Management company gone bust - buy or not?

adaczo

Hallo,we are in a proces of buying a house;we have all d documents ready and recieved d contracts yesterday:-)only one problem and we think its a big one..d management company in d estate is bust,d owners of d houses are collecting money for cutting d grass;would that be a problem when drowing down d mortgage?d solicitor is not happy about d situation,,hope anyone in a similar situation can give us advise

athtrasna

Run, don't walk, away from this as fast as you can go. It shows serious mismanagement and your bank is unlikely to release the mortgage for such a property.

L1011

It is unlikely the sale can actually go through - the dissolved management company will have owned the land, it'll now be held by the state. Unless the freeholds have been returned to the owners, which is possible but unlikely, the title of the house cannot be transferred and there's no hope that the bank will allow drawdown as said above.

Naux

MYOB wrote: »

It is unlikely the sale can actually go through - the dissolved management company will have owned the land, it'll now be held by the state. Unless the freeholds have been returned to the owners, which is possible but unlikely, the title of the house cannot be transferred and there's no hope that the bank will allow drawdown as said above.

It may have owned the land. There is every possibility the (bust I assume) development company still has the common areas in it's name.

Either way complete mess unfortunately, from what I have been told re a similar situation this will take years to sort out the land title etc.

As you say sale unlikely, I pity the people who own houses in this development.

The_Conductor

You'll not have access to a clean title for the property- therefore its highly unlikely a bank/lender will give you a mortgage to purchase the property. If you're a cash buyer- I'd still advise you not to do it- as you'll have massive issues if you ever try to sell the property. Run. Run very fast.......

_Kaiser_

The_Conductor wrote: »

You'll not have access to a clean title for the property- therefore its highly unlikely a bank/lender will give you a mortgage to purchase the property. If you're a cash buyer- I'd still advise you not to do it- as you'll have massive issues if you ever try to sell the property. Run. Run very fast.......

I agree, I'd run away from this one myself.

BUT as usual in Ireland it may not be that clear-cut. Look at that Stepaside thread where there have been ongoing questions about who owns the land and yet people seem to be getting mortgages and moving in regardless.

It really does seem like it's all kicking off again

Victor

adaczo wrote: »

Hallo,we are in a proces of buying a house;we have all d documents ready and recieved d contracts yesterday:-)only one problem and we think its a big one..d management company in d estate is bust,d owners of d houses are collecting money for cutting d grass;would that be a problem when drowing down d mortgage?d solicitor is not happy about d situation,,hope anyone in a similar situation can give us advise

I realise that some people have literacy and other problems, but can I ask you to use full words?

Thank you

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