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Dear all,

I bought a 2 bed new build, conversion in 2016 and the build has not finished. The developer is Stephen Beech (Beech Design and Build/Beech Holdings) and the development is One Cross Street in Salford just outside Manchester city centre.

The developer clearly ran into financial difficulties, one issue was that he had to rebuild the timber frame of the building, something they hadn't anticipated and took up a lot of cash. One of the contractors went bust during the build and 3 years later we still have no end in sight, the developer is completely refusing to honour the contract, under which I would have been receiving significant income on my deposit and guaranteed rent, totalling about £20K to date. 

The developer has been promising to issue a new contract with different terms because he doesn't like the old terms. There seems to be no legal basis for this and my solicitor (Allchurch property) and the agent through which I bought the property (Surrenden Invest) are keeping too quiet about it and not being very useful. I've been advised that litigation is best avoided and could be a nightmare, but how long do I wait without hearing anything before taking legal action?

The last thing I heard was before Christmas when I was told we should expect a new contract imminently, now over two months and it's gone quiet again.

I'm amazed that when I search through this database no-one else has been on here to discuss One Cross Street, Beech Holdings, Stephen Beech or Surrenden Invest. Please contact me if you invested in this!

Any legal advice or support or questions much appreciated.

 

Best wishes,

 

Michael

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Not sure why you should enter a new contract (unless the terms were favourable and came with Guarantees).  Delaying too much when faced with broken promises rarely helps as a struggling company has more time to dissipate funds......

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There seems to be very little I can do. Pulling out isn't possible because whoever drew up the contract made an error and buyers may not be entitled to their full deposit. 

You're right about the contract, unless it is more favourable to me I'm unlikely to agree to it. I'm going to ask they take what they owe me off the price of the unit and leave it at that.

Thanks,

 

Michael

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  • 6 months later...

Hi Michael,

I wish I’d found this forum sooner. I am also an investor in One Cross St. I’m being heavily pressured by Beech to sign a settlement agreement which I think is grossly unfair. Litigation seems to be the only alternative but risky and costly. I’m trying to find other investors to see if there’s anyone else who hasn’t signed the settlement yet. Am I too late?

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Hello, 

It's very complicated. Do you want to discuss on the phone? 

 

Basically the developer has totally screwed up. I am very annoyed but ultimately my solicitors (two different opinions) say take the money. Even though we have lost a lot in various ways, at least we get our money back. 

 

 

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Mine are saying the same, I’d likely win if I litigate but it would cost me what I have to gain and there’s a big risk of insolvency while it’s in the courts and then I’d have nothing.

The thing that really annoys me is the confidentiality in the settlement agreement. He gets to ignore the contracts, not pay any of what he promised and I can’t tell anyone...  He’s protected himself so he’s still got millions and he basically got himself an interest free loan from me for 3 years. I have no property, no pension and work insane hours just to try to have some security in the future. I’m convinced the development will go ahead once we’ve been paid off. The system sucks. But nothing to be done about it.

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Oh shit.. I didn't actually realise there was a confidentiality agreement. I can't see how that could possibly be enforceable even if it's in the contract. I understand that by signing we would waive the right to sue but I had come to terms with that. 

 

I completely agree with you. They have messed up at our expense and we've lost a lot of money. What I have heard if it makes you feel any better, I have been promised that the development will not go ahead in its current form... That may be BS. I have also heard that the developer has lost a lot of credibility and is in personal financial difficulty. But I'm sure he'll be fine. 

 

As far as I'm aware we're not contracted to anything until he pays up so feel free to spread the word about him! 

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  • 1 year later...

In the end we got our money back. All contracts were torn up and we never got a penny of interest. I was owed a lot of money and it took me four years from paying the deposit to getting it back. 

 

I wouldn't touch them with a barge pole. 

 

I think the apartments are OK but they're very small. Look at the resale price for their development on Princess Street. Some have come back on the market. They don't look great to me but that's only my opinion. Service charge may also be high. 

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