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How much compensation to agree?

(5 Posts)
Eve Sun 14-Feb-16 08:38:59

Due to builders negligence we have had to move out of our house for nearly a year while they fix the issues. The issues could have been fixed in 12 weeks but they have been slow in getting organised and stress has nearly driven me over the edge at times.

They have agreed to pay compensation.... But I have no idea how much is a reasonable amount? 4 of us, national chain of builders, moved from 5 bed into cramped 3 bed for a year, most of our things in storage.

10% of purchase price was suggested. I have hunted on Internet for guidance and can't find anything.

I have a couple of solicitors who approached me to take on the compensation case, but don't want to go down that route.

bb888 Sun 14-Feb-16 08:40:46

Could you look at it more from a point of view of removing the loss that you have suffered - so the rent on an equivalent 5 bed plus the moving and storage costs?

AppleAndBlackberry Sun 14-Feb-16 08:46:57

I would say a year's rent on an equivalent 5 bed would be a minimum, plus any other costs you incurred.

Gobbolinothewitchscat Sun 14-Feb-16 08:48:23

You have to firstly calculate you actual losses - eg £2,000 for storage. Then add on a bit fir loss of amenity - eg you were in a smaller less nice house. Then a bit for general inconvenience/upset. Not sure where in the country you are but the Scottish and English legal systems don't really award punitive damages (unlike the US) so really you can only look to recover actual losses plus a bit for the upset caused.

If I were you, I would also approach the builders and say you are sure they want a legally binding settlement agreement to with you. Therefore, yunwZnt to take legal advice (for the purposes of the agreement - not to sue them) to make sure you are fully advised. If you are not, then arguably the agreement could be set aside later so it's in everyone's interests. Therefore you would like them to pay a sum - say up to £3,500 plus VAT - in legal expenses to let you take advice. Ask for this first - it's worth getting proper legal advice to make sure you recover all you can

PinotPony Wed 17-Feb-16 14:03:38

The purpose of compensation is to put you back in the same position you would have been in, as far as possible.

Why do you not want to instruct a solicitor? They would be best placed to advise you on the value of your claim and negotiate on your behalf. A good firm should work on a conditional fee agreement.

If you do want to do it yourself, you need to work out what your actual losses have been. Include storage costs, additional rent / mortgage payments, additional travel costs. The harder part to value is the claim for inconvenience but this is likely to be quite modest, say a few thousand..? You certainly won't get anything for "stress" as you've not suffered a recognised psychiatric injury.

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