Jasmine Janda, 38, believed she had secured a lucrative investment when she agreed to purchase a two-bedroom apartment in the Westgate House development in Ealing, west London, in August 2019. The property, which was being sold off-plan, was advertised with numerous amenities, including a 24-hour concierge, gym, cinema room, and convenient links to central London, where Janda worked in banking. She negotiated a £25,000 discount, agreeing to a purchase price of £540,000.
Janda paid a 20 percent deposit, totaling £108,000, for the apartment, which was expected to be completed in 2021. She paid a £2,000 reservation fee in December 2019, exchanging contracts and paying the first £52,000 installment of her deposit. A year later, she paid the remaining £54,000. The off-plan purchase meant she was entering a legally binding agreement before the property was fully constructed.
However, as the property neared completion in spring 2021, Janda discovered that no lender would offer her a mortgage. She was rejected by multiple banks and building societies, including NatWest, Halifax, Accord, and Hinckley and Rugby Building Society. Surveyors deemed the property an 'unsuitable security' due to its location near the busy Hanger Lane gyratory system and other major roads and rail lines. Concerns were also raised about limited natural light and potential future resale values, given it was a conversion from office space to residential units.
Janda reported being encouraged by a mortgage broker recommended by the developer, Galliard Homes, to consider expensive specialist mortgage products. These products reportedly required a larger deposit and carried higher interest rates, with no guarantee of passing valuation. Unable to secure financing and unwilling to pursue these options, Janda could not complete the purchase. Galliard Homes subsequently rescinded the contract and retained her entire £108,000 deposit.
Nicholas Mendes, mortgage technical manager at John Charcol, explained that the risk of a property being unmortgageable is higher with off-plan purchases, especially those involving office-to-residential conversions. He noted that factors like noise, light, and comparable resale evidence heavily influence a valuer's judgment. Mendes also highlighted the potential conflict of interest when relying on brokers and solicitors recommended by the developer, emphasizing the importance of independent advice.
Janda stated she was initially told she could not appoint her own solicitor, as Galliard Homes only worked with a list of approved legal professionals. Olivia Egdell-Page, a partner at Joseph A Jones & Co, clarified that buyers are not obligated to use a developer's recommended solicitor and are entitled to choose their own for tailored advice.
Following the failed purchase, Jasmine Janda has been trying to recover her deposit for five years, incurring an additional £9,154 in legal fees without success. Her flat was eventually sold in June 2025 for £295,412, a 45 percent reduction from her original agreed price. A spokesperson for Galliard Homes expressed sympathy but rejected claims of knowingly selling an unmortgageable property, attributing the issues to a changed lending environment post-2019, including the impacts of Covid-19 and Brexit-related uncertainty.
Buying new-build properties off-plan carries inherent risks. These can include mortgage offers expiring if completion is delayed, the developer going bankrupt, or property values falling during the construction period. Experts advise buyers to ensure their deposit is protected, to consult independent mortgage brokers before paying a deposit, and to scrutinize property details and contracts carefully.