A WEST of Ireland couple face losing their home after the High Court ruled Irish Bank Resolution Corporation (IBRC) was entitled to an order for possession of the property arising out of their failure to repay a loan advanced to them in the 1990s.
In his ruling yesterday, Mr Justice John Hedigan said IBRC was entitled to an order for the possession of Patrick and Patricia Raftery’s home at Cloonbrackna Court, Roscommon, over their failure to repay €246,000 arising from a £69,000 (€87,600) loan taken out to buy an investment property. Most of the sum claimed is interest. The couple intend to appeal yesterday’s ruling.
IBRC, the State-owned bank formed after Anglo Irish Bank and Irish Nationwide Building Society (INBS) were amalgamated and nationalised, sought the order arising from a bridging loan allegedly advanced to the couple in December 1991.
In November 1992, IBRC claims the couple agreed to repay the £69,000 loan and to put up the family home as security.
In a counterclaim the couple claimed the bank acted in breach of its fiduciary duty towards them. However, in his ruling the judge dismissed their counterclaim.
Seeking the order, IBRC said the loan was advanced to the couple to go toward their purchase of a property known as the Hob in Charlestown, Co Mayo, incorporating a coffee shop, post office and licensed premises.
Arising from their failure to repay the loan in 1996, INBS took possession of the Co Mayo premises and sold it for £72,500.
IBRC said an outstanding amount on the original loan, including interest, continued to accrue and was not repaid.
The couple denied failing to repay the loan and claimed loan agreements relied upon by IBRC were not valid. They also argued the bank sold the Mayo premises and its publican’s licence for much less than its market value.
Mr Justice Hedigan said it was “remarkable” not one repayment on the loan was ever made.
In rejecting their counterclaim, he said the couple had “manifestly failed” to show the investment property was sold at a price “below the scale”. At the time of sale the premises was all but derelict, the judge noted.