Council claimed a bond in respect of development

[Afterflood]

Hello all,

I own an "investment" property.

It is an apartment.

I posted a cheque for management fee to the management company as usual.

This was several months ago. The cheque has not been cashed.

I emailed the company (which i have done before) but have heard nothing back.

The local paper recently wrote that in respect of this development that "the council had claimed" a bond.

What does this mean?

Does it affect the management company or has it been shut down and the complex taken in charge by the council?

Im worried that the apartment is now worthless. Bad enough that it was worth 50% what i paid for it. I could cope with that but will be in an awful state if it is worthless.

Any advice would be appreciated.

Thank you.

 

[serotoninsid]

The local paper recently wrote that in respect of this development that "the council had claimed" a bond.

What does this mean?

The developer/builder had to lodge a $$ bond with the council as part of the planning permission. The council have now seized the bond - which means that the developer either has not completed the development (in accordance with planning) and/or they've gone bust.

Does it affect the management company or has it been shut down and the complex taken in charge by the council?

No idea - i'm sure someone else here can clarify in that regard.

Im worried that the apartment is now worthless. Bad enough that it was worth 50% what i paid for it. I could cope with that but will be in an awful state if it is worthless.

Worthless?? Why would it be worthless?

 

[lantus]

I would check the companies status on the CRO to see if it is all ok. It could be that the registered office/agent/directors have changed and your cheque did not arrive.

It could be a simple matter of them never receiving it or something more serious.

Do you know anyone else in the development or are you nearby? If the CRO search doesn't turn up anything then maybe pay a visit and talk to a few people to see what the story is.


The bond has nothing to do with the company. Its related to the building of the estate and is a matter between the local authority and the builder as part of the conditions of planning.

At least you have a bond. Our local authority accepted a worthless paper bond with 500,000 written on it which has a street value of nothing. Although the planning conditions only stipulated cash. Luckily local authoritys are not accountable to anyone and so they weren't worried.