Buying house - Management company Woes - What's normal?

Darkslcie

Hi all,

I hope you don't mind if I get some outside perspective. It can be tricky to look at the situation as a whole when your in the middle of it.

So myself and my wife managed to find a house we like after a few months of searching. After a few more weeks we went sale agreed.

That was 3 months ago.

We seem to have gotten over most of the bumps in the road - Mortgage approved, developer never paid Stamp duty (now paid and fix), etc...

But the latest one is a bit tricky, Back when the estate was established the management company was set up and everyone paid X cash to them

Sounded good, but the company was only a company in name and not action, they didn't actually do anything to maintain the estate.

So the residents formed a comity do deal with this and collected voluntary contributions to aid in this.

All was fine, but wouldn't have been above board enough for a bank to issue a mortgage.

So in 2011, there was a the MUD act (Multi Unit Development) issued into law. And recently the management company had issued an application into the co co to hand over ownership. From what I hear they sent back a snag list.

From talking to the resistance comity, once the snag list is completed they plan to form a new body to take over the estate maintenance.

So I'm trying to get a letter from the co co to say that the application is in progress and hopefully this is enough for the banks.


But again, Am I leading with my heart or my head - I just cant tell....
Am I just following a road over a hill and not knowing if there is an end in sight or is this normal?

Sincerly
First time buyer
DS

Valentine1

What does your solicitor think of all this? an estate without a management Company and that isn't in Charge of the Co. Co. is sort of in limbo. Getting the mortgage out of the bank may be the hardest part.

Darkslcie

my solicitor seems happy enough to tip away and thinks that once we get a letter from the co co that the application is in process, it will be enough to convince the banks.

In writing, the estate does have a management company, its just that they don't do anything - they don't even collect fee any more.
They still exist and have not gone under.

But yes, limbo would accurately describe the situation.
With any luck I can get a letter to say that something is happening.

It's Galway Co Co, by the way that's the only non generic I'll give
Purely because some here might work there and might be able to help.

DS

jbyrne88

Hi,

Myself and my girlfriend are going through the same situation now so any advise would be helpful? Did your issue get resolved?

Basically the managent company are still in business but have never collected fees (that we know of ~ solicitor is looking into) or maintained the estate. They are apparently in "talks" with the co co now for the co co to take over.

Small estate of around 20 houses with nearly all of them finished and there is no green area. None of the street lights work.

Any advice appreciated, thanks.

Woodville56

Would also be interested to know how you're fairing out with the Estate Management issue Darkslcie- we're heading for a similar type scenario with a house we are buying ( also in Co Galway !)
Any advice or update would be helpful. PM if you wish
Thanks !

Darkslcie

of course guys, all was resolved,

we where lucky, Once the bank got the letter to state the management company was "in process" of handing over to the Galway County Council they had no issue in giving us the ok to buy the house. was very touch and go now but I'm please to say we own our own place now.

My solicitor sent documents to the bank with these details (I never saw them), then once I found out who was looking after it I followed up every 2 to 3 days to get an update from the bank. (AIB in this case)

After that, the bank just requested the rest of the documentation for completing the purchase.

Took some time, but the hardest part was getting a letter from the co co to give to the owners solicitor to state the co co was in process of taking over.

Naux

Darkslcie wrote: »

of course guys, all was resolved,

we where lucky, Once the bank got the letter to state the management company was "in process" of handing over to the Galway County Council they had no issue in giving us the ok to buy the house. was very touch and go now but I'm please to say we own our own place now.

My solicitor sent documents to the bank with these details (I never saw them), then once I found out who was looking after it I followed up every 2 to 3 days to get an update from the bank. (AIB in this case)

After that, the bank just requested the rest of the documentation for completing the purchase.

Took some time, but the hardest part was getting a letter from the co co to give to the owners solicitor to state the co co was in process of taking over.

Has the Co Co actually taken over the estate?? I know you got a letter for the bank but did they actually do it?

Darkslcie

not yet, these things can take time, there was a snag list issued to the management company to complete. I don't know the status of it.

Naux

Darkslcie wrote: »

not yet, these things can take time, there was a snag list issued to the management company to complete. I don't know the status of it.

Had similar experience with same council and were told off the record by council employee that they had absolutely no intention of taking our estate in charge irrespective of completed snag list. Reason given was they had no funding to do it. Hope ye fare better but I'd doubt it.

They are just kicking the ball down the road with the "snag list" methinks.

We have to pay LPT and a management company charge each year to keep services eg lighting & sewage treatment going in our estate. Paying on the double:mad:

athtrasna

Naux wrote: »

We have to pay LPT and a management company charge each year to keep services eg lighting & sewage treatment going in our estate. Paying on the double:mad:

As are most of us in managed estates. It's like paying usc and health insurance, paying twice for crappy services