one thing that you need to be very careful about if you are involved in a
staged payment mortgaging of building a South building a house is the financial
conditions in the planning fruition
this is something that comes up again time and time again essentially it's a
lawn condition a condition of your lawn for your stage payment mortgage that the
financial condition of the planning permission is granted to build your
house is complied with and your solicitor is going to have to give an
undertaking to get good title give good title give a certificate of title to the
bank and part of that certificate will be certifying that all of the conditions
of the planning information including the financial conditions have been
complied with and it frequently arises does a couple or a person and more
building a house will go ahead and build away and use up the money to the very
best of their ability and there's going to be overruns and this time the other
and then at the end or before the end when you go to draw down the last
payment the difficulty is does the financial
condition of the plan information will not have been complied with now
invariably mortgages the borrower is going to say oh I'll do
a deal with the console and approach the local authority
I'll make some sort of an arrangement with them that's fine as far as it goes
but may not be acceptable to the lender and the reason for that is this if the
borrower enters into an arrangement with the local authority pay by to pay say
five grand or ten grand over a period of time that's the first
contribution with some of the council's sort of Dublin for example means and
coudair that agreement only goes so far because let's face it if the agreement
is not upheld if the agreement is not honored if some circumstance overtakes
the whole arrangement and the borrower is unable to fulfill the agreement with
the council then the bank has a problem but more importantly from my perspective
the solicitor has a problem the problem is that if the bank had to foreclose on
the property there would be an outstanding financial condition to the
council still to be made still to be complied with and the problem then from
the solicitors perspective is he or she is given an undertaking to the bank if
good title is not title that has essentially a lien or an encumbrance or
a charge owners and that's essentially what the situation would be the money
would still have some paid off to the council in order to give a good clean
bill ventilation planning and if the bank had to foreclose and repossess the
property and sell it on then they're going to be looking to the solicitor to
make good money on standing money to the local authority if that was necessary
so on the one hand entering into an arrangement with the council it's all
very well and it's common enough but on the other hand you need to be aware that
a lot of others simply will not accept that because they recognize the best
women world intentions are one thing for payment of
the financial conditions the five grand or the ten grand or whatever is involved
it's quite another matter circumstances you can change relationships can break
down and a person can lose a job very handy
they're living in a new house and suddenly the agreement attachment with
the local authority is simply not going to be upheld
and as I say if it's not the bank then is going to have a difficulty there's
going to be outstanding money - and they're gonna be looking for the
solicitor hope you find this video useful and if you involve yourself in
mortgage or sell field house rather and staged payment mortgage I made another
video on a burning tuition quarterly or someplace link to that
particular video it deals with the whole question of self building houses not
staged payment mortgages and what's involved
hope you like this video thanks for support thank you for sharing your
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