Own House But Site Option

Ginger83

Hi, we were refused planning permission and were a bit down so I opted to buy a house for the time being. My partner wants me to have a crack at the planning once more as the planner who refused us have moved on. I bought the house in my name and the pp is in her but her income doesnt cover cost of site and construction. If I go ahead and am granted can I fund the site value only without construction costs for now to hold on to the house I have bought, any views, thanks

muffler

Sorry Ginger83 but I dont understand your question.

For example you say "the pp is in her but her income doesnt cover cost of site and construction but where is the link between planning permission and income. Sorry Im lost or I had one too may earlier

De_man

i think i've got it right (night duty)


your partner applied for pp and was turned down..
you bought a house in your own name & you now intend to apply for planning permission on the site....

okay, so for all purposes it's a new application....and basically (legally for the moment nothing to do with your partner)


You pay deposit to vendor (normally 10%)
purchase site subject to the grant of planning permission (via solicitor)
whilst at the same time apply to bank to release equity in your house
in order to purchase site...(normal lending criteria applies)

Bank will either approve loan or not (but will want to see the grant of planning permission as part of the condition of loan)


You apply for planning permission on site...(hopefully get planning permission)
no problem:D
(i think the legal stuff, deed of transfer etc etc should be left
for your solicitor to explain as this area is huge).

You may have a problem here, the vendor may now not even sell the site to you as he'll know "you've" already been turned down and therefore technically
devalued his land, if you apply, and get turned down .... so conditions to the sale of the site may be imposed.

Get and pay for a good draughtsman/architect/engineer or whoever you think is good at planning applications to assist you.

And ensure the reason why your partner was turned down is addressed prior
to making a fresh application!!

(Use a different address):D

Hope this helps

Ginger83

Thanks all,I must make the situation more clearer. I have a bought a house in my name yes, worth €255k but my mortgage is only €225k and the mortgage is in my name ownly.

My partner would be applying for pp in her name only as a sole applicant but can only raise a mortgage of €135k on her own. The site is €75k subject to pp so my deposit would be €15k which I have in cash.

If we joined together would it be possible for us to finance €60k from the bank to secure the site if pp is granted without financing futher costs for construction to allow us to hold onto the house I have bought for a while?
Is this possible to mortgage for a site only in our case?

De_man

Ginger83 wrote:

Thanks all,I must make the situation more clearer. I have a bought a house in my name yes, worth €255k but my mortgage is only €225k and the mortgage is in my name ownly.


My partner would be applying for pp in her name only as a sole applicant but can only raise a mortgage of €135k on her own. The site is €75k subject to pp so my deposit would be €15k which I have in cash.



This question would nearly be better off in another forum as it's really a financial question (askaboutmoney.com)

okay.. If the site is E75K what's the problem? give your partner the 15K to buy the site subject to planning...once the planning problem has been addressed fully let her apply again for planning permission on her own and with a bit of luck she'll get the permission.

Once the planning permission has being granted you can either release some equity in your home or get a loan to buy the site only

If you intend to develop the site immediately apply jointly for another mortgage
(i'd be banned for advertising but a major building society specialises in these purchases, a couple of free phone calls will sort it out)

(Ensure the reason why ye were turned down is sorted? as the previous
application will be taken into account with the new application..
I reckon buy a County House Design Guilde!!!


If we joined together would it be possible for us to finance €60k from the bank to secure the site if pp is granted without financing futher costs for construction to allow us to hold onto the house I have bought for a while?
Is this possible to mortgage for a site only in our case?

In short yes it's no problem, to make it easier, i reckon you release equity
in your home say 30K and your partner gets a loan for 30K it creates a commitment:) But if your partner works earning a reasonable wage i don't see
any reason why she can't get the loan on her own - worst case sceanario you must go to the credit union - phone your mortgage company tomorrow morning and get this sorted

For me the main issue...your partner is putting a huge emphasis on
the fact that the "big bad planner" has moved on.. from my experience they
have rules and rules are rules!

You and your partnet must ask yourselves objectively, can and have you addressed the problems associated with the previous planning application..could you change house type etc etc?

Sometimes it's easier to walk away from a site ( i had been looking for a site over 1 1/2 years) and try for another


best of luck

Ginger83

Thanks for your reply. I do agree it is a financial question. My main worry was the applying to the bank for site price only without a mortgage for construction costs to hold onto new house and hold onto the site while maybe dropping the floor in out of funds from my own pocket. The site would be worth considerably more in value than €75k if the pp was granted, possibly around the €200k mark. I will look into it, thanks again for your help.

muffler

It is a financial question so I will have to move it but I will leave a re-direct as there were several replies - not sure where to send it but I will start with accommodation & property