At this stage in time, your solicitor makes absolute sense.
But please see what I say at the very end because there is a costs issue/risk
Whether the builder is in breach of contract would depend on what provision there was in the contract documentation with regard to a completion date. There should really be a long stop provision whereby you are not hanging on for ever waiting to complete because of that happens, then mortgage offers expire and people’s financial circumstances change.
In the absence of any completion date provision in the contract documentation, then the time between exchange and completion must be “reasonable” and I think that “reasonable” is certainly approaching after what is almost 2 years and may be nearer to 3. Indeed, it may have been and gone, as indeed, 2013 has almost. It really comes down to when the projected completion date was supposed to be in the contract. If the company is not trading because it has gone into liquidation, you are left with dealing with the liquidator. If the company has not gone into liquidation then you are faced with suing the company. If the court then he subsequently goes into liquidation, the litigation would be dealt with by the liquidator. But you are then an unsecured creditor and the chances are that you will see little, if any, of your money.
It is small claims court matter and therefore even if this goes to court and you lose for any reason, you will not have to pay the other side’s legal costs. However, do bear in mind that even if you win, you will not get your solicitor’s costs back. And if your solicitor is charging, including VAT, £200 per hour, that can be a massive chunk of whatever you recover.
Indeed, if you do not recover anything, you may end up with a legal bill and no money, so this will cost you even more. Something you need to be acutely aware of and I would ask the Solicitor to confirm at this early stage (he should do anyway. But ask for confirmation of who will pay his costs either, if you lose in court or if the company goes into liquidation.
There is a substantial costs risk there which you need to be aware of.
Does that answer the question? Can I answer any further specific points?