Family out of pocket as developer goes bust

Mar 28 2008 by Sam Wood, The Journal

A NORTH EAST family has been left thousand of pounds out of pocket after a building company collapsed.

Anna Bogie, 34, and her husband Jim McLellan, a vet, say they have been left ‘reeling’ by the demise of Wilcomm [COR] Homes, which went into administration at the start of March with the loss of 26 jobs.

The couple, who have a 15-month-old daughter, live on Rockwood Hill Road in Greenside, Gateshead, and had entered into a part exchange deal with Wilcomm homes in November last year to move to the new Ryton Gate development on the edge of Blaydon.

They had already spent thousands of pounds on a deposit and furnishings for the house but a series of complications delayed the move before Wilcomm Homes was taken into administration by Deloitte.

Mrs Bogie told the Journal: “We had just had our first child and wanted to have more.

“We signed a contract with Wilcomm Homes to part exchange our home for a new, bigger property in their Ryton Gate development. The part exchange meant we would take less than the value of our property but made the moving process easier as we had a young daughter to consider.

“We paid a deposit of £1,000 which we were advised was non-returnable if we pulled out of the contract.

“We were due to exchange contracts and complete on January 29 this year, however it turned out that their land registry documentation was not correct for the whole site so in effect they had nothing to sell us and on the day of completion the plug was pulled.

“We had agreed a two week overlap so carpets and wardrobes could be fitted in the new house so these were all paid for the week before the move was due.

“It took weeks for this to be sorted out and they started pushing us to complete on February 29 but there was an issue with the environmental factors on the land and the snagging had not been completed.

“We then found out that the company went into administration on March 3.”

Sunderland-based Wilcomm is believed to have suffered from a lack of orders for its homes and so could not pay its bills or service its debts.

The administrators Deloitte are looking at selling off properties Wilcomm was building at Ryton, Seghill in Northumberland and Washington.

The couple say they have spoken to Deloitte and been told that it is no longer prepared to take their house in part exchange.

They say they are thousands of pounds out of pocket, with land searches, solicitors fees and that their house has been devalued.

Mrs Bogie said: “I am sure by the end of all this we will be looking at being about £20,000 out of pocket, no new house, months of time and effort wasted and no further forward with a house still to sell. We have been left reeling by the whole thing.

“We are resigned to not getting any of our money back as we will be the last on the list.”

A spokesman for Deloitte confirmed that Wilcomm Homes entered administration in March and said that acquiring another property through part exchange would not be in the best interests of the creditors.