Looking at building

L1985

Hi guys.im just hoping someone can help me out a bit here. I will be going to all of the experts over the next few weeks but looking for some opinions here. I'm looking at applying for planning permission but I seem to be in a bit of catch 22. The land will be transferred to me when needed it if I get planning permission (yes I know I'm lucky to have a site I can use ). To get planning permission I need to submit house plans. My mortgage application isn't straight forward because there is a commission element that I doubt the banks will take into account but here is hoping.now I would like to know exactly how much I can borrow before submitting the application as the amount will be relevant to the house plans but will the bank look at it if the lands not in my name yet? Don't want to transfer the land if worst comes to worst and I don't get approval either....so what do I work on first?i know I could get the approval in principle but don't want to delay matters either by resubmitting it again.
Any advice will be helpful as I'm a bit clueless here. Thanks in advance!

fits

You can apply for planning without owning the site. You enclose a letter of permission from site owner with the application.
I think your first step could be to talk to a good broker who can advise you on how to get into a position for application. If the signs are good there, you can start thinking about design and getting plans drawn up.

Be warned though, building is not a cheap route to house ownership.

L1985

Thanks fits-that could work. Do the bank accept that as well? Have spoken to my broker and she said there is a slight chance they will look at the commission but she isn't sure. I know applying for a building mortgage is different to buying a house. I do know it's not the cheapest option but I need to be close to the home place.
Handle master to summarise-I don't want to transfer land until I know ive planning permission. To get planning permission I need to submit plans. To submit plans I need to know my budget and to see what the bank will approve. So q was what to work on first so that I that I don't get so far hit a brick wall and waste money on nothing. Hope that clears it up

riclad

Most people buy a site that has planning permission to build a house on it.
A bank might give you a loan if they see documents showing you have planning permission , the house will cost say 120k to build.With documents ,detailed house plans, from an architect/ builder saying house will cost 120k .
Say you buy a site for 10k, you could discover you cant ever get planning permission , for various reasons , its zoned agricultural land
or maybe its close to a river ,or the council might intend to build a road
nearby in 5 years time.
Or buy an old cottage for 30k, with esb,water connection, then ask for permission to modernise it,or build a new house on the same site.

Thats why farmland is a lot cheaper than land zoned for housing .

L1985

Sorry just to clarify-it's family land so I won't be getting in transferred until I know it's ok. Was looking at the modernising of an old house but tbh locations key for me and as such the only option is to build really with my budget.so basically banks won't give me a mortgage until I have everything else done up would that be right?

fits

You can apply for mortgage before planning is fully in place but in your position id be sounding out how much you can borrow first.

L1985

Will the bank be happy with giving me an amount provisionally depending on the planning permission going through? Thanks fits

fits

A good broker should be able to help you out there.

Gumbo

Most banks lending for house builds require that planning is in place before they give you a formal letter of offer.

Lodge planning with consent from current owner, and you will also need to satisfy the local needs assessment if required by the council.

What county is it?

riclad

maybe You could get a loan to modernise and enlarge the old house .
what is tbh location.?
say house costs 100k to build , you,ll need to borrow 80k at least, the bank may not give you a 100 per cent loan.
Interest on a loan is higher if its not a loan for just buying a house.4per cent at least

L1985

Kilkenny. So my catch 22 remains- ill have to go on the lower amount and pray that I get approved for higher. If I don't it's not the end of the world but would make my life easier!! Fingers crossed I get PP now.
My parents would prob love it but for my own sanity I think I need my own place!!!

riclad

OK so you want to build your own house, near the parents house.
So all you can do is get proper plans made , with documents re how much it will cost, and apply for planning permission .the council will take into account its your parents land .And wait and see if the plan is accepted .

TENHNY

Here some advice and info based on my experience!

First of all the new bank regulations to come into effect where you can only borrow i think it is -typical 3.5 times gross income - other members could confirm this, so it would be advise to use this to calculator mortgage amount,
If you get paid basis plus commission i would use pre commission to work out amount the amount they will loan you, if they allow you to use commission figure all the better. aib has online calculator to help you work out this.
Secondly, not all bank will loan for self Builds, that what they can them even thought you wont technically be building yourself, before decideling bank find out if they deal with new builds
Thirdly - they estimate the cost of build, they wont take your word that you can get it done for cheaper, this figure for me was €130 per square foot, when do i have friends in the trade where i would get discounts.How big are you thinking of building?
Next- Deposit is 10% , they dont take site value into it, plus and my bank wanted at least 10% continuous-incase you run into any unforeseen, (10% of cost of build *2) i,e they said house 1300 sqft(3bed bungalow basic) would cost 160k they wanted 32k saved.
You can apply for planning without owing a site its just has to be transferred before draw down plans estimate cost 2k plus?
New building regulations state you most get each stage signed of by verified engineer who for me estimate the cost at 10K(no avoiding this without sign off wont get the next draw down)

and to finish off all this positive info is, a lot of people i know never got to draw down the last stage of money as they hadn't the house at a level the bank was happy with, think last stage, gardens footpath etc has to be finished.

