Bankrupt Builder

M

murdoc

Guest
We are selling our home and have a buyer however the builder had a bond to look after the roads and drains in the estate for 10 years and his company is now bankrupt. Is this likely to cause an issue with the bank granting the buyer of the house a mortgage.
 
This is the buyers problem, or his bank, but it only becomes their problem if they are somehow made aware of it.

Your obligation and your solicitors duty of care centre on your house, not the estate.

Even the architect's opinions of compliance normally certify only the house, not the estate in which it is located.

If the builder paid the Council the bond it may be the Council's resposibility now to use this bond to carry out this work.

If the roads and drains are okay right now then 10 years may not be a problem.

If there are known recurrent drain blockages or if the road is showing clear signs of cracking and settling there may be a problem, as this may be noted in any survey the purchaser commissions.

But again, this may only arise where its so severe that the bank places a lower valuation on the house because of this, i.e. it seems like a generic "estate" problem, which may tend to devalue all the houses in the area.

Hope this helps.

ONQ
 
If the roads and services are "in charge", there is no problem. If they are not in charge, it is a problem. And it will become evident early on as it needs to be flagged in the Contract. This is a conveyancing/practical planning issue which needs to be addressed.

mf
 
Thank you for the responses. The bank giving the buyer the mortgage has raised this. The estate is 5 years old and there is no issues with the roads or the drains so hopefully it wont mess up the sale. The annoying thing is that the builder in question is building more houses around the corner under a different company name !
 
mf1 said:
If the roads and services are "in charge"
Click to expand...
When you say "in Charge" do you mean that they are owned by either the council or the builder ? I know that the builder has requested the Council to take the ownership but it has not happened yet hence the delay on the sale going through
 
You must log in or register to reply here.
Back
Top