Developer missed long stop date

[ivan j 10]

Hi all,

I have bought 4 properties in a development and as seems normal, the developer has missed the target completion date and has now sent a "deed of variation" seeking to extend the long stop date and target date. (Original long stop date was December 2019, proposed new long stop date is May 2020)

The cost for my solicitor to approve this extension is relatively high. 

My feeling is that it is not in my interests at all to extend the long stop date. The contract gives me the right to pull out of the purchase after the long stop date has passed. I do not expect to pull out, but as I see it, there is nothing in my favour to extend the long stop date. 

Naturally I am checking with my solicitor, but would be good to hear any similar experiences. 

Cheers!

JJ

 

[Edwin 8]

But does this also mean that the developer has the right to pull out if the long stop date is passed?

Another factor will be how well house prices have done over the build period to date.  If they have increased significantly since the original price was negotiated on the contract being signed, this could be a reason to go ahead with the contract variation and carry on with the deal. Of course, the opposite would be true if prices have not done as expected and you wished to pull out of the deal