Possession order over couple who owe €1.8m

FOUR ORDERS for possession were made at the High Court yesterday including one against a developer couple who owed €1.8 million for property and land in Longford and Leitrim.

Ms Justice Elizabeth Dunne granted orders to National Irish Bank, Bank of Ireland, Carlisle Mortgages Ltd and Start Mortgages Ltd.

Of the 62 cases listed, almost 50 were adjourned and in many cases, the court was told lenders were in negotiation with borrowers.

In a case involving Bank of Ireland and property in Leitrim and Longford, the court was told a couple had an outstanding loan of €1.8 million, including interest.

The couple had borrowed €1 million in 2006 for development land in Longford and €700,000 for three apartments in Manorhamilton, Co Leitrim. Both loans were due to be repaid in 12 months.

The lender had met with one of the borrowers and was told he had “onerous borrowings and cash flow difficulties” and his building company had gone into liquidation.

Ms Justice Dunne said it was clear the properties were investments. She said the bank was entitled to its orders.

But the judge adjourned a complex case involving land in Co Louth.

The court was told a receiver had been appointed to deal with 122 acres of farmland in Ardee, Co Louth, which had been used to secure a loan from ACC Bank.

Some 72 acres of the land were leased to a farmer and another 50 acres were under crop planted by a tillage farmer.

Counsel for the tillage farmer said his client had borrowed €800,000 from Bank of Ireland to purchase the 50 acres, and had thought he was buying it free from any encumbrance. He paid over the money to his solicitor and it should then have gone to ACC Bank, but it had been given to the original owner’s solicitor, Traynor Company Solicitors, and the bank never got it.

Counsel requested time to begin legal action against the solicitor who had paid over the money.

Ms Justice Dunne said she was mindful of the obligations of the receiver, but was concerned for the farmer.

Counsel for the dairy farmer told the court his client had made an offer to purchase the 72 acres he was leasing from the receiver for €300,000, but no deal had been made. She adjourned the case for four weeks.