Banker forfeits £500,000 in property deal

A CITY financier has lost half a million pounds after having to forfeit his deposit on a £3.25million property.

The banker, who did not want to be identified but is managing director of a City investment firm, signed a contract to buy the north London house earlier this year. He pulled out of the exchange when he failed to receive an expected bonus and saw his stock options fall by 70 per cent.

He said: "There is no way I can complete. I did not realise the market would collapse when I made the exchange."

He and his wife, who worked at the same bank but lost her job, may be sued for the cost of remarketing the house because failing to complete after exchange is a breach of contract.

Another buyer, in Chelsea, is believed to have lost a £1million deposit when he failed to complete on a £12.75m home.

Richard Gutteridge, partner at Knight Frank, said: "Six months ago this would have been unheard of. Deals have fallen through more and more. If someone's lost their job, or their situation has changed, they have to take a bitter decision on whether they should go ahead."