Businessman claims house worth €650,000 more than bank valuation
A CO DUBLIN businessman claimed in court today that his home was worth €2 million despite a valuation of only €1.35 million by Bank of Ireland Mortgage Bank.
Timothy Costello, of (No 3) Richmond Hill, Monkstown, who with his wife Karen is facing a re-possession demand, told County Registrar Susan Ryan he wants an opportunity to sell the house.
Barrister Anne Lawlor, counsel for the bank, said Bank of Ireland Mortgage Bank had valued the Costello home, on which it was owed €1.61 million, at €1.35 million, representing a negative equity of about €300,000.
She told the County Registrar’s Court the bank was seeking a possession order. The Costello’s had been granted a €1.5 million interest only mortgage which had expired on August 20, 2010 when the full amount had fallen due.
Costello, who represented himself, said a valuation of the property had been carried out for him in 2010 and again earlier this year and “came in at €2 million.” He had been advised that South Dublin family homes were improving in value.
He said he believed there was equity in the property. In 2011 he had met with the bank and told them he wanted to sell the house.
Counsel for Karen Costello said he was drawing up a motion to tie in the possession application with existing High Court proceedings and asked for an adjournment.
Ms Lawlor said the bank opposed a transfer to the High Court where legal costs were excessive and, due to the existing financial situation, were never going to be paid by anyone but the bank. No payment had been made to the bank since August 2010.
County Registrar Ryan said that whatever equity might remain above the debt of €1.6 million it could easily be whittled away by costs. Every time an appearance was made in court it added costs to the mortgage and equity was diminishing all the time.
Ms Ryan said it seemed to her that an order should be made for possession of the property with a stay pending the outcome of the High Court proceedings. She wished her views to be made known to the High Court judge.
She said she wanted matters clarified by the next hearing on June 19 when, if there was no progress, she would be making an order for possession.