Buying a house in an estate not "taken in charge" by Council and mortgage approval.

2

20newbie2011

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Hi All

Im just in the process of buying a 2nd hand house, house is 10 years old.

My solicitor is concerned that the Bank might refuse to sign off on the mortgage as the estate is still not yet under the control of the council.

Im tyring to establish why the estate is not yet under council control.

Has anyone else experienced any problems with this issue when drawing down a mortgage?
 
Sounds like a nonsense issue, assuming this isn't a ghost estate.

Estates are developed over periods of several years.

Its not unusual for and estate to be waiting ten years before being taken in charge by a local authority from the date the first sod is turned.

Councils like having developers bonds in their accounts and tend to delay taking in charge estates because its more money out of the kitty.
 
Thanks.

Well follow it up with the bank, it may be just the solicitor being ultra careful.

All units are sold in the estate.
 
20newbie2011 said:
My solicitor is concerned that the Bank might refuse to sign off on the mortgage as the estate is still not yet under the control of the council.
Click to expand...

shouldnt the value of the house reflect this and all other relevant facts ? Maybe think twice about whether you are getting a good deal in a buyers market.
 
The council will not take the estate in charge if certain infrastructure is not up to standard. You should check (with the original developer) the status of water mains, drainage, sewerage, public lighting, roads, footpaths,open spaces, trees and fences with common areas. My estate is still not in charge and we pay for the public lights and maintenance and have had to retro fit valve covers and markers and provide dished foothpaths for wheelchair access.
 
I'm sure that your solicitor would have clarified this but no chance it's actually a privately managed estate that will never be taken in charge of the council? Some estates fall into that category - even if they are not gated/enclosed. I live in one as it happens.
 
Its not a privately managed estate. My understanding is that it just hasnt been taken under Council control yet as there are some outstanding issues (kerbing/tarmac etc) the developer has to finish off first.

Given that the condition of the estate overall is very good and all houses are occuiped i would be happy enough on the value for money aspect of the house purchase.
 
How are things like refuse collection and maintenance (e.g. roads, pavements, surface water/foul drainage, lighting etc.) being handled right now if the council are not doing it? As it happens while my place is privately managed the council did start refuse collection back in the day and they have continued doing this (at the usual cost to the householder) while everything else is dealt with by the management company/agent. I wouldn't have thought that the lender would refuse the loan on the basis of the estate not being taken in charge by the council but presumably your solicitor had reason for flagging this - even if it's just to apprise you of a small risk factor?
 
i have the same thing in my estate.
the council have not taken it over and will not until the developer finishes off all required work, as laid out in the planning permission.

the estate has been built in stages over the last 6 years and not all units are sold.
but the residents do not have to pay for maintenance or lighting.

the developer pays for all that stuff, and will have to pay to finish the estate.

the only thing the residents do pay for is the grass cutting as the developer only has to cut the grass twice supposedly.
 
smart response = The Bin Man

AES, Ray Whelan, Oxigen, council dont really collect bins in Athy.
 
Hi 20newbie2011

I am in the very same position as you were in. I was just wondering did you buy the house in the end i.e. did your mortgage lender have a problem with the estate not being "taken in charge"
 
Hi 30something

Ya bought the house in the end. My solicitor got a letter from the Council confirming the developers bond was still in place so the Bank seemed to be ok with that.

My solicitor seemed to be very worried about it, even though the estate is 99% finished, 10 years old and fully occupied. Think he worked on some purchases in unfinished estates which are now in a mess etc, so maybe he was right to be worried.
 
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