A SLIGO couple have been told they must sell their home, which has newly secured planning permission for development, within six months or it will be repossessed.
The couple had borrowed €210,000 from Secured Property Loans Ltd in 2007 to develop part of the land at their family home in Sligo, but had run into difficulties and permission was only secured last month.
Mr Justice Brian McGovern granted nine orders for possession at the High Court yesterday.
Secured Property Loans received two orders, while Bank of Ireland, Carlisle Mortgages, the Educational Building Society and Start Mortgages Ltd, with Bank of Scotland Ireland, Irish Nationwide Building Society and GE Capital Woodchester Home Loans secured one repossession each.
Counsel for Secured Property Loans told the court the couple had an outstanding debt of €290,000. The money had been borrowed for a 12-month period in 2007 and the last time interest was paid was August 2008.
One of the borrowers said he had been granted planning permission to develop his home, which included the demolition of part of the rear of his home and the construction of a separate two-storey building with four two-bedroom apartments.
He told the court his family home was more than 100 years old with 11 bedrooms. He did not have the money to build the development himself, he said, but if he sold it now he would get something back.
Mr Justice McGovern said he understood the borrower wanted to salvage something out of the mess. He said he would grant the order for possession, but with a stay of six months.
He described the borrowers in a separate order for possession as “casualties of the property crash”. One of the borrowers who was present in court, said one of the properties he and his partner borrowed money to build, an unfinished home in Limerick, could have been sold for €680,000 in 2008. But Bank of Ireland had refused the offer. He claimed the manager of his branch had said the property was worth more. However, in an affidavit, the manager said she never refused the offer and would have accepted it at the time.
