Buy house with sewage issue

Black_Strmo

Hi first ever post just wanting to find out if anyone has has a similar experiance orthe like. Firstly my husband and i have been looking at houses we found one that we both really like and in our price range only problem is it it still on a tank sewage system (would need to be hooked up to the mains) the realitor suggests around 20k to do everything i thought this was rather high but any way we have enough to cover the diposit. Would the banks finance a house that needs this work done or led a little more to cover the cost? Or if we could get the money that is needed extra to cover the cost would the bank lend to us based on we are going to get it fixed and then the property value would be much higher then currently selling for. The realitor said he thinks the bank wont finance a house needing this type of work done and is more suited to a cash buyer. Im at a loss will be speaking with the bank but just wanted to see what people thought? Thanks

the_pen_turner

what is wrong with the septic tank.
why does it need to be connected to the main sewer

I don't see how it would cost 20k to get a sewer connection. .
depending on the heoght difference between the house and road you might not even get enough of a fall into the sewer.

Water John

I'd be thinking the question, does the EA not want you to buy and why?
Has he a friend in the building upgrade business with cash?
I have come across this while buying last year.

Black_Strmo

thanks yeah though it was a little strange myself.

JustAThought

Black_Strmo wrote: »

thanks yeah though it was a little strange myself.

EA are typically looking out for the best deal for themselves & their client - they get a % of the sale so will always want go push it up. A buyer without a 'chain' - a house to sell to buy this one, or with cash is always simpler for them. Once you buy would you be able to raise a seperate loan from a different organisation - a credit union or other bank ?. Perhaps the guy selling knows something you dont - Your loaning bank may not loan on a house that needs sewage upgrades - 'uninhabitable'? Or it might be a bigger problem - I mean, who continues to live in a house with a sewage problem & dosn't fix it????
There was a big debate on new EU requirements for septic tanks a few years back - half the country was up in arms over it; apparently they were very punitive, expensive & restrictive. Might be worth googling in the farming & forrestry section on boards or elsewhere - everyone was going on about it st the time.

Black_Strmo

Thanks Justathought i think it is hooked up to a tank system now so not 'uninhabitable' its just that it needs to be hooked up to the mains, I found the same house forsale for 95k more a few years ago with no mention of the sewage system on that add.

Black_Strmo

This is the email i recieved from the realitor

"The property needs to be connected to the mains sewerage system as at present the sewerage from the property is going into a septic tank which is located in a neighbouring lands which are not included in the sale - planning permission will be required to connect the property to the mains sewers and a pump system will have to be installed/ built to facilitate this - it is estimated that between constructing and connecting the sewerage to the property and applying for planning permission for same it will cost in the region of 20,000
The guide price on the house reflects this issue etc
It is our opinion that the property isn't mortgageable in its current state (ie because of the sewerage issue) and as such will be only suitable to a cash buyer unfortunately - it is being sold as is by a financial institution."

TeaBagMania

Think there was another post here about a similar issue. Two houses sharing the same septic system, caused issues when one party wanted to sell.

Get an independent contractor to come out and take a look at the situation and advise if connecting to the mains or installing your own septic system and which is the best cost option

HelgaWard

All septic tanks need to be registered, you should check if the property you are interested in is:

http://www.epa.ie/water/wastewater/legislation/

MouseTail

I agree with the EA, can't see how this is mortgageable. Either the vendor resolves the issue, or its only suitable for cash buyers.

The_Conductor

Ahh- so the septic tank is on property which belongs to a different property altogether- and is not included in the sale........

Yep- it could cost you a not insignificant sum to dig up the place and get a connection to a public mains. 20k? Perhaps- it really depends on the work that needs doing.

Water John

Yes, that makes sense now. Usually there would be a wayleave in such a situation. It probably has adverse rights too, can't see how the other property owner could stop it.
But the reality of how is spelt out in the email. If you could raise finance it could be a good buy.

Black_Strmo

thanks everyone, would you think if we had the money to cover the septic stuff and the deposit the bank would go for it? Thhis house really is my dream house for a great price willing to jump through hoops to gets.

Water John

It's the legal advisors to the bank will be the problem.
What about your loan/mortgage being from the bank that is selling it?

They would be diff sections.
I have my doubts and don't like being negative.
Any other asset that could cover the loan value?

Black_Strmo

no nothing of substance really only a cheap car and our savings. Is there a way to find out which bank has it or can i just ask the realitor?

loyatemu

I know of someone in a similar situation and they received the same advice. Either the vendor fixes it, or the bank won't lend.

Angry bird

Try checking it out at the local council planning section and seek their advise. Really the person selling should be sorting it out and if they won't then price reduction.

notharrypotter

Angry bird wrote: »

Try checking it out at the local council planning section and seek their advise. Really the person selling should be sorting it out and if they won't then price reduction.

From post 6 property previously on sale at 95K so some element of price reduction has occurred.

Based on the information available the plot of land being sold with the house is insufficient to have a septic tank. A mains connection is possible but technical/distance issues will have a cost implication.

The OP needs to speak to an engineer or similar who will give them an indication of what is necessary to connect with the mains and a rough cost for this.
Then if this is beyond their limit regrettably they must look elsewhere.

Angry bird

Other question is will a connection to public sewer be entertained? Also where there's one problem there's usually another.

The_Conductor

I made an offer on a similar type property back at the height of the boom (2006) down in Portlaoise. It too, was my dream home. In my case- the bank were willing to loan me the money- including the price of rectifying a non-compliant sewage tank.

I was assured that the issue was very fixable- and on that basis- I made an offer to the seller- subject to them rectifying the issue.

The very fixable issue- still isn't resolved 11 years later- and the 'luxury 4 bedroomed home set in grounds with mature trees' on the Mountrath road- is vacant and has been for the last decade.

