Hello all,
We had agreed a house purchase for €195k. The bank agreed to lend us €175k. All was going well and we handed over the deposit (booking and remainder). I'm assured by my solicitor that we can get the deposit back should it all go belly up.
However, as we were about to draw down, the bank said that because there was the potential of an outstanding claim on the management company (by a now defunct builder) of €10k, they would only lend us €156k, ie. 80% LTV vs the original 90%LTV.
The claim was lodged in the courts but never proceeded any further. Nothing was ever done about it since and the builder went bust in the meantime. Several other transactions went through since. The bank are imposing this extra burden as they say the whole amount could be levied on our house if no one else in the estate pays, should it go to court, and the court find against the residents.
1. I'm presuming they can do this legally but is there any mechanism to appeal this decision?
2. Has anyone gone through something similar?
Thanks
We had agreed a house purchase for €195k. The bank agreed to lend us €175k. All was going well and we handed over the deposit (booking and remainder). I'm assured by my solicitor that we can get the deposit back should it all go belly up.
However, as we were about to draw down, the bank said that because there was the potential of an outstanding claim on the management company (by a now defunct builder) of €10k, they would only lend us €156k, ie. 80% LTV vs the original 90%LTV.
The claim was lodged in the courts but never proceeded any further. Nothing was ever done about it since and the builder went bust in the meantime. Several other transactions went through since. The bank are imposing this extra burden as they say the whole amount could be levied on our house if no one else in the estate pays, should it go to court, and the court find against the residents.
1. I'm presuming they can do this legally but is there any mechanism to appeal this decision?
2. Has anyone gone through something similar?
Thanks