Homebuyers lose deposits as Laragan Homes collapses

Posted by The MyHome Newsdesk
Comments (3)

At a creditors meeting yesterday, around 100 prospective property buyers of apartments in Milners Square Santry and in Carrickmines Green, Carrickmines were told that they would get back only 1% of their deposit.

With the collapse of the Laragan property development company potential homebuyers of these apartments are now facing a refund of 99% less than that of what they had paid. Deposits of €15,000 and €20,000 were given just over 2 years ago which means (unlucky for some) that their deposits are not protected by the Homebond Insurance Scheme as the scheme secures deposits for only 24 months.

With the Laragan property development company now in examinership, depositors will receive a €150 or €200 rebate for their troubles – a far cry from what they handed over 2 years ago.

Most if not all who attend the meeting yesterday were fairly angered by the outcome - and rightly so!

Tags: property Ireland, house prices
Categories: Property News

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Comments

6/25/2009 11:51:58 AM #

I would be a lot more than "fairly angered". This is outrageous. Ordinary people losing such large amounts of money. Many of these were first time buyers too. I think the government should step in and provide some form of compensation.

Sheila | Reply

6/25/2009 11:57:09 AM #

Most people who bought a place 2 years ago have lost a lot more than 20,000. Their negative equity is much greater than the loss here. I accept that these people never even got to live in the place. How can developers get away with this? I would be very careful about putting a deposit on anything in the current climate.

Jas | Reply

6/26/2009 12:28:01 PM #

Hi,

Home buyers who have paid deposits on properties in two developments in Dublin, built by Laragan Developments, could lose 99% of their money as the company is in examinership.The High Court appointed Grant Thornton Ireland to act as examiner to Laragan Developments Limited in March 2009.

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