Developments where the banks won't give mortgage approval

EarWig

I got an email from an agent selling a property in Spencer Dock.

Strictly cash buyers only.

I know there can be many reasons for that, but it did get me to wondering whether it's because banks won't approve a mortgage there.

Anyone got any intelligence on this?

Former Former Former

It’s often because there’s an issue such as inadequate fire safety or a structural problem that hasn’t been resolved and they know a bank won’t lend.

SupaCat95

It could be health and safety, anyone remember Priory Hall? Remember the apathy of the government to resolve it?

It could in regard to the location be for corporates to buy for their employees working 16 hour days in the IFSC. Supermacs and Ryanair are now buying strategic accomodation for its employees.

EarWig

I talked to the agent today, and asked.

The agent agreed. 'Cash buyers only' translates as unmortgageable.

The agent then went through different developments in the area outlining the issues.

Respect.

Claw Hammer

Cash is almost never paid for a property. It is either bank draft or electronic transfer. No solicitor acting for the vendor of a property would accept cash.
Some problems with mortgaging a property are sometimes confined to one unit and don't affect an entire development. An example is overholding tenants where vacant possession is not being given.

JP 1800

I doubt the estate agent is expecting some one to rock up with a bag full of cash. The cash buyer refers to someone who has the funds to buy without the need of a mortgage. All the regular legal procedures will apply to purchasing the property.

SupaCat95

Banks have their own internal engineers and lawyers, or might have some inside information that something is wrong. Possibly look at the project managers or developers. They probably have some sort of dodgy history.

SupaCat95

Ever see the movie "The General"? If you ever had that amount of cash on the premises you are about to be robbed. Crazy early Celtic Tiger days pre CAB, I am sure there were characters buying property for cash on a monthly basis and there were strange relationships between estate agents and criminals no questions asked.

EarWig

The issue is known building problems, part of which will not be covered by the Government's Remediation of Defects in Apartments and Duplexes scheme.

Strange detour by some posters. And they criticize AI for hallucinating.

Former Former Former

https://www.boards.ie/discussion/comment/122219685#Comment_122219685

Why would a bank not give a mortgage on an apartment because Supermacs were buying apartments somewhere else?

SupaCat95

It was an example of the corporates bulk buying accomodation for housing for housing their owmn staff. There was an article that you needed a salary of in excess of €80k to rent in the proximity of the IFSC. If you are a financial analyst you have early morning to recieve reports from the far east and closing late to prepare reports for the opening East coast America markets. The next morning its a rinse wring and repeat job. You nearly live on site.

Jim2007

https://www.boards.ie/discussion/comment/122233308#Comment_122233308

And you certainly would not want to believe all you see in the moves! Like for instance the agents don't touch the cash, solicitors doing and since the cash has not actually got into the banking system at that point it would be an utterly stupid move.

SupaCat95

In all fairness the events in "The General" was over 40 years ago. What was the guys name that went states evidence against the Veronica Guerin hit squad? Charles Bowden he said he often had €80k of his own cash on hand (not holding it for anyone) .

EarWig

https://www.irishtimes.com/property/residential/2024/06/17/cash-only-please-why-you-cant-buy-some-properties-if-you-need-a-mortgage/

Cash only, please: why you can’t buy some properties if you need a mortgage

Marcusm

https://www.boards.ie/discussion/comment/122233148#Comment_122233148

ha ha. You have never worked in or dealt with a bank on stuff like this. They specify policies and then require the purchasers solicitors to deal with the . There would be a requirement of a current fire certificate or a cert of compliance with building controls regulations. The relevant developments don’t meet these and are thus “blacklisted”. Makes no difference to the lenders as there are plenty of borrowers with compliant properties.

SupaCat95

Nope. I haven't, hands held up. I am guessing in the fallout from Priory hall fiasco. Nobody was held responsible and it wasnt the first time the tax payer wasnt screwed over by that crowd. You should always research who you are buying from.

Del2005

https://www.boards.ie/discussion/comment/122272005#Comment_122272005

The tax payer, Us, is getting screwed over by the hundreds of other complexes that where built during the boom which don't meet fire safety requirements. We are also getting screwed over by the Pyrite and Mica disasters. The ones who are getting most screwed though are the people in proactive MUDs which have already paid over tens of thousands of Euro to rectify dodgy buildings and might not get any compensation while they are funding the negligent MUDs

https://www.gov.ie/en/service/ede52-interim-remediation-scheme-for-fire-safety-defects-in-apartments-and-duplexes/

SupaCat95

https://www.boards.ie/discussion/comment/122272555#Comment_122272555

Shure we have no clue how many there were. The construction industry was massive like 40% of the population were involved in or associated in the construction industry. It was crazy.

TThe one thing I was told in school was these timber framed houses were as good as concrete ones. I NEVER EVER bought into that shite. I dont think you can build a good house without a proper ventilation system like a chimney also.

Many companies that did make money and built are now folded and are no longer liable. The whole thing was unsustainable.