A man who failed to establish squatters’ rights on the house he has lived in for most of his life is to be allowed remain there for another year, the High Court has ruled.

Last month, Mr Justice Gerard Hogan said Michael Flaherty (59) was not entitled to claim adverse possession on the house in Henry Street, Galway, which was bought for €37,500 at an Allsops auction in 2012 by solicitor Orla Cullinan and Cyril Dooley believing they had vacant possession.

However, Mr Flaherty, whom the court heard had been in the house for 50 years, was still there when the new owners entered the house. The last time Mr Flaherty paid rent was £5 to the previous owner in 1998, the court also heard.

Rejecting Mr Flaherty’s claim, Mr Justice Hogan said the fact the previous owner had repaired the roof and insured the house was sufficient to arrest the 12-year period of uninterrupted occupation required to claim squatters’ rights.

The judge described the house as in a total state of disrepair and virtual dereliction with no internal toilet or plumbed hot water, but he said Mr Flaherty was a man of modest and frugal tastes.

Mr Justice Hogan said, while Mr Flaherty had “failed narrowly” in his squatters’ rights claim, the court was not prepared to agree with the plaintiffs’ proposal of an order for possession to be granted on the basis Mr Flaherty could stay for another six months without paying rent.

The judge said he was prepared to allow a more generous period of 12 months without paying any rent, or two years on the basis of an agreed payment between the parties.

After an adjournment to allow for discussion of the judge’s proposal, Séamus Ó Tuathail SC, for Mr Flaherty, said his client was agreeing to the suggestion of 12 months without any rent.

The judge said the 12-month period could start on January 15th. He also put a stay to next July on his order awarding the plaintiffs one-and-a-half days of High Court costs in the event of Mr Flaherty wanting to appeal his decision.

The judge said both parties in this case were “victims of innocent circumstances”.

Ms Cullinan and Mr Dooley bought the house believing they had vacant possession which turned out not to be the case, while Mr Flaherty was “possibly lulled into a sense of complacency” over the last 15 years into believing he had acquired title.