Steph and Chris Oliver bought a three-bedroom house in 2015 for £130,000 using the Help to Buy scheme, but in 2020 they were told their house was worthless
A couple has been left devastated after making a huge mistake buying their first newly built home.
First-time homeowners Steph and Chris Oliver were excited to move into their new three-bedroom house, which they bought for £130,000 using the ‘Help to Buy’ government scheme. But their joy quickly turned to shock when they discovered a building error that had been missed during the property checks.
In 2015, when they needed a new mortgage, they were stunned to find out their house was worth nothing due to construction issues. And they weren’t alone – all 13 houses on their new estate in Bradford had the same problem, as revealed on BBC One’s Rip Off Britain show in 2020.
Chris, a graphic designer, expressed his disappointment on the show: “It’s a mess. We feel let down by the systems in this country. There’s been so many people who we should have been able to trust and rely on and no one wants to help.”
To make matters worse, Sherwood Homes, the company behind the development, went bankrupt in February 2020, leaving families with unfinished work costing thousands of pounds. “We tried to contact Sherwood Homes. There was no reply. They stopped answering phone lines and emails. We were in a state of panic,” said Chris.
Adeel Afzal, 27, who shares his house with his partner and their two-year-old daughter Anya, nabbed their home for £175,000 in June 2016. “We’ve got a young family. My partner doesn’t work so we are tied into what we thought would be our forever home,” he told Bristol Live.
Discovering it was valueless came as quite a shock. “When we realised it was worth nothing it was a shock. I’m in £150,000 worth of debt to my mortgage provider and I’m paying for a house that’s worth nothing at all.”
One massive issue is the estate’s proximity to an antiquated landfill site. The Council reveals that even though it has been inactive for over four decades, it still releases fatal methane gas when merged with other gases.
Builders were supposed to add a safeguarding layer under each home’s flooring, but residents remain uncertain if they executed the task at all or correctly. Hamid Khan secured ownership of one property, shelling out £180,000 back in 2016.
He speculates that this protective layer was properly installed; however, without proof, verifying would entail ripping open their floors. “You can only verify it if you break the whole floor. It doesn’t make sense,” he explained.
“You’re so close to a landfill site and to not install a gas membrane and not install correctly. It’s just unheard of.”
Gary Rycroft, a pro on all things related to house buying, suggests inhabitants should voice concerns about the solicitors handling their property purchase. “The conveyancing solicitor on the face of it hasn’t spotted various issues you would expect them to spot,” he highlighted.
Mr Azfal said that the property lawyer should have checked things like the environment, the new road, and the drains because they are so important. He shared that neither the Olivers’ nor his property lawyers apologised for their mistakes but agreed to contribute towards the cost of finishing the building work. As a result, he is now taking his complaint to the Legal Ombudsman.
A representative from Bradford Council expressed regret about the situation: “Clearly residents have been let down by the developer and the agencies that worked for the developer, and that is why the Council have supported residents through guidance and advice.”
The council representative added: “We understand that a number of the residents have successfully taken legal action against the developer’s agencies in order to rectify some of the problems on site, which the Council considers to be the correct route for residents to be following.”
A spokesperson from Homes England has commented on the case: “We have been in regular contact with Mr and Mrs Oliver over this matter and recognise the distress it has caused them.” In addition, they mentioned that Homes England will cease collecting interest on Help to Buy loans for those affected by the situation.
