Mortage situation - estate not taken in charge

One_Of_Shanks

Just looking for some advice/info really. Basically we had been house hunting for yonks and finally got to the stage where mortgage was ready for draw-down on a lovely home and figured we were all set to go in and sign contracts when solicitor suddenly said there could be a problem.
The estate the house is in has not been taken in charge by the council yet.
Our solicitor told us she is obliged to tell the bank.
And she said they might possibly refuse to let us draw down the mortgage now.
Told us we will probably have to wait 10-14 days to hear back from the bank.

Obviously we're very worried now. Is this common? Do banks usually withdraw the loan offer under these circumstances?

The estate is roughly 10 years old. It is fully completed and all units sold and occupied, looks to be in excellent condition etc.
The builder/developer has gone out of business and the bond has expired BUT the county council told me via email that they have already taken the lights in charge and they expect to have the estate fully taken in charge within approximately the next 12 month period after some minor issues (footpath and a pump) have been resolved which they are working on.

Does anyone know how big of a problem all this could cause and are we totally screwed now for the mortgage or am I worrying over nothing?

Thanks in advance

seamus

Send that email onto your solicitor and the bank.

Obviously the issue here is that with the bond expired, any auxiliary works that may be required, become a burden upon your property which would affect the ability of you (or the bank) to sell it on.

Your solicitor has likely been provided with the relevant details of costs and outcomes by the management company. If it's a minor matter due to be resolved soon, the bank will probably let it through.

One_Of_Shanks

Cheers Seamus!
Yep I sent a copy of the email from the county council on to my solicitor. Not sure who in the bank I could send it to though because the person who I had been dealing with said its a legal issue and she can't help until the solicitor and their legal dept have communicated.

I'm hoping and praying that the fact the co-co have said they will be taking it in charge should be enough for the bank but I'm totally new to all this and haven't got a clue how it usually tends to go.

Our mortgage LTV is 50% so if that gets taken into account then hopefully it will help too but I'm guessing it probably doesn't.
I had never even heard of the phrase "taken in charge" until all this popped up. Won't be forgetting it in a hurry now though!

Maximus_1

Bought a house in very similar circumstances 2 years ago. Lovely 4 bed detached in a small 20 house development. Like you said all houses (bar 1) sold and occupied etc. Everything finished bar some signage and a few small details. Our solicitor knew full well about the scenario with the estate not been taken in charge by the council (he was also solicitor for the now bust developer) and it was never mentioned as an issue in any of the times we met him.

One_Of_Shanks

Nice one! How i wish I had your solicitor mate!

Mrs OBumble

One_Of_Shanks wrote: »

Nice one! How i wish I had your solicitor mate!

You wouldn't wish that if something is found that stopped the co-co taking the estate on. I know they SAY they will take it, but until they actually do, there's a risk that they'll find a show stopper, which will cost the home-owners a lot to fix, and make their houses un-sellable in the meantime.

One_Of_Shanks

Mrs OBumble wrote: »

You wouldn't wish that if something is found that stopped the co-co taking the estate on. I know they SAY they will take it, but until they actually do, there's a risk that they'll find a show stopper, which will cost the home-owners a lot to fix, and make their houses un-sellable in the meantime.

If the bank give the green light then I still have that same decision to make.
I've seen the list and would be happy enough to proceed.
I'm not really looking for a debate on the solicitors end of things, it's more a case of my wondering what usually happens here with the bank/mortgage end of things.

For example, do the bank usually withdraw the offer, or is there anything I can do my end to help push it through, do these things tend to go on for ages etc?

mel.b

I purchased my house almost 2yrs ago. Estate complete, fully occupied but not taken over. The developer was bankrupt but fortunately the bond was still available. The bank also had an issue becuase there's also no 'management company' in place (although there is a very active Residents association). It took a while but my solicitor was able to get it over the line with the bank (AIB).

One_Of_Shanks

Thanks Mel !

Can I just ask, when you say it took a while, did it add on weeks or months? (please don't say years, lol)

GavMan

Had the same issue myself but my solicitor sorted it out and there was no delay. This was last August with Heaven Mortgages.

Basically, the solicitor has to give an undertaking to bank that the property has good title. Good title basically gives the bank an indication is that if they had to sell your house to recoup money, they could do so without too many issues.

All the solicitor has to do is include a proviso in this undertaking that the estate is not taken in charge but is completed and occupied and is on the County Councils agenda to be taken in charge.

You'll be fine. If your solicitor is worth is his salt, he'll get this over the line.

One_Of_Shanks

Thanks a million Gav! I'll mention those exact words to my solicitor. Really appreciate that, cheers!

mel.b

One_Of_Shanks wrote: »

Thanks Mel !

Can I just ask, when you say it took a while, did it add on weeks or months? (please don't say years, lol)

Sale agreed in April, keys in Sept. Not sure how much of that was down to this particular issue but it did contribute.