Estate not taken in charge, will banks give us a mortgage?

Bella86 · 20-03-2017 03:40PM #1

Hi
I currently went sale agreed on a house, it is based in a very small housing estate containing only 5 dwellings.. The housing estate is completely finished and was compelted in 2005. However, the footpaths/road have not been taken charge of by the county council. There is no management company and never was as it is only the small road of footpath that needs to be maintained.. All houses have there own septic tanks. I was wondering will a bank lend based on this?
Any advice would be great!

Michael D Not Higgins · 20-03-2017 03:57PM

The development predates the MUD Act by 6 years. Why didn't the council take charge of the road? Is the estate liable to set up an OMC? If something goes wrong, who pays? I'm sure your solicitor will advise against buying even if the bank are willing to advance the funds.

Bella86 · 20-03-2017 04:44PM

Don't know why the council hasn't taken over the estate, no there is no management company in place as it is only a small road that leads into estate and each house has its entrance it is only a 5 acre site with 5 houses.. Why would solicitor advise against it? So is there no chance in this sale going through?

ThisRegard · 20-03-2017 04:54PM

Michael D Not Higgins wrote: »

The development predates the MUD Act by 6 years.

Does it matter when the estate was built? I thought MUD applied to pretty much anywhere that the council doesn't have control of that has a management company?

Bella86 · 20-03-2017 05:10PM

what is MUD? The developer of this estate has gone into liquidation (only 5 houses, no green, only 3 street lights, have our own septic tanks). There is no management company as the residents of the other 4 houses don't see the point as there is no requirement for upkeep as there is no green.. So is there no chance to a bank lending money for this house based on the fact there is no one looking after roads/footpaths?

ThisRegard · 20-03-2017 05:14PM

It's the Multi Unit Development act, http://www.irishstatutebook.ie/eli/2011/act/2/enacted/en/print

The act itself can be confusing to read, but some places, like here http://leman.ie/muddy-waters-what-the-mud-act-means-for-your-development/ and http://www.mcdowellpurcell.ie/news/multi-unit-development-act-2011-failure-comply-blot-title/ simplify it a bit, and imply this may be relevant to you

Sections 4 and 5 apply to existing developments in which the common areas and the reversion have not yet been transferred to the management compan

The biggest issue, if applicable, may be the lack of a sinking fund.

Michael D Not Higgins · 20-03-2017 05:15PM

ThisRegard wrote: »

Does it matter when the estate was built? I thought MUD applied to pretty much anywhere that the council doesn't have control of that has a management company?

My point was why was it without a management company or the council taking it in charge for so long. It may have had planning on the basis of not being taken in charge by the CC. In any case, this is something that can't be solved between the vendors and buyers and the solicitor should advise against the sale. That doesn't mean the sale can't go through.

Bella86 · 20-03-2017 05:28PM

I know that it is currently in the advanced stages of being taken over by the County Council but when this will be who knows.. It could be a month a year... It is taking County Council a very long time to take ownership of estates in the area I am, the majority of estates are nearly 10 years old and still not taken over.. The reason why it was without a management company is because the estate only comprises of 2 street lamps (that the neighbours say they changed the bulbs) and also a road probably 300 meters in length that is tarmacked.. All kerbs etc are in place also and it appears to be well looked after but there is no official management company in place..

Michael D Not Higgins · 20-03-2017 05:33PM

Okay, your first post made it seem like the council weren't going to take the road in charge. That changes things and might be more likely to have a positive response from the bank and solicitor. I'd advise getting a solicitor and onto the bank asap since it sounds like you don't have these in place for a house you have verbally agreed to buy.

Bella86 · 20-03-2017 05:44PM

I do have a solicitor in place he is in court for next couple of days and I didn't want to be going off and informing the bank without getting advice from solicitor first.. I just was a bit off put as I have read that banks wont lend to people who are buying a property with no management company or if the estate is not taken charge of by the county council..

athtrasna · 20-03-2017 06:31PM

Mod note

OP please do not bump old threads asking the same question as this thread. I have edited this thread title for clarity and this should bring responses from people who have experienced this situation. Thanks

Ayuntamiento · 20-03-2017 11:30PM

Can't understand why the owners wouldn't set up some sort of management company to look after themselves...
I own a property in a similarly small development in Dublin that has never been taken over by the City Council (it's over 20 yrs old). We pay a reasonable enough management fee and the place is in perfect order.
I'm only new so not sure why the other owners never went down the route of involving the Council. Maybe they worried it would go downhill if we were relying on the Council for upkeep. Our sale went through easily because of the presence of this management company despite there being little necessity for them.

Estate not taken in charge, will banks give us a mortgage?

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