MORTGAGE LENDERS are finding homes abandoned and stripped of their contents, the High Court has heard, as an increasing number of homeowners struggle to meet mortgage repayments.
Repossession of a home was granted to IIB Homeloans at the weekly hearing yesterday, after the court heard the property had been stripped of its fixtures and fittings. Counsel for the mortgage lender said fixtures, light fittings and even the door frames had been removed from the property in Tullamore, Co Offaly.
The defendants, Lithuanian nationals, had drawn down a loan of €289,200 in November 2006.
Default on repayments began just a year later, with the last payment on the mortgage made in November 2007. The court also heard the property had been vacant for some time, “possibly since July 2007” and that the defendants had most likely returned to Lithuania.
Three further possession orders were granted to IIB at the hearing, including one for a family home in Co Clare. The court heard that the defendant couple had attempted to sell their property for some time, but without success.
The lender had advanced €220,000 to the couple on January 24th, 2005. Since then, arrears of €13,483 had accrued on the property, with a total balance outstanding of €221,382 due to default on repayments.
Repossession of a Co Kildare home was granted to Start Mortgages, after the court heard just three mortgage repayments had been made.
Some €360,000 was advanced to the defendant in October 2007 against a property valued at €400,000. The monthly repayments were €2,500 but only three were ever made, resulting in arrears of €41,467. The court heard that the property is currently unoccupied, with the defendant living at a new address.
Granting the order for repossession, Ms Justice Dunne said “one would have serious concern whether the property is still of the €400,000 value today given the economic climate”.
A repossession order was also granted to Leeds Building Society after the court heard no mortgage repayments had been made since the loan was drawn down.
The mortgage lender advanced €208,000 to the defendant in September 2007, with arrears beginning in October of that year, as the first repayment was never received. Since then, arrears of €18,279 have accrued, with the current balance owed now exceeding the original loan.
The defendant had made proposals to rent the property for €1,000 per month, giving the rental income to the mortgage lender, but this was rejected as the amount fell considerably short of the €2,500 required monthly repayments.
Vacated properties: asset stripping
THE CEO of the Institute of Professional Auctioneers and Valuers, Fintan McNamara, yesterday said he did not think incidences of vacated properties being stripped of their assets were widespread.
Mr McNamara told
The Irish Times: "It doesn't surprise me at all that this is happening, but I would advise people not to abandon their properties if possible.
"If we have a long recession, people will get very disheartened but I would say to hang on to property as things will come round again, and homes are a long-term investment," he added.
A spokesman for estate agent Douglas Newman Good estimated the number of abandoned homes stripped of their assets to be very low.
He said the main items removed from abandoned properties were copper wire and lead, as they could be sold for scrap.
"Incidences of vacated homes being stripped of their contents have been far more frequent in the UK, especially during the last recession", he added.
John McAlinden of KBC Bank (IIB Homeloans) said it was very unlikely that homeowners themselves would strip the properties of the fixtures and fittings as it would affect their credit record.