A recent High Court case illustrates the dangers of buying “off plan” and these are dangers that all buyers need to be warned about.
The case involved a proposed redevelopment of a hotel in Birkenhead into 62 flats. The flats were sold off plan with deposits of 25% being used to fund the project. There was also bank lending secured on the property.
The developer went bust and the flat buyers wanted their deposits back.
Who got preference – the buyers or the bank and did the buyers manage to recover their deposits?