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Is there a max land size for residential mortgages?

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  • 12-10-2017 6:10pm
    #1
    Kencollins
    Registered Users Posts: 567 ✭✭✭


    Hi all,

    I viewed a house today that sits on 3.5 acres of land. The land itself is pretty worthless, certainly lower quality agricultural land rather than gardens.

    The land has to come with the house to ensure privacy all round as the house is set back from the road.

    Does anyone know if lenders provide restrictions on the plot size, or will any size be considered provided that the house valuation is in line with the purchase price?

    Thanks!

    Ken


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    #2
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    There isn't really a yes/no answer to your question- it depends on the valuation that an independent valuer on the bank's panel places on the property (as a unit). You can have 3.5 acres of lawns- if you really want to- however, whether, or not, a valuer sees this as somehow adding value to a property- remains to be seen.

    There are now lender rules regarding site sizes (that I'm aware of).


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    #3
    Lumen
    Registered Users Posts: 31,080 ✭✭✭✭Lumen


    There are tax implications as CGT exemption maxes out at one acre so it's not unusual to separate into two sales so that the values can be tracked separately.

    Not sure how that would relate to lending though.


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    #4
    Kencollins
    Registered Users Posts: 567 ✭✭✭Kencollins


    Thanks for the replies!

    The house itself is quite big, so the purchase price would match the value of the house.

    Most of the land around the house would be damp and full of rushes. It adds to the character of the house really, makes the finished lawns stand out!

    Hopefully the seller will be able to keep it all as one transaction, as I can't afford to pay 20% deposit AND purchase the divided out land too!

    Ken


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    #5
    the_syco
    Registered Users Posts: 37,301 ✭✭✭✭the_syco


    Kencollins wrote: »
    The land has to come with the house to ensure privacy all round as the house is set back from the road.
    Kencollins wrote: »
    Hopefully the seller will be able to keep it all as one transaction, as I can't afford to pay 20% deposit AND purchase the divided out land too!
    Consider making it a condition of sale, as you're buying the house because the land gives you privacy.


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