Hi everyone,
In the continuing saga of pain we are experiencing with the South Bank deal, I have received an update from TGC concerning a change to the purchase price.
Here is the info I received from TGC:
Dear Mr Glaze,
I am writing in relation to your purchase of property in the South Bank development in Krakow.
We have been advised by the developer that the construction works will be completed soon. The apartments have been re-measured and final payments have been adjusted according to the changes in the apartments' area. Please take the corrected price into consideration, when you will be making the final payments.
Part of Property Final Area Change in Area Change in Price (PLN) Amount to be paid (PLN)
Balcony 5.98 1.15 615.25
Apartment 52.78 0.39 2,548.11 20,417.55
Parking Space 11.50 0 0 0
Storage Space 1.69 0.02 10.70 45.21
I am writing in relation to your purchase of property in the South Bank development in Krakow.
We have been advised by the developer that the construction works will be completed soon. The apartments have been re-measured and final payments have been adjusted according to the changes in the apartments' area. Please take the corrected price into consideration, when you will be making the final payments.
Part of Property Final Area Change in Area Change in Price (PLN) Amount to be paid (PLN)
Balcony 5.98 1.15 615.25
Apartment 52.78 0.39 2,548.11 20,417.55
Parking Space 11.50 0 0 0
Storage Space 1.69 0.02 10.70 45.21
The result is a total increase of 3,147.06 PLN, or about 0.9% above the original price.
I'm fairly certain I have read about this as a possibility in some of the documentation, and probably in my PPC as well. So I can't say it is a big suprise, and I imagine it could have been much worse. In the end, I suppose if the extra cost also translates into extra value, it's not such a bad thing.
But apparently, even though everyone supposedly knows that this is a common occurence in Poland, my mortgage provider does not - according to my mortgage broker (Open Finance), I will have to pay an additional cost of 3,128.85 - which is 99% of that cost increase - out of my own pocket. The mortgage apparently does not cover these price increases. And at current exchange rates, that is going to cost me an additional £700 - not a trivial amount. Also, why only 99% and not 100% of the cost? I don't quite understand this, but I guess it is some tricky "mortgage math".
Is that right? Does anyone else have similar experience to compare? Adding almost 1% to my original purchase cost is once again driving my total investment cost higher, and my profit margins lower on this deal.
I would appreciate any advice or similar experience anyone has to share.
ES