Cost of transferring one acre site

Annabananna

Can someone please advise the approx cost of transferring one acre site from my father to me. I know i have to get a solictor to carry this out and wondering the cost and also can anyone advise how a mortgage works once the land in my name do i still need to have a large amount of saving also. Many thanks.

Old Jim

I was quoted a price of 700 + VAT + Outlays. Just over 1K in total for the solicitor to do this.
Bear in mind Capital Acquisitions Tax liabilities on both yourself and the giver of the site although the threshold on Father to Son gifts might make this irrelevant. There could also be stamp duty to be paid.
Not too sure how the bank will view it but I'd guess that having the site in your name would reduce the amount of savings required.

19driver83

Annabananna wrote: »

also can anyone advise how a mortgage works once the land in my name do i still need to have a large amount of saving also. Many thanks.

I was in AIB on friday asking this. I thought that I could get a 100% mortgage once the site was in my name. However, they told me 92% was the maximum, however the 92% could include the fittings for the house, wardrobes, etc.

They also said that i could only draw down the mortgage when I had my own savings spent, i.e i was broke!

First step is to get an architect and get drawings for the house. From these the house build is priced up and this is the basis of the application. The money is drawn down in stages, through signs offs from your architect that certain works have been completed.

wclarke20

I paid about a grand last year. No other tax due such as CGT.
You will still need savings of your own as the site is not enough anymore.

wclarke20

19driver83 wrote: »

They also said that i could only draw down the mortgage when I had my own savings spent, i.e i was broke!

Was your savings not split up per each stage of the build and you had to spend it that way first?

19driver83

wclarke20 wrote: »

Was your savings not split up per each stage of the build and you had to spend it that way first?

I havent started building yet but what they told me in the bank is that I would have to spend my savings before I could draw down any mortgage.

You said that no CGT had to be paid, was that because you a green cert completed?

Was your only cost, the solicitor fees?

Aine Bui

19driver83 wrote: »

I havent started building yet but what they told me in the bank is that I would have to spend my savings before I could draw down any mortgage.

You said that no CGT had to be paid, was that because you a green cert completed?

Was your only cost, the solicitor fees?

the 92% is based on the market value of your house on completion. I have been quoted 1500 solicitor fees through out the mortgage, but that is not including the transfer of names on deeds as my other half already owns the land. You should not have to pay CGT, and I wouldn't imagine having a green cert will affect this as it is a site that you are transferring names on, not agricultural land.

wclarke20

19driver83 wrote: »

wclarke20 wrote: »

Was your savings not split up per each stage of the build and you had to spend it that way first?

I havent started building yet but what they told me in the bank is that I would have to spend my savings before I could draw down any mortgage.

You said that no CGT had to be paid, was that because you a green cert completed?

Was your only cost, the solicitor fees?

Nope no green cert. There's a thresehold on transfers between father and child. As long as the value isn't greater, no cgt is owed. Solicitors fees were my only fees.

There may have been something in the past 2 budgets which affected this. Maybe somebody else can confirm?

mmc2010

I had to pay 2% stamp duty and if the site was greater than 1 acre, I would have had to pay CGT also.

Innish_Rebel

mmc2010 wrote: »

I had to pay 2% stamp duty and if the site was greater than 1 acre, I would have had to pay CGT also.

I was also going to ask about stamp duty - I am having to pay it too.

I didn't think the CGT was linked to the size of site more the value?

fealeranger

I had a site transferred to me last week and here are the bit's that I know of.
If the site is tansferred to a blood relative(father to son) the stamp duty which is usually 2% is halved to 1%. As far as I'm aware the site must be less than 0.75 of an acre for this to come into effect. Gift tax comes into the scene if it is not a blood relative or the value being transferred is over €250,000. Gift Tax is 30%. get an auctioneer to value the site. Sites nowadays are between €30-€60,000. The lower the value the less the Stamp duty;). Solicitors can vary with price but you have to open a new folio get OS maps among other things. Allow up to €2000 for this(That was my cost but I had to do a few extra bits. Solicitor was €1000.). Make sure you have planning before you do anything as it is after tightning up again in council offfices in this sector. You are not guaranteed planning just because you are building on your own land which it a total and uttter disgrace in this country.

