A million pound bungalow could be sold at public auction.

Failte, located just off Clay Head Road, Baldrine, has been arrested by the Coroner over unpaid debts totaling more than £1.2m.

It has been on the market with Cowley Groves since 2021 with an asking price of £1.495,000.

Cowley Groves describes Failte as an extensive detached modern four-bedroom bungalow in a sought after location offering ‘some of the best coastal and rural views in the island’.

But it has emerged that lender Barclays obtained a default judgment and execution against the property’s owners Failte Property Ltd on January 12 this year in the sum of £1,216,396. The home is the owner’s only realisable asset.

An order for vacant possession was granted by the high court in July.

The home is now to sold at public auction, possibly in late January, on the instructions of the Coroner for Ayre and Garff Gareth Leece.

Details were revealed in a court judgment on a dispute between Barclays and the Coroner over what fees the latter is entitled to in connection with the disposal of the Clay Head Road property.

Failte, a million pound bungalow in Baldrine, is to be sold at public auction

Barclays argued that he was entitled only to the sale fee but the Coroner maintained that the legislation provided for him to also receive a collection fee.

In a judgment, Deemster Andrew Corlett ruled that the Coroner’s position was the correct one.

He said: ‘Coroners are entitled to both the “collection fee” and the “sale fee” following a Coroner’s public auction of real or personal estate.’

The court was told that any occupants had to vacate the property by September 28.

This had happened but the condition of the house was found to be worse than had been expected due mainly to the ingress of water.

While it had been thought that it might be worth around £1m, this was now unlikely to be the case.

As a result, Barclays was now facing a shortfall greater than that originally anticipated and was concerned the sales proceeds would not be enough to cover the debt.

The Deemster was told that it was unlikely that a Coroner’s auction would be held until late January at the earliest in light of market conditions and the time of year.

If the property did sell for £1m, the Coroner would be entitled to a sale fee of £10,017 plus an additional 2.5% of the amount collected, i.e. about £25,000, or 5% if paid in instalments, taking it to £50,000.

Companies Registry shows that Failte Property Ltd was struck off in July 2021. It had one director, a British Virgin Islands-registered company.