Unfinished Housing Estate

starzy

I would like to know if anyone else is in my position - my partner and I purchased an apartment off the plans and it turns out we were the only people who purchased.
Now living in an unfinished apartment block (the only inhabitants) which has no block policy insurance whatsover.

The builder hasn't the money to insure it as he is in the process of becoming bankrupt as far as I know, and he told me he has asked the bank to insure it. I contacted the bank and they've told me it's not their responsibility.

We're on a temporary water scheme (a water pipe lying over rubble overground!) which freezes every winter. And the building is now becoming derelict. We are at our wits end as this is coming into our 6th winter in this building, and if pipes freeze/burst or anything happens to our apartment we have no cover. Have local TD coming to apt this week.

Anyone else in this position?

Lantus

This is a terrible situation and I really feel for you.

Unless this development is finished you have a property with zero value. As it stands if the property was to suffer a loss then you would have nothing except a mortgage. If the builder is gone then there is really no money to finish this.

In this case the bank should really write off the mortgage as its pointless you paying for rubbish. You should not be shackled to a death sentence. You get but one life and money is just a made up thing that we like to tout as 'real' and important.

I would get immediate legal advice as to your options. Start dealing with the bank ASAP but you could have grounds to say the property is uninhabitable due to no guaranteed water supply and unsafe due to no insurance.

Even if the bank repossessed your property they could never sell it. Its as worthless to them as it is to you.

If it was me I'd be outlining everything to the bank in writing and advising them that the mortgage needs to be written off. What would be the point in paying it anyway unless the development was finished? If your in Dublin there may be a reasonable/slim chance this might happen but if your in the 200mile 2007 commuter belt less likely for the foreseeable future.

Don't go to zero. pay them €10 a month that way your 'making an effort'. I'd start looking for alternative accommodation though. Sounds like an awful situation.

starzy

Hi Lantus,

Thanks for your reply. I have been writing and making a case to the bank for the last year, however they will not budge on the mortage. We do have a split mortgage deal with them and they did write off some of the debt, so that is a start.

But we are both in our late 40s/early 50s and just want to try and hang on to our home - we are optimistic that someone will buy up the site. It is a small site and very pretty - it is in a village in Co. Louth . Our home is lovely inside once you step in our own door, and we feel we would rather be paying dead money towards this than standing cap-in-hand on the road looking to pay dead money in rent to someone who can increase rent at any time, and we'll never be able to settle properly. I have spoken to a financial advisor who is trying to get some interest in purchasing the site.

As I said in my last email, our local TD is coming this week to see if he can help us. Would love to go the legal route but at the end of the day we couldn't afford those fees.

starzy

Actually, the reason why the bank are not repossessing the property is becuase they don't want the responsibility of looking after the property.

D3PO

awful situation. Im very much of the opinion that you have a debt you pay the debt, but this is one of the rare occasions id agree with Lantus and say defaulting here seems the best and only play.

a half built estate going to rack and ruin in a villege in Louth wont be bought by anybody anytime soon. Paying a mortgage each month in what sounds like a inhabitable property with no value at all just makes no sense.

Thargor

+1 for the pay a tenner a month and save the rest just to see what happens plan. If it all goes to sh1t at least you'll have a nice nest egg saved up.

Lantus

I would still cut your mortgage payments.

Part of the mortgage agreement would be that the building has valid insurance on it all times. This is not the case yet see how easily the bank are willing to ignore this fact as long as you keep paying them free money.

IF that property were to burn down tomorrow or be severely damaged in a storm you have nothing and the bank would still expect you to pay top dollar for whatever was left. Bottom line is that they don't really care about you. Your just numbers on a PC that affect their profit and loss account. Start thinking about yourself and squirrel as much money away in separate accounts as possible. You may need that money in a years time for emergency shelter or to rent. You think the bank will help you out if it all goes tits up?

Don't give into fear. Losing your home is an incredibly long and protracted process which takes years of the bank working to achieve this and years of you failing to do anything or engage. Keep writing every week to them. reduce your mortgage payments to a reasonable level. I know of one man who owns a house in a finished estate who paid €50 a month for three years and stopped paying 2 years ago. The bank have not made a single move except a few letters threatening 'action'

You've engaged but you need to take the fight to the enemy if your going to have any sort of life as you get older. I also know of people who have had 70% of all the mortgages wiped off on all their entire investment portfolio. It happens and is happening. Don't be too nice.

Your in a system and the bank knows the rules better than you. You can't win a game like that.

The bank have nothing to repossess. They have nothing over you other than a worthless piece of paper. No one will ever buy your property except a developer who may purchase the entire site? Whatever scare tactics they are using against you its bluff.

Do you want to be living there in ten or twenty years time? After paying all that mortgage your family will have nothing as unless its fully developed and all the common area transfer done and the management company operating correctly it will be worthless. If the OMC is struck off then the costs just to undertake the legal side of this part could be 25-30k depending on the circumstances even IF the estate was physically finished.