Home News Shock in Santry as home purchasers lose deposits

Shock in Santry as home purchasers lose deposits

Tuesday, 30 June 2009

OVER 70 people could be up to E15,000 lighter in the pocket after the developer of an apartment scheme in Santry went into examinership. The devastated investors were told last week that they would lose 99 per cent of their deposits which they put down in 2006 for the apartments at Milner’s Square. A further 22 buyers of properties in Southside development Carrickmines Green were coming to terms with the same bombshell, which was delivered after builders of both complexes, Laragan Developments, went into examinership. The examiner appointed to save the ill-fated company last week told buyers that they would receive just one per cent - e150 of their e15,000 deposit. However, in an unprecedented move, Laragan Developments sought to assure creditors that they could get their money back if they committed to buying a different property from the company. Local representative Róisín Shortall called for greater protection of home-buyers, and argued that they should have the same level of guarantees  granted to the banks. “This incredible loss is yet another indication that there is an urgent need for legislation to protect the purchaser,” she said. “Let's be clear: this Government seems to have no problem whatsoever in rushing through legislation to protect and bail out the banks.  “But once again ordinary members of the public are left exposed to the worst side-effects of this recession. “These prospective home-owners are now left devastated with a substantial loss on their hands. “People saved long and hard for these large deposits that were handed over to Laragan Development in good faith.” A spokesperson for Laragan Developments confirmed that a series of meetings with creditors have taken place as part of the formal examinership process. “Paul McCann of Grant Thornton was appointed by the High Court to act as Examiner to Laragan Developments Limited in March 2009,” it was stated. “As part of the examinership process, the examiner has recommended that the creditors for both the Carrickmines and Milner’s Square developments shall be released from their individual contractual obligations and will receive compensation of one cent in the euro per deposit paid. “This will be paid within a 30 day period. “Laragan Developments has sought to make completed apartments available in both the Carrickmines and Milner’s Square developments for these affected creditors, offsetting their initial deposits against the cost of apartments now valued at today’s market prices (considerably less then their original contract agreements). “This offer has been and remains open to all affected depositors of units in Carrickmines and Milner’s Square.”