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Self Build

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  • 17-01-2011 4:31pm
    #1
    Smurf11
    Closed Accounts Posts: 3 ✭


    Hi

    Brand new to this so just looking for a little advice or guidance.

    Myself and my boyfriend are looking at building a house down the country and we were thinking of approaching the banks to start building a house but heres the situation:

    - My boyfriend is a month out of work the past month (unfortunately he works in the construction trade)
    - He owns a piece of land worth approx 100k
    - His earnings last year would have been about 60k but he hasnt been working this January.
    - I own an apartment three years ago, bought in Dublin through the affordable housing scheme so its not in any negative equity.
    - My mortgage repayments are currently about 720pm
    - I have a full time permanent job with a salary of about 51k

    What we would like to do is get a mortgage for about 120k (which works out at approximately 420pm repayments). He would start the building while he is not working, I would remain in the apartment while its being built and look at renting it out completely or selling once the house is built. I can easily cover my mortgage now and I could rent a room out in the apartment for about 400pm, which means I could pay the other mortgage aswell ... is this something that the banks would consider?

    He has never bought before ... I dont no if this makes a difference yet with stamp duty or things like that I have still to do my homework.


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    #2
    D3PO
    Registered Users Posts: 7,879 ✭✭✭D3PO


    1. Joint mortgage/ second mortgage = stamp duty to be paid as your not an FTB
    2. You cant rent out your place without owing a clawback on the value. You need to read your affordable housing terms.
    3. The banks arent lending.
    4. Even if you could get a loan I dont see you calculating taxable rental income, loss of TRS, NPR payments etc into your figures, not have you calculated unoccupancy of tennancy. More rentals than tennants you might not even find a tennant.

    In essence forget about it. Your wasting your time. Sorry to be so abrupt but its the case Im afriad.


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    #3
    sparkplug
    Registered Users Posts: 33 ✭sparkplug


    besides the financial side of things there are some planning issues. With the 'local needs' criteria for one off houses you cannot of owned a house before so this would mean you would have to apply for the planning in your partners name. The mortgage then would have to be issued to the person who owns the site and has obtained the planning. The criteria may be slightly diffrent in the case of affordable housing, your local Co.Council should be able to provide you with information regarding planning in the area.

    The whole planning process is a nightmare.....and on pt 3 of the previous poster
    we have been unable to get a mortgage for the past 5 years and have been approved this year??!!...so the banks are still lending. Granted it's more difficult but they will lend if your the right candidate.


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    #4
    D3PO
    Registered Users Posts: 7,879 ✭✭✭D3PO


    sparkplug wrote: »
    besides the financial side of things there are some planning issues. With the 'local needs' criteria for one off houses you cannot of owned a house before so this would mean you would have to apply for the planning in your partners name. The mortgage then would have to be issued to the person who owns the site and has obtained the planning. The criteria may be slightly diffrent in the case of affordable housing, your local Co.Council should be able to provide you with information regarding planning in the area.

    The whole planning process is a nightmare.....and on pt 3 of the previous poster
    we have been unable to get a mortgage for the past 5 years and have been approved this year??!!...so the banks are still lending. Granted it's more difficult but they will lend if your the right candidate.

    yes it was a sweeping statment, but much easier than explaining that the OP wont get a mortgage as she already has one, doesnt own the site yada yada yada

    either way they aint gonna get a mortgage if hes out of work and she has the mortgage and income that she has. :cool::cool:


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    #5
    Smurf11
    Closed Accounts Posts: 3 ✭Smurf11


    Thanks guys for the replies (no offence to your being abrupt ... thats exactly the kind of advice I need as Im literally just starting to look into it and it does help me narrow down what things I need to research).

    Im familiar with the affordable housing scheme - Im allowed rent out a room while Im owner occupier ... I would have to sell it if I wanted to move out alright (although I have heard rumours about county councils - e.g Final Co Co allowing people to rent out their affordable homes)

    The site was bought off of his parents and has full planning permission - we are going about putting into our names.

    Ive also heard of a few people getting the go ahead for mortgages.

    So essentially the other half needs to be working you dont think they would go for him working on the house ... I thought as much myself :-)

    Thanks for the replies.


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    #6
    Smurf11
    Closed Accounts Posts: 3 ✭Smurf11


    And excuse my ignorance but what is TRS and NPR payment.


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    #7
    D3PO
    Registered Users Posts: 7,879 ✭✭✭D3PO


    Smurf11 wrote: »
    And excuse my ignorance but what is TRS and NPR payment.

    TRS - Tax relief at source. If renting you wont be entitled to it, but if your renting a room ignore me as your still entitled. I assumed you were moving into this new build.

    NPR - Non Primary residence. If the mortgage and therefore (fair assumption) the deeds are in both names this is essentially a second house you would own therefore you would have to pay the €200 a year NPR charge not much but you need to calculate all your costs etc. No harm in having all the facts :)


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    #8
    sparkplug
    Registered Users Posts: 33 ✭sparkplug


    happy days if you have a site with full planning your a lucky woman!! don't be put off by everybody saying you won't get a mortgage , it is relatively easy to apply and find out where you stand. Get a good broker, most of them don't charge and have a talk with them and get them to apply. TRS is Tax Relief at Source it is a discount persay on your monthly mortgage repayments, don't know the whole ins and outs of it but it is worth about 100 euro a month to us on borrowing 140k.
    NPR...haven't a clue??
    On your bf working our broker had said to us if you've been in continuous employment for a number of years and just have a short break then get re'empoyed on a permanent contract etc that thats acceptable to some lenders. so it's not all doom and gloom, just not as easy as a few years back when they we're just short of giving away mortgages free in packs of Tayto!!!


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