Brian Cowen in legal tangle over investment property

mmrebel

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Brian Cowen, the Irish prime minister, is facing legal action in the English courts over his ownership of a buy-to-let flat which his landlords say he is illegally sub-letting to Leeds University.

Mr Cowen is part of a group of Irish investors who invested in a block of “student cluster apartments” designed and built as a hall of residence in the city.

The Newcastle-based freeholder is seeking payment of ground rents and management fees from the Irish group believed to be more than £100,000.

The disclosure of the legal tangle over his British investment property will be highly embarrassing to the Taoiseach as he struggles to navigate the Irish economy and national banks through the worst financial crisis in decades.
The purchase of the student apartment block, which cost around £12.5 million, was financed through mortgages taken out by the investors with Allied Irish Bank, whose share value plunged 98 per cent in the last year because of bad property loans.

read more Brian Cowen in legal tangle over his British investment property - Times Online


Would be very interested to know who the other investors were who got a big fat loan of 12.5 million from AIB.
 


ballot stuffer

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What a mess. There seem to be some serious oversights by these investors in their properties.
Someone didn't do their homework on this purchase it seems.
 

mmrebel

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What a mess. There seem to be some serious oversights by these investors in their properties.
Someone didn't do their homework on this purchase it seems.
Would that not be the job of the solicitor ?or when a bank gives out loans of that size there is meant to be whats known as a risk assessment or due diligence report, obviously not done.
 

mmrebel

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12.5 million for a "cluster of apartments" isn't exactly a huge price for unit. How many units?
it dont actually say but what t does say is

According to a student interviewed at Carr Mills annual rents of around £4,000 are charged by the university. Mr Cowen’s apartment can accommodate seven students in individual bedrooms sharing a kitchen and dining area, suggesting an annual return of up to £28,000.

The Carr Mills apartments were all bought off-plan in 2005. All but two of the investors took out mortgages with the same branch of Allied Irish Bank in Ballsbridge, Dublin. They all completed on the same day.

Fourteen of the investors, including Mr Cowen and his wife Mary, recorded their addresses in the Land Registry as 60 Merrion Square, Dublin.

The total value of the apartments in 2005, based on purchase prices filed with the Land Registry, was around £12.5 million.
While the market value of the apartments is likely to be about half their 2005 sale prices the current value is hard to determine because of the nature of the property.
Its a fair wacked of cash that has been losted 6 million down the drain and most of it mortaged
 
C

caveman

danger here

Will Cowen have to "do a Bertie" to get the cash to cover this?
 

an asal

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It is the loan of 12.5 million from AIB To Cowen and his buddies That I find interesting as Eugene Sheedy is the only CEO still in his position--Why is that I wonder? Maybe now it is begining to make sense. The other thing that the address used by these people including Cowen " Not known at this address" surprising I would have thought.
 

Digout

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Nice to see Cowen supporting home grown business by putting his money into local property....lol.
 

cactusflower

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Was this the only loan Cowen had when the Banks Guarantee went through ?

This one has only come out because of the legal case.

What borrowings do Cabinet Ministers have from the Guaranteed banks?
 

ballot stuffer

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Would that not be the job of the solicitor ?or when a bank gives out loans of that size there is meant to be whats known as a risk assessment or due diligence report, obviously not done.
Yes it would be the solicitors job but that doesnt relieve the investor or bank of any duties in this regard.
I'm trying to get my head around it. The Irish lads bought the long leases from the developer in these apartments which they then sublet to the university. At a later stage the freehold of the apartment complex was offloaded by the developer to a third party most likely another investor. In any case its not clear why the Irish investors weren't paying ground rents or maintenace fees. Did they assume they would be buying individual freeholds with their investment?
Why did the third party investor go ahead with the purchase of the complex freehold when their due diligence should have shown these unsatisfactory long leases?
What is going on here?
 

Digout

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I remember being asked to buy something similar in Liverpool. It looked like a good deal. When I asked for further details, i.e. the exact plans and measurements, I was told "the final measurements have not been sorted yet". Yup, they were expecting people to buy without the final sizes being know.....

This Cowen story is very interesting. Who was behind the selling of the deal here? Who built the apartments? Is his tax up to date re: this? What date was the mortgage given? Who in the bank gave the mortgage? Who else invested in this or other deals made my the same people?
 

Cael

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Brian Cowen, the Irish prime minister, is facing legal action in the English courts over his ownership of a buy-to-let flat which his landlords say he is illegally sub-letting to Leeds University.

Mr Cowen is part of a group of Irish investors who invested in a block of “student cluster apartments” designed and built as a hall of residence in the city.

The Newcastle-based freeholder is seeking payment of ground rents and management fees from the Irish group believed to be more than £100,000.

The disclosure of the legal tangle over his British investment property will be highly embarrassing to the Taoiseach as he struggles to navigate the Irish economy and national banks through the worst financial crisis in decades.
The purchase of the student apartment block, which cost around £12.5 million, was financed through mortgages taken out by the investors with Allied Irish Bank, whose share value plunged 98 per cent in the last year because of bad property loans.

read more Brian Cowen in legal tangle over his British investment property - Times Online


Would be very interested to know who the other investors were who got a big fat loan of 12.5 million from AIB.

Cowen is a sleezy little git, no wonder he has been robbing the Irish people to bail out the landlords.
 


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