Wednesday 22 November 2017

Banks' rush to cash in pushes apartment blocks to market

Market sources say Bank of Ireland and AIB in particular are moving to take advantage of stronger prices and rising rents to sell off repossessed rental homes while also urging stressed borrowers still in possession to sell up
Market sources say Bank of Ireland and AIB in particular are moving to take advantage of stronger prices and rising rents to sell off repossessed rental homes while also urging stressed borrowers still in possession to sell up

Mark Keenan Residential Property Editor

Hundreds of tenants are likely to be uprooted before the end of the year as Irish banks take advantage of the current shortage of rental properties to push ahead the sale of buy-to-lets subject to stressed loans.

Market sources say Bank of Ireland and AIB in particular are moving to take advantage of stronger prices and rising rents to sell off repossessed rental homes while also urging stressed borrowers still in possession to sell up.

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It means that rent and contract compliant tenants are likely to be ejected to provide the "full vacant possession" terms which are generally preferred by purchasers, and those who remain in situ during the sales will face a choice of increased rents or eviction.

A total of 117 individual apartments selling singly, in batches and in entire blocks and worth more than €10m, are to be sold in an auction in one day.

On July 8, the Allsop auction will see family homes, cottages and large period homes go under the hammer.

Allsop said that it was urging buyers to keep "performing" tenants, but added that many of those who were behind in the rent or paying under market rates were already likely to have been vacated in the run-up to the sale.

The auction includes four blocks of apartments in Dublin comprising 24 units valued at €2.25m; 16 single apartments in Dublin with a total value of €3m, and four multiple occupancy lots with 30 bedsits with a reserve of €1.55m.

The July sale includes Mabbot House, a block of 10 apartments to the rear of 91 Gardiner Street in Dublin with a reserve range of €1.1m to €1.3m.

Sherry FitzGerald's latest report showed that those selling investments now comprise more than half of all vendors for the first time, while those buying investments stand at 20pc.

Irish Independent

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