Innish_Rebel

fealeranger wrote: »

I had a site transferred to me last week and here are the bit's that I know of.
If the site is tansferred to a blood relative(father to son) the stamp duty which is usually 2% is halved to 1%. As far as I'm aware the site must be less than 0.75 of an acre for this to come into effect. Gift tax comes into the scene if it is not a blood relative or the value being transferred is over €250,000. Gift Tax is 30%. get an auctioneer to value the site. Sites nowadays are between €30-€60,000. The lower the value the less the Stamp duty;). Solicitors can vary with price but you have to open a new folio get OS maps among other things. Allow up to €2000 for this(That was my cost but I had to do a few extra bits. Solicitor was €1000.). Make sure you have planning before you do anything as it is after tightning up again in council offfices in this sector. You are not guaranteed planning just because you are building on your own land which it a total and uttter disgrace in this country.

Thanks - yes that sums up my situation with the stamp - 2% but as blood relative 1%, The only thing with the valuation of the site. Your auctioneer will be doing a valuation which you can use for this stamp duty but it also used by the bank for the calculation of loan to value. So a bit of a catch 22 - higher the site valuation the lower the LTV percentage, the higher the rate of stamp duty!!!

Annabananna

Many thanks fo all the imformative replies we have planning permission after 18 long months of fighting with Carlow Co. Council they were making it hard as i moved to dublin changed my adddress for bank statements and such and they said this was a signi was not committed to carlow. I nearly killed the planning guy who has since been moved he was the most ingorant man i met i had a meeting with him and my dad and would only talk to the man in the room not me. When asked why i wanted to move down i said i had got married had one child and another on the way and i wanted to let them grow in the country like i did. I was told then that not enough of a reaon to move home. So advise to anyone planning on building on own land dont change your address on bank statements.

fealeranger

You have a pm;)!

fealeranger

The banks want to see evidence of savings. Don't know how much but the time you are saving does make it easier. Don't even start on the planners:mad:. They are a law to themselves. Best get a local council and if possible a politician to help out but even at this you may struggle. I wouldn't like to have to go through planning permission again, it took me 2yrs and a month from the day I applied.

muffler

Thanks for your input fealeranger but can we stick to the topic please i.e. "cost of transferring one acre site"

Cheers.

fealeranger

Annabananna wrote: »

Can someone please advise the approx cost of transferring one acre site from my father to me. I know i have to get a solictor to carry this out and wondering the cost and also can anyone advise how a mortgage works once the land in my name do i still need to have a large amount of saving also. Many thanks.

Sorry for the ramble boss:o. Just meant to answer the question on the first post.

Troy McClure

Annabananna wrote: »

Many thanks fo all the imformative replies we have planning permission after 18 long months of fighting with Carlow Co. Council they were making it hard as i moved to dublin changed my adddress for bank statements and such and they said this was a signi was not committed to carlow. I nearly killed the planning guy who has since been moved he was the most ingorant man i met i had a meeting with him and my dad and would only talk to the man in the room not me. When asked why i wanted to move down i said i had got married had one child and another on the way and i wanted to let them grow in the country like i did. I was told then that not enough of a reaon to move home. So advise to anyone planning on building on own land dont change your address on bank statements.

<SNIP>

We got an mortgage with BOI. I have never heard of having to use your savings before you can drawdown. However we have had 2 drawdowns and wheras before you would get the full stage payments. We were told we would be given 92% of each stage payment. This means using our own savings at each stage payment. A mortgage application nowadays is like resitting the leaving cert! As for costs of transfer we paid just under 1k solicitor fee, plus valuation fee.

muffler

Troy McClure please read my post above.