Investigating the Phoenix development in Leeds, the BBC uncovered a distressing situation involving prospective homeowners losing substantial amounts of money. Enrico and Luciana Marini, first-time buyers, saved diligently for six years to secure a city center flat but found themselves out of luck when mortgage lenders devalued the new-build apartments they were interested in. This unfortunate turn of events led to the Marinis losing a deposit of over £21,000, leaving their dreams shattered.
The Marinis, under pressure from North Property Group estate agents, were coaxed into a deal that ultimately proved disastrous for them. The couple expressed feeling misled, as they were assured they did not need a mortgage offer until the flat was near completion. After facing building delays and subsequent mortgage application refusals, the gravity of the situation sunk in – they were trapped in a legal agreement that allowed the developer to retain their deposit despite being unable to secure a mortgage.
Patience Chinogureyi, another victim of the Phoenix development debacle, shared a similar tale of woe. After losing £51,000 in fees and deposits on two flats, she found herself in a precarious financial position due to the unexpected rejection of her mortgage applications. Despite assurances from agents and lawyers involved, the reality of the situation hit hard when her investment plans came crashing down around her.
Carolyn Barraclough, a cash buyer, now faces uncertainty about the worth of her flat after purchasing it for her son using inheritance money. Feeling out of her depth and unaware of the potential pitfalls of property investments, Barraclough’s apprehension about being able to sell the property adds another layer of concern to an already troubling situation.
Offering expert guidance on the matter, director Sarah Cookson from Switalskis solicitors emphasized the importance of obtaining a mortgage offer before committing to a property purchase. Highlighting the necessity of proper valuation and due diligence, Cookson warned against exchanging contracts and paying deposits without securing financial backing. The unfortunate circumstances faced by numerous buyers underscore the need for transparency, accountability, and sound legal advice in the property market to prevent future financial disasters
Read the full article from The BBC here: Read More
