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Can you get a mortgage to buy in an unfinished housing estate

  • 18-09-2012 10:47am
    #1
    user37
    Registered Users, Registered Users 2 Posts: 128 ✭✭


    Hi,

    I'm interested in buying a house in an unfinished estate but i was told by the estate agent that the bank wont give out mortgages for this.
    Is this true??


Comments

  • #2
    ABajaninCork
    Closed Accounts Posts: 8,411 ✭✭✭ABajaninCork


    I'm not being funny, but why would you buy in an unfinished estate? Is there any chance it'll be finished and you can get all the amenities promised?

    I don't know if mortgages can be granted in those circumstances. Best bet I would imagine is to run it past the bank.


  • #3
    L1011
    Registered Users, Registered Users 2 Posts: 71,184 ✭✭✭✭L1011


    ABajaninCork wrote: »
    I'm not being funny, but why would you buy in an unfinished estate? Is there any chance it'll be finished and you can get all the amenities promised?

    Was pretty much standard in the 1980s if you wanted a new house to tolerate the estate being unfinished/eternally under construction... and its possibly getting that way now, at least in certain areas, where there aren't any new houses available NOT in an unfinished estates.

    I was told by the advisor I've been dealing with in my branch that they wouldn't - bank being BOI - so I didn't pursue it any further. I was also told they'd probably reject my application (for an older property) and they didn't, so it may be worth a shot.


  • #4
    ABajaninCork
    Closed Accounts Posts: 8,411 ✭✭✭ABajaninCork


    MYOB wrote: »
    Was pretty much standard in the 1980s if you wanted a new house to tolerate the estate being unfinished/eternally under construction... and its possibly getting that way now, at least in certain areas, where there aren't any new houses available NOT in an unfinished estates.

    I was told by the advisor I've been dealing with in my branch that they wouldn't - bank being BOI - so I didn't pursue it any further. I was also told they'd probably reject my application (for an older property) and they didn't, so it may be worth a shot.

    It might've been standard 30 odd years ago, but given the economic situation now, I wouldn't have thought it would make sense for the bank to lend on a house on an unfinished estate. There's no guarantee it'll be finished, and therefore if unfinished it's unlikely the owners will be able to re-sell and therefore safeguarding their investment and the bank's outlay. But - I am no expert on this, just thinking logically.

    Equally, I don't understand why the bank won't lend on an older house either! I would've thought it would be a more attractive proposition, assuming the house has been bought/sold on several occasions.

    Maybe the banks won't lend and are finding excuses, period!!


  • #5
    riclad
    Registered Users, Registered Users 2 Posts: 8,184 ✭✭✭riclad


    Why would you buy a house there, empty houses are prone to vandalism, health hazard ,in a few years time your house could be worth
    nothing.
    i know some estates are 90 per cent finished and some councils ,
    have plans to finish them, so you,d have to give alot more info on the estate.
    AT the moment most areas have plenty of houses for sale .
    the bank would want some gaurantee ,the estate will be finished ,is it owned by nama, is the builder still in business.
    estates are unfinished ,cos prices went down,demand slowed, and people
    think why would i buy a house in area x , no jobs there ,no point commuting from there.
    Some estates are under namas control ,so they seem to think we will
    have a miracle financial recovery ,and they ,ll be able to sell them off to somebody at a reasonable price.
    I dont blame the banks for being choosy are careful
    re unfinished estates and loans.
    in the 1980s ,we did not have large estates ,houses being built in small towns
    where there was little hope of people buying them,
    and houses were not being bought for 150k.
    Houses were mainly built in urban areas with a growing population .
    there was not rampant speculation in the 80s.


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