortgage request,” said Mundy’s specialized lawyers, one of the agent’s recommended lawyers.
“The reason is that any mortgage offer issued before the exchange of contracts would inevitably expire before the completion date and should be renewed.”
Patience Chinogureyi paid £ 51,000 in costs, deposits and furniture on two Phoenix apartments as purchase investments.
During the exchange of contracts, she said that she was told that a mortgage offer was not necessary at this stage, as long as she could finance the properties.
The lenders then refused his requests, quoting the same problems for assessing property.
“I couldn’t sleep because that’s all I think,” she said.
“I don’t know where to start because I lost this money – I don’t know how long it will take me to work and recover it.”
North Property Group says that buyers are “free to choose their own legal representatives”, with a total of 29 independent legal firms advising customers on Phoenix contracts.
Carolyn Barraclough was a buyer in cash and fears that his apartment will not come from what she originally paid
Carolyn Barraclough successfully bought one of the apartments, near the A61, for his son using money from an inheritance, but he never moved due to construction delays.
“The agent said that she would hold the property for me for an hour, so I got a taxi at the office,” she recalls.
“I was told that I would need to place booking costs immediately because someone else had already been on the phone – if I left the building, it was going to go to them and it was the last.”
Ms. Barraclough says that she has never been invited to the value of the apartment and that she fears that she cannot sell.
“It was obvious that I was new in this type of thing, I never bought ownership before for an investment other than the house in which I live,” she said.
“I didn’t know any of the traps.”
The developers say that Phoenix is the fourth highest residential building in Leeds
Offering advice on best practices, Sarah Cookson, director of Switalskis Solicitors, says that buyers should always obtain a mortgage offer before exchanging contracts and paying a deposit – even when buying a plan.
“It is very unusual not to advise a client to do so,” she said.
“A mortgage offer and an evaluation are essential – a surveyor could always value what will be built.
“They would look at the documents and said whether or not it was a good purchase.”
She adds: “You would not buy a car that does not have a word certificate, why would you buy a house without promoting it?”
Sarah Cookson, director of Switalskis Solicitors, advises never to exchange contracts before a mortgage offer is in place
All the buyers who were pronounced by BBC News say they would have obtained mortgage offers before exchanging contracts if they had been invited to do so.
North Property Group says: “Buyers have been informed that mortgage offers are generally valid for six months, which is standard for off -plan purchases.
“Landers call the surveyors independently to assess the value of properties, and market conditions have evolved considerably in recent years, affecting mortgage approvals.”
He adds: “Since 2017, North Property Group has managed to negotiate 1,007 sales.
“Of these transactions, 857 were off -plan purchases.”
A spokesperson for Mundy’s specialized lawyers said: “We know that some buyers were unfortunately not able to finish their purchase of apartments within the Phoenix.
“We have of course all the sympathies with these buyers and are extremely sorry for the difficulties they encountered.
“Nevertheless, it must be said that we acted for many customers who have finished their purchase of apartments without any particular problem.”
They add: “We do not accept the suggestion that we have not given any legal advice appropriate to any buyer on this development or that we have not explained the risks insofar as they relate to the acquisition of properties.”
