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Help to buy scheme 2021

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  • 07-01-2021 7:43pm
    #1
    Scoby 91
    Users Awaiting Email Confirmation Posts: 4 ✭


    Hi there I am just about to send in an application for a house build. I got accepted for hep to buy last year. But I have to reapply again for 2021. It will be a 2140 square foot house. Nothing fancy in the design.

    My issue is you have to be borrowing 70 percent of the value of the house. I can only borrow 180000 off the bank so that means the valuation of the house can not exceed 255000 from the valuation man from the bank.
    I'm afraid that if the guy values the house over 255000 I will loose out in the 20 grand from help to buy which will be a huge blow. What should I do to try and guarantee the house isn't values more than 255000 euro???
    Also what is the current going rate for a contractor vs direct labour per square foot? I'm in the limerick region


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    #2
    Frozen Veg
    Registered Users Posts: 513 ✭✭✭Frozen Veg


    Scoby 91 wrote: »
    Hi there I am just about to send in an application for a house build. I got accepted for hep to buy last year. But I have to reapply again for 2021. It will be a 2140 square foot house. Nothing fancy in the design.

    My issue is you have to be borrowing 70 percent of the value of the house. I can only borrow 180000 off the bank so that means the valuation of the house can not exceed 255000 from the valuation man from the bank.
    I'm afraid that if the guy values the house over 255000 I will loose out in the 20 grand from help to buy which will be a huge blow. What should I do to try and guarantee the house