Buying a house but developer has gone bust

[Ravima]

Colleague is buying a house.

All is fine with the house.

Development is not yet taken in charge by local authority.

Developer is bust.

Colleague is concerned that bank may not approve loan.

Has anyone any experience of a similar situation??

 

[RedOnion]

Colleague is concerned that bank may not approve loan.

It shouldn't be a problem. Solicitor will qualify title, then bank will consider it. So long as it's not an unfinished estate, it shouldn't be an issue.

To speed up the process, contact the planning department of council to see what stage it's at, or if anyone even applied for estate to be taken in charge yet. If it's at an advanced stage, a letter to that effect can go to the bank.

 

[Dermot]

If its an unfinished estate and the Co Co have not taken it over yo need to do a lot of checking including a copy of the planning and if there is anManagement company in place and who is on it etc . Have had a bad experience so be prepared to walk away Bank will probably be asking a lot of questions

 

[Ravima]

Its NOT an unfinished estate, thank God. Local Authority are in process of taking over and have confirmed that they hope to have the process completed in 2019. Thanks to the two respondents.

 

[Dermot]

Check if there is a Management Co in place. Check if there are many owners involved in the Management Co. Check if the Management Co has its accounts up to date and if there is a sinking fund. Is the management co. active and have the common areas been handed over legally to it from the developer. Are the Co. Co satisfied with the sewerage system (piping for mains). They normaly get a camera inspection and report on same. Are the Council satisfied with the quality of the roadway (surface etc). Is the street lighting to their satisfaction. Check that all the mapping is right.

 

[RedOnion]

Its NOT an unfinished estate, thank God. Local Authority are in process of taking over and have confirmed that they hope to have the process completed in 2019. Thanks to the two respondents.

Mortgage shouldn't be an issue in that case.