If you are serious about buying this house- have a sibling- or a colleague- who has no emotional attachment to the property- survey the property with a good surveyor- and get an honest and open opinion as to what the issue actually is- whether its even possible to rectify it- and if so- what it might cost.

This may involve talking to the neighbours- and even the postman- who will be familiar with the area and able (in the case of the postman) to give you an unbiased narrative of the recent history of the property.

I dodged a bullet- I'm now in a townhouse with no garden (but 10 minutes from work and close to all manner of facilities and amenities) and have young children- but I could just as easily be living in a poor location without toilets that flush, no facilities or amenities- and a 2 hour commute to and from work.

You need to nab a friend, colleague, sibling- someone you trust but who has no emotional attachment to the property- and get them involved in the process- and *heed* their advice.

Just because you have fallen in love with you 'dream home' doesn't mean it won't turn into a nightmare- you need to have your eyes wide open on this- and at the moment- you patently don't.

Teyla Emmagan

Is there not enough room on the property you are buying to dig your own septic tank? And forget about connection to the mains.

Black_Strmo

It's on a 1/4 acre lot it's a bank sell so seller won't fix. Yeah I might just see about getting it looked at by professional and see how it goes thanks for all the info everyone. The toilets work it's just that it's hooked up to next doors septic

The_Conductor

Black_Strmo wrote: »

The toilets work it's just that it's hooked up to next doors septic

They won't work for very long- if the next door neighbour cuts the pipe at the property boundary- which is their prerogative.

This issue is a pig-in-a-poke- which you simply don't want to acknowledge.

It is a highly irregular situation- and if you're seeking a mortgage- probably a deal breaker if the lender finds out (I'm guesing they haven't been told?)

You *need* to get proper advice on this- it beggars belief that you haven't done so yet.

Marcusm

Black_Strmo wrote: »

It's on a 1/4 acre lot it's a bank sell so seller won't fix. Yeah I might just see about getting it looked at by professional and see how it goes thanks for all the info everyone. The toilets work it's just that it's hooked up to next doors septic

It's a bank sale of a repossessed property hooked up to a neighbours septic tank; did that neighbour or a member of their family construct the house only to have it repossessed? This is one of the more common reasons for a shared septic tank, family ownership.

the_pen_turner

could you buy another 1/4 acre and put the tank on that

Pro Hoc Vice

The_Conductor wrote: »

I made an offer on a similar type property back at the height of the boom (2006) down in Portlaoise. It too, was my dream home. In my case- the bank were willing to loan me the money- including the price of rectifying a non-compliant sewage tank.

I was assured that the issue was very fixable- and on that basis- I made an offer to the seller- subject to them rectifying the issue.

The very fixable issue- still isn't resolved 11 years later- and the 'luxury 4 bedroomed home set in grounds with mature trees' on the Mountrath road- is vacant and has been for the last decade.

If you are serious about buying this house- have a sibling- or a colleague- who has no emotional attachment to the property- survey the property with a good surveyor- and get an honest and open opinion as to what the issue actually is- whether its even possible to rectify it- and if so- what it might cost.

This may involve talking to the neighbours- and even the postman- who will be familiar with the area and able (in the case of the postman) to give you an unbiased narrative of the recent history of the property.

I dodged a bullet- I'm now in a townhouse with no garden (but 10 minutes from work and close to all manner of facilities and amenities) and have young children- but I could just as easily be living in a poor location without toilets that flush, no facilities or amenities- and a 2 hour commute to and from work.

You need to nab a friend, colleague, sibling- someone you trust but who has no emotional attachment to the property- and get them involved in the process- and *heed* their advice.

Just because you have fallen in love with you 'dream home' doesn't mean it won't turn into a nightmare- you need to have your eyes wide open on this- and at the moment- you patently don't.

Any person buying a house, should print off your post, laminate it and take it out and read it every time they find their "Dream House"

Pro Hoc Vice

Black_Strmo wrote: »

It's on a 1/4 acre lot it's a bank sell so seller won't fix. Yeah I might just see about getting it looked at by professional and see how it goes thanks for all the info everyone. The toilets work it's just that it's hooked up to next doors septic

Walk away it's a mess, a person should only buy a house with their head not emotions.

JustAThought

Pro Hoc Vice wrote: »

Walk away it's a mess, a person should only buy a house with their head not emotions.

When our estate was built one of the major greviences in the planning objections by the existing neighbours was that after 30 YEARS the council had still not linked the existing houses to mains sewage & they still had to pay to pump their sewage away every 6 months. Ten years after our houses were built & mains connected theirs are still not.

If the neighbour sells, falls out with you, marries someone hardheaded or takes the notion to do so, with this arrangement & the tank on their land they can effectively at any time they choise make your life a living nightmare with this arrangement - or worse; choose to charge you rent or a license to use their tank, refuse to pay the sewage & service charges themselves unless you pay or dig up & disconnect your connection rendering your house uninhabitable. Sometimes a dream is not a dream when you scratch the surface. This may seem perfect in almost every way but the toilet is a basic that you have to have & if this is such a big problem before you even buy imagine what it could escalate into cost wise afterwards.

There is obviously reasons why the tank was built on the neighbours - you say space, maybe there are also other factors. I have a beautiful garden filled with trees but If I dig 4 foot down it is solid rock - no survey will tell you this; and watching enough of the eye watering escallating costs on the RTE room to improve show will show how quickly surveyers say oh I could't check that because I didn't do an underground drainage survey/ couldn't actually see what was happening with the pipes/ assumed it was 'normal'/ could't have guessed it was so badly done in the first place or non-compliant/ have no permission from the neighbours etc .

It sounds like there is good reason this house is for sale at this price & the balance might ruin you.