We decided to try and buy in the end, its not in perfect location, but was impossible to save all that deposit and pay rent, we wouldnt have it saved for another two years and at that stage i am sure the goal posts would have moved, best of luck

riclad

http://www.irishvernacular.com/description.html
info here , detailed plans to a self build house cost 25k .
http://www.irishvernacular.com/building-instructions.html
it uses wood frame simple design to keep cost low.
You can apply for planning permission before land is transfered to you.

JimmyMW

L1985 wrote: »

Hi guys.im just hoping someone can help me out a bit here. I will be going to all of the experts over the next few weeks but looking for some opinions here. I'm looking at applying for planning permission but I seem to be in a bit of catch 22. The land will be transferred to me when needed it if I get planning permission (yes I know I'm lucky to have a site I can use ). To get planning permission I need to submit house plans. My mortgage application isn't straight forward because there is a commission element that I doubt the banks will take into account but here is hoping.now I would like to know exactly how much I can borrow before submitting the application as the amount will be relevant to the house plans but will the bank look at it if the lands not in my name yet? Don't want to transfer the land if worst comes to worst and I don't get approval either....so what do I work on first?i know I could get the approval in principle but don't want to delay matters either by resubmitting it again.
Any advice will be helpful as I'm a bit clueless here. Thanks in advance!

Just apply for outline planning permission first in your name with the owners permission, if that gets granted you can transfer the site safely knowing you will get planning permission on the site, then approach the bank. Once you have the budget sorted with the banks then approach the design with your architect, also a piece of advice get a QS involved at design stage especially if the contingencies in the budget are tight.

db

L1985 wrote: »

Hi guys.im just hoping someone can help me out a bit here. I will be going to all of the experts over the next few weeks but looking for some opinions here. I'm looking at applying for planning permission but I seem to be in a bit of catch 22. The land will be transferred to me when needed it if I get planning permission (yes I know I'm lucky to have a site I can use ). To get planning permission I need to submit house plans. My mortgage application isn't straight forward because there is a commission element that I doubt the banks will take into account but here is hoping.now I would like to know exactly how much I can borrow before submitting the application as the amount will be relevant to the house plans but will the bank look at it if the lands not in my name yet? Don't want to transfer the land if worst comes to worst and I don't get approval either....so what do I work on first?i know I could get the approval in principle but don't want to delay matters either by resubmitting it again.
Any advice will be helpful as I'm a bit clueless here. Thanks in advance!

To get an idea of how much it will cost you, budget on €1500 /sq m. Meet with the mortgage advisor in your own bank and discuss what you are planning to do and try to get a sense of how much they will loan you. This will depend on your income, monthly expenditure, savings and probably a few other parameters that only the bank know. If you can get a good relationship with the mortgage advisor it will be invaluable.

If you still think you can build the size of house you want for the size of mortgage you can get its time to look at planning. This can cost you anything from $2K to $10K or more. You do not need to own the site before you get planning, as said above just get a letter from the land owner. You should plan for it taking at least a year from when you start the process until you start to build if everything goes well and another year until you are ready to move in.

Your site isn't costing you anything so you have that advantage but you will be lucky to build for less than what you could buy an equivalent house for and there are no certainties in the process. You need to be sure it will be worth it to start down this road as it won't be easy.

L1985

Firstly thanks everyone for all your replies-v helpful. I'll be building at around 1000sq ft max. Hoping to have a dormer style roof so I can build upwards when needed. I appreciate everyone saying it's more expensive but I really do near to be close to home and the other houses in our village are too pricey.The 1500 per sq metre is high and possibly over budget. It's something I need to consider. My hope is to do the extras with my commission etc as I go along. I'm fairly sure the banks won't include my commission but here is hoping. Location wise it's close to the road with electricity nearby and a pump already in place.i have 20% saved for the deposit so that should be ok.wont be easy I appreciate that but it will be worth it to have my own space.im relaxed about just having the basics for a few years and slowly get it to where I want it as well. Though I have to be careful about the re the bank I do appreciate that-I didn't think they would be as fussy!! Prob letting myself into a world of stress but anyway!!!