Homebuyers lose thousands when property investment flops
- Enrico and Luciana Marini invested in an off-plan flat in Leeds in 2021 based on misguidance from agents and lawyers.
- After facing significant building delays, their mortgage applications were rejected due to property devaluation.
- The couple represents many buyers who claim they would have acted differently had they received proper financial advice.
In the United Kingdom, a couple lost their savings after investing in an off-plan flat in Leeds in 2021. Enrico and Luciana Marini, who were first-time buyers and relatively new to the country, were encouraged by their agents and lawyers to reserve the property without securing a mortgage offer. They were told not to worry about financing until the flat was close to completion. This misleading guidance resulted in substantial financial loss for the couple as they encountered building delays and were later shocked to discover that mortgage applications for the property were being rejected. The property was devalued due to various factors, including its location and a high number of buy-to-let investments in the area. The Marinis expressed feelings of deep sadness and stress over their lost funds, especially as they had hoped to invest in their family's future. Other buyers in similar situations reported that they too would have sought mortgage offers had they received proper advice before exchanging contracts, emphasizing the lack of guidance from agents and legal advisors. Amid mounting frustrations, North Property Group stated that buyers are usually informed of a standard six-month validity for mortgage offers and expressed sympathy for those unable to complete their purchases. Mundy’s Specialist Property Lawyers defended their advice given to buyers, denying any claims of inadequate legal counsel or failure to explain risks related to property acquisition.