Laura Balmforth just wants the title to the land so a new house can be built. Photo / Supplied
Two years ago Laura Balmforth and her husband Henry agreed to buy a Wellington site for their first family home.
The parents of two children aged under 5 thought the settlement would be later that year.
But they’re now in the same position as they were in early 2021: landless.
Lot 23 at Three Skulls Rd, Tōtara Park in Upper Hutt is part of a land subdivision, yet to be finished or ready to build on.
Those involved in the scheme say delays partly due to Covid but also from bad weather and problems getting equipment and materials have caused issues, so sunset clauses in contracts have had to be extended.
That was not anticipated back in 2021 when properties like Balmforth’s were marketed, an engineer and real estate agent say.
Balmforth remains unimpressed with Simon Zhang’s Cannon Point Development and has little empathy for that position.
“Our dream is now turning into a nightmare. Our children are aged two and four, we have been living in my parents’ home for the last two years but our son is due to start school this year. I don’t know where he’ll go because we don’t know where we will live.”
So the family of four still don’t own their slice of Kiwi paradise.
“When we signed our contract in March 2021, the Cannon Point information package and the real estate agent said the titles were expected mid to late 2021.
“The latest update we have is that it’s expected at the end of October, though it’s been pushed out several times already so no guarantees it’s then,” Balmforth said on Tuesday.
A house was planned and a builder was arranged.
“But that’s fallen through because the builder has had to accept other work. We can’t do any building work or have any access until the title is issued. Materials and building costs and mortgage rates have significantly increased since we expected the title to be issued two years ago,” she said.
Last February, the new build coordinator at real estate agency Professional Redcoats in Lower Hutt - Nicole Foy - wrote to Balmforth and other buyers about holdups.
“You have probably been hearing that there are supply chain delays right across the building sector. Cannon Point is affected by this too. We want to thank you for your patience through what has been the most testing time purchasers and the construction industry have experienced in a generation,” Foy wrote to Cannon Point purchasers.
Balmforth said economic changes, rising building costs and spiralling mortgage interest rates now meant she and her husband were in a very different situation from what they expected in 2021.
“It’s disappointing. It looks as though our family dream home is now unachievable.”
They tried to sell the section but knew that would mean a big loss.
They listed it with Ray White, seeking offers over $410,000: “Secure one of the rare sections at Cannon Point in the popular Tōtara Park.”
The subdivision was carefully designed to include and preserve natural streams, forest regeneration, tracks and wetlands, the ad said.
“The current owners have had a change in circumstance, meaning lot 23 has become available for a lucky buyer. This 883sq m section provides an opportunity to build your dream home in picturesque surroundings.
“The design and build standards of the homes at Cannon Point will be protected with covenants on the titles. These are written to encourage a variety of architecturally designed homes,” Ray White’s ad said.
Balmforth said no one had offered to buy it.
“After five months on the market, the developer has now sent a cease and desist demand to our lawyer, threatening legal action,” she said.
Jamie Nunns of Morrison Kent wrote to Balmforth’s lawyer Paul Whitmarsh in January to complain.
“Our client is not at all pleased that your client has gone ahead and listed the section for sale in breach of the terms of the contract. Our client expects your client to settle in accordance with the terms of the contract,” Nunns told Whitmarsh.
“Our client would reluctantly consider permitting your client to market the section for sale prior to construction of a dwelling ... but only on the basis that it cannot be marketed/advertised for sale for less than the purchase price under the sale and purchase agreement dated March 22, 2021, and the listing must be changed by 12pm today, Monday, January 30, 2023, to reflect this.”
An update from the engineer Cam Rogers to Balmforth on January 18 cited slow progress on the development for several reasons:
“Adverse weather events causing damage to the site and weather delays, material shortages and supply chain issues and Covid-related illness on the part of the construction team and regulatory.”
Earthworks for one stage were complete and Rogers said it was expected titles would be received before the end of October.
Reticulated stormwater work was due to be completed by this month, as were sewer works. Services were laid and completed and lighting was due, followed by kerb, channel and roading, due to be done by June 23.
Balmforth said the sunset clause on their contract was extended to October this year because of weather issues and Covid.
Last November 15, Morrison Kent’s Lisa Kiteley advised Whitmarsh of that.
“The current sunset date in the agreement is July, 31, 2023,” she wrote.
“Our client wishes to provide the following update on the development. As you are no doubt aware, the weather last winter was incredibly wet (the wettest winter on record) which caused delays in particular as contractors were unable to work at certain times due to this adverse weather.”
The cause and effects of the Covid pandemic continue to have a negative effect beyond her client’s reasonable control including the effect of isolation rules, sickness, staff shortages and supply shortages, Kiteley wrote.
“The Covid pandemic has also caused administrative delays with a number of our client’s professional service providers including the local council,” she said.
So the sunset clause would be extended to October 31, Kiteley told Whitmarsh.
Questions were put to Morrison Kent for the developer but no answer received.
All that leaves Laura and Henry’s land out of their grasp until October when they hope to get the title.
'Apartments on the site and more than likely offices' – Andrew Moore, CMP Construction.