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Mortgage approved bank not releasing funds

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  • 15-10-2018 7:25pm
    #1
    ciaran1987
    Registered Users Posts: 5 ✭


    Hi all

    I have been in the market now for awhile looking for a suitable property for myself and my partner, recently we found the perfect house at a reasonable price, all was going well contracts signed on our behalf, waiting on confirm from the vendor to sign there side.

    Got a phone call from the solicitor stating that there was an outstanding contribution payment that needed to be paid to the city council so that it would be in compliance with the planning permission. ( that was the first issue)

    He went onto say that the bank where now investigation the actually estate the property was in. They the bank came back stating that they were not going to support our application due to the estate having no management company in place or no sinking fund.

    It gets better the city council couldn't tell me if the estate was going to be taken in charge due to it been unfinished, this was also highlight from the bank.

    Construction on the estate started in 2000 and still not completed due to developers going bankrupt during the recession. A few apartments are left derelict as you enter the estate which gives it a bad look, apart from that it is perfect.

    Has anyone ever came across a case like mine i would love your opinion on the situation


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    #2
    L1011
    Registered Users Posts: 68,798 ✭✭✭✭L1011


    august12 wrote: »
    What does that matter, person is looking for some help and if they start one hundred threads, so be it, I personally don't have any advice but it doesn't look promising if bank is unhappy with the estate.

    If they start one hundred threads, they'll be forum banned. I don't, however, see a previous thread from this user here anyway.

    I would expect that no bank will lend on that property; talk to your solicitor and be prepared to walk away.


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    #3
    Cuddlesworth
    Registered Users Posts: 13,994 ✭✭✭✭Cuddlesworth


    ciaran1987 wrote: »
    If you have any advice with the above I'd very much appreciate it.

    Start looking again. The bank is never going to give you a mortgage on that property. Its only ever going to be bought by a cash buyer, at a severely reduced rate, who goes against their solicitors instructions.


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    #4
    Fann Linn
    Registered Users Posts: 7,787 ✭✭✭Fann Linn


    ciaran1987 wrote: »
    Hi all

    I have been in the market now for awhile looking for a suitable property for myself and my partner, recently we found the perfect house at a reasonable price, all was going well contracts signed on our behalf, waiting on confirm from the vendor to sign there side.

    Got a phone call from the solicitor stating that there was an outstanding contribution payment that needed to be paid to the city council so that it would be in compliance with the planning permission. ( that was the first issue)

    He went onto say that the bank where now investigation the actually estate the property was in. They the bank came back stating that they were not going to support our application due to the estate having no management company in place or no sinking fund.

    It gets better the city council couldn't tell me if the estate was going to be taken in charge due to it been unfinished, this was also highlight from the bank.

    Construction on the estate started in 2000 and still not completed due to developers going bankrupt during the recession. A few apartments are left derelict as you enter the estate which gives it a bad look, apart from that it is perfect.

    Has anyone ever came across a case like mine i would love your opinion on the situation

    After the crash a lot of builders and developers went bang leaving partially built estates behind them. For a multitude of reasons many LAs failed to collect development levies or bonds from these same builders prior to commencement of construction.

    This has now resulted in a large number of estates requiring works so they can be completed. In some cases these jobs may just require the installation of footpaths, layers of tarmac on roadways or some other remedial works.

    In other estates however, the completion works maybe far more complex ie, badly designed water and wastewater systems, derelict or dangerous buildings or even works undertaken contrary to planning.

    Over the last number of years attempts have been made to rectify and complete these estates and central govt have provided funding to do so. However it will take time and I would hazard a guess that not all will be taken in charge for the forseeable future depending on circumstances.

    I would suggest that the OP attempts to see if any Resident Assoc exists first of all. Because a majority of owner/occupiers are required initially for the taking in charge process to begin.

    Assuming a Resident Assoc does exist, the OP should then make contact with all and sundry locally elected members, TDs, and Senators and request that they apply pressure on the relevant planning authority bearing in mind that most of the above will be trying to get other estates takien in charge also.

    From personal experience, it can be a long ardous battle. I knew the procedures and yet it took our estate over 8 years to be completed. And we just required man hole covers, public lighting, footpaths and roads to be finished off.

    Banks, insurance companies and Revenue themselves may also slow down the process depending on what and whom has the bond and how much the bond is for exactly.

    Be prepared for a long slog.


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    #5
    4ensic15
    Banned (with Prison Access) Posts: 4,691 ✭✭✭4ensic15


    The o/p is hardly going to do all that if she can't get a mortgage in the first place, is she?


