New house value £0

[Bananacloud]

Aibu to think HOW ON EARTH THIS HAPPENED!!!
So it turns out the developers of the new build I’m currently living in, totally disregarded council opposing them to build on the land they actually built on.
So now, it turns out our houses (13 in total) have £0 value due to being on a former dumping ground (I think) also there’s been some mention of gases (really don’t know what that’s about)! Whatever it is, it’s bad!!
So now I’m wondering, where we stand with

1. The mortgage lenders
2. The original conveyancer (who ticked the building off as acceptable)
3. The developers and our lawyers who dealt with the house purchase?

Any idea what will happen???

There was something in the news recently about some developers building more houses on land than they had planning permission for, and the repercussions for the people who had bought those houses.

There seems to be a lot of it about.

As BlankTimes suggested look at old maps. See if you can get copies from the Land Registry. If they show landfill or similar show neighbours and see if you can get all home owners onboard.

Eh. This makes no sense. How on earth did this get missed on the searches. Banks lend against the value of the property based on the survey. I assume (98% of people) you used one of the companies recommended by your bank? What kind of solicitor misses something like this. In fact how do 13 surveyors and 13 solicitors miss this. The developers would have needed to pass building regs. If the development had no planning permission how on earth did it pass building regs completed by local council? This doesn’t make any sense

If it was a new development sometimes they recommend a solicitor who deals with all the plot sales either at a reduced rate or included in the package sayjng it will be quicker cheaper etc because they know the documentation. They also sometimes act for the lender.

Go to a litigation lawyer dealing in professional negligence cases. On your remortgage someone also cocked up.

At the end of the day the conveyancer appears to have been at fault and there will be insurance to cover your losses! Check whether you have legal cover with your contents/buildings cover but again - beware - they may want you to use a budget/factory style law firm.

You may be better off sourcing your own. If you want to pm which area you are in I may be able to recommend someone.

You need to speak to a litigation lawyer, and fast - don’t agree to any resolution that hasn’t had a lawyer representing you only look at it.

I think there has been a massive misunderstanding somewhere. I'm not a solicitor but I used to work as a paralegal in residential development (in-house legal department and specialist solicitors) and I would be very surprised if this happened so I can't believe this is as straightforward is it appears.

Having said that, sometimes we acted as "recommended solicitors" for purchasers on a some sites so it is feasible that the same solicitors could have acted for all 13 purchasers.

OP, was it a big name housebuilder or a small local builders? And how did you find out about it?

In fact how do 13 surveyors and 13 solicitors miss this.

Because, as I understand it (happy to be corrected if wrong), valuation surveyors pretty much only look round the property to see what it is - i.e. you're borrowing on a 3 bed detached and it turns out it's a 2 bed terraced. And with a new house, you're only likely to have a valuation survey as you wouldn't expect any problems with damp etc at that point.

Even in a full structural survey, they don't do borehole tests into the foundations. It could easily be missed by the surveyor.

If it's on an old landfill, the gases are EXTREMELY DANGEROUS. It's predominantly methane which can combust (explode in to fire) if uncontrolled.
You can definitely sue them and recoup your loss if this is the case but DO NOT MOVE IN.

Consider a class action with your affected neighbours too.

Shit... you already moved in. You need to see the levels of methane being exuded.

OP
Sorry to hear this.

Who has told you that this is the real valuation?

This is terrifying and I'd imagine likely to get expensive very quickly. Can you get together with all your neighbours and go and get joint legal advice?

If the litigator think they'll win (usually via out of court settlement, avoiding the time and expense of court), they may offer to act on a no-win-no-fee basis. That's perfectly legit; remember you'll be approaching them, as reputable lawyers, not them you.

Thank you for all your advice, it’s gave us lots to think about.
Regarding all the street fighting together, that’s the plan I think. We’ll be having a meeting in next few weeks so will know more then.
The gas has got outlets situated around the field so I don’t think any explosions is a threat.
Also, we didn’t think about house insurance (crazy I know) 😂 so will look into how we are covered.
I know I was going to delete the post And yes you’re right about the brilliant advice. But I didn’t want to risk outing any neighbours. But since I’ve been careful not to enclose any information about area we are in I think we’ll be ok.

@TheWiseWomansFear this is why I suggested hiring some gas detection equipment!

I'm glad I'm not the only one that has picked up in the combustible's!

@Bananacloud - you really need to know what you are dealing with Gas wise. Not to put the fear in to you but along with the flammable gases, there could be anything down there - anything that displaces the oxygen in your home could be potentially fatal! (From memory, it's more likely to be Methane as I mentioned before) this shit is dangerous and you really need to get on top of it ASAP!

@Bananacloud if there are gas outlets, there is most certainly gas down there and your home should be equipped accordingly! Just because there are outlets doesn't mean that all the gas will move so that it only comes out of the outlets, it will escape wherever it can, whether that be your back garden or your kitchen floor! Xx

Have you disappeared, OP or are you on the phone to the council/solicitor etc trying to get to the bottom of things?

The more I think about this, the more I think it must be a misunderstanding. Maybe the initial planning application was turned down but subsequently revised and approved or something (2 of DP's BIL's are in property development, and one project took 4 or 5 planning applications before it was approved; nice BIL's current extension took 3 applications, because his neighbour is a vindictive fuckwit).

To build and sell 13 houses, with mortgages, without PP just defies belief.

Please come back and let us know the outcome! I really hope that someone has simply got the wrong end of the stick and reported it to you as a fact.

Have you got a home warranty that came with the property?

This should have been picked up by the solicitor

Are you sure it doesn't have planning permission signed off ?? street naming, bins and other really important things aren't available until permission is fully signed off

It's ok to build on old waste land but they normally bury the soil and raise the level...

Who are the developers

Also, we didn’t think about house insurance (crazy I know) 😂 so will look into how we are covered.

If you've got a mortgage, you will almost certainly have buildings insurance - this should have been put into force when you exchanged contracts.

Listen when I worked with developers

I literally had to give every certificate under the sun for a sale to complete to our solicitor

This included electrical gas street naming building control a letter from the authority to say when the site was signed off
Bin certs ...
environmental approval

Honestly I think this is a misunderstanding

For a home warranty the builder will have been tracked every single step of the way by the insurer and that includes things like the noise levels, pollution even the depth of insultating foam in cavities

I find this impossible to believe

If it is at all helpful (and I usually don't post on these types of threads as I know we aren't exactly popular) I'm a personal finance journalist - happy to put in some calls for you, in confidence, and see if I can help clear this up. DM if that's useful

How did you find out about this OP?
Agree with the PPs that there must be a misunderstanding somewhere along the way.

Either your developer or your solicitor should have insurance - see if you get can a fighting fund from all neighbours as suggested previously. Someone would need to be prepared to take charge and chase up contributions though (unless you could find a firm to do it on a no win/no fee basis).

(Sorry to derail, but “thebabysmellsofpooagain”, what a username )

Hope you find it is a misunderstanding, OP.

Also, we didn’t think about house insurance (crazy I know) 😂 so will look into how we are covered

I thought you needed insurance with a mortgage?