Is this conspiracy to commit fraud?Make Text Bigger
I used a sourcing company to source me a newbuild flat. I was given assurances by the sourcing company that the property would be “mortgagable” before I exchanged contracts. The properties have now been built, however, we have been unable to obtain finance. We have used the in-house mortgage broker, as recommended by the sourcing company, however several lenders/surveyors have refused to lend on the properties.
The developer has now proposed that they issue notice to complete within two weeks, and if we are unable to complete within two weeks, we are given a further six months to obtain finance. This is completely unacceptable – we only exchanged because we were told by the sourcing company that we would be able to mortgage these properties (we have email proof of this). We cannot afford to complete with cash.
We are now in a difficult situation. We have obviously put down 10% as an exchange deposit, and also paid a fairly large fee to the sourcing company. The sourcing company initially suggested that the properties would be remarketed as cash only, and we would be refunded both our exchange deposits, as well as the sourcing fees, but this was never formalised.
The sourcer and broker have acted poorly throughout, repeated broken promises and poor communication. They claim to be acting in our best interests, but at the moment seem only to be be interested in protecting their own fees.
I also received the below email from someone at the sourcing company-
“Please note that the developer contributions being offered can affect the lending (the value of the contributions would be seen as cash incentives and as such would be taken off the purchase price) so we would have to ensure they weren’t made known to the valuer. I’ve made (broker at sourcing company) aware of this, so that he is up to speed and we would ensure that the developer didn’t disclose this on his paperwork too.”
There were a number of incentives offered, such as free legals, stamp duty paid, free property management for six months. This in my mind amounts to conspiracy to commit fraud, which is a criminal office, and can carry very heavy fines.
I made a complaint about the broker because he was so bad at communicating with me, he never replied to emails, never answered the phone, and did not seem to be taking this seriously at all. We have been told several times that the next mortgage lender was very likely to lend, only for them to decline. Four separate surveryors have visited so far, all have declined to lend. Since then, the broker has not communicated with me at all for a period of one month.
I am really at a loss as to what to do now.
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