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No Management Company, no mortgage?

  • 01-06-2022 10:39am
    Moderators, Computer Games Moderators Posts: 22,357 Mod ✭✭✭✭ Kiith

    Wondering if anyone can help with something. We're currently renting a house in a small estate (6 houses). We would like to buy it, and have asked the landlord if he'd be interested in selling, and he's going to go check with the bank and come back to us. While we wait, we've been viewing some other houses, and the letting agent who showed us a house yesterday (and who also manages our house) said that we wouldn't get a mortgage on it because there is no management company for the estate.

    Does that sound right? I mentioned it to a neighbour, and they got a mortgage 6 years ago without it even being mentioned, so not sure what to think. Are there rules that require a management company for properties in an estate?

    I'll be talking to the bank in the next few days, just wanted to check with you knowledgeable folks first.


  • Registered Users Posts: 5,858 ✭✭✭ Claw Hammer

    Was there ever a management company? When was it struck off? The auctioneer could be telling you a pile of baloney. It may be that the management company was struck off after the neighbour got their mortgage. If it is a leasehold property and there is no management company, it means there is no landlord to enforce the covenants in the lease and likely no insurance on the common areas.

    You should check everything out and don't rely on an auctioneer.

    The chances of getting a mortgage if the management company is struck off are slim to say the least. You solicitor will have to qualify the certificate of title and no bank will touch it unless there is insurance.

  • Registered Users Posts: 5,388 ✭✭✭ Chris_5339762

    You would also want to run away very quickly if there is no management company.

  • Registered Users Posts: 24,668 ✭✭✭✭ Mrs OBumble

    Not necessarily. If the council has taken the estate in charge, and it's all own-door houses with no common built structures, then a management company has little to be doing.