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    #6
    dubrov
    Registered Users Posts: 3,571 ✭✭✭dubrov


    I'm surprised your solicitor is comfortable with the purchase.

    No management company and an unfinished estate sounds like a mess.

    Normally the developer would setup up the management company which may have happened but no one paid fees.

    Loads of red flags that you need to look into the cause of.


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    #7
    Fann Linn
    Registered Users Posts: 7,787 ✭✭✭Fann Linn


    4ensic15 wrote: »
    The o/p is hardly going to do all that if she can't get a mortgage in the first place, is she?

    Thats the process. What the op does is their own business. They sought info, I gave it.


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    #8
    ciaran1987
    Registered Users Posts: 5 ✭ciaran1987


    Thank you all for your comments. I just checked my emails and my solicitor has adviced me that we will be pulling out of the sale. The bank refused to release the funds and we are not cash buyers which he said will be the only way the house will be sold.

    Back to the drawing board i suppose so close but so far what's another few months renting.


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    #9
    Marcusm
    Registered Users Posts: 10,322 ✭✭✭✭Marcusm


    ciaran1987 wrote: »
    Thank you all for your comments. I just checked my emails and my solicitor has adviced me that we will be pulling out of the sale. The bank refused to release the funds and we are not cash buyers which he said will be the only way the house will be sold.

    Back to the drawing board i suppose so close but so far what's another few months renting.

    Is the solicitor local to the area? Did the estate agent not raise this? You should not have been allowed to get this point as it was a waste of money - an unfinished estate is to all intents and purposes not suitable for mortgage finance.


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    #10
    4ensic15
    Banned (with Prison Access) Posts: 4,691 ✭✭✭4ensic15


    Solicitors don't send emails at 10PM.


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    #11
    Dr_Kolossus
    Registered Users Posts: 112 ✭✭Dr_Kolossus


    4ensic15 wrote: »
    Solicitors don't send emails at 10PM.

    Op said they just checked. Not same thing.


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    #12
    JohnCleary
    Registered Users Posts: 10,210 ✭✭✭✭JohnCleary


    4ensic15 wrote: »
    Solicitors don't send emails at 10PM.

    What? A good solicitor will e-mail you ASAP, regardless of time. I've often gotten replies from my solicitor at 22:00 (approx), having sent e-mails at 19:00 earlier that day.

    And that's why I (and so many others) use that solicitor!


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    #13
    Mrs OBumble
    Registered Users Posts: 25,943 ✭✭✭✭Mrs OBumble


    OP get a different solicitor: your current one is usless if they let things get this far without warning you of the issues.


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    #14
    ciaran1987
    Registered Users Posts: 5 ✭ciaran1987


    As we have pull out of the sale of the house we have requested our full deposit back from the solicitor, how long does it take to be back in my account.

    My solicitor was good in this case, we where told when we put an offer on the house the estate will be taken over by the city council explained to us by the auctioneer saying that and i quote " the estate will be taken over by the city council when the estate is finished august of 2019" this was false as there is no documents stating that the derelict buildings will be finished by such agreed date or an agreement from the city council to take over the estate when completed.

    Lesson learned


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    #15
    4ensic15
    Banned (with Prison Access) Posts: 4,691 ✭✭✭4ensic15


    Dr_Kolossus wrote: »
    Op said they just checked. Not same thing.
    The o/p set up a boards.ie account and posted his tale of woe on the site before he checked his email? Pull the other one!


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    #16
    DubJJ
    Registered Users Posts: 84 ✭✭DubJJ


    4ensic15 wrote: »
    The o/p set up a boards.ie account and posted his tale of woe on the site before he checked his email? Pull the other one!

    What do you think it is, a conspiracy?


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    #17
    4ensic15
    Banned (with Prison Access) Posts: 4,691 ✭✭✭4ensic15


    DubJJ wrote: »
    What do you think it is, a conspiracy?

    I don't think we are being told the full facts.


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    #18
    Graham
    Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    4ensic15 wrote: »
    Solicitors don't send emails at 10PM.

    Mine does.


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    #19
    Graham
    Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    Mod Note

    4ensic15, quit the back seat moderation. If you have an issue with a post, report it.


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    #20
    ciaran1987
    Registered Users Posts: 5 ✭ciaran1987


    A tale of woe well aren't you very petty. And yes i didn't check my email before posting a genuine mistake. If you have an issue with the post, why comment looking for a reaction i suppose haha

    If you don't have any good to say don't say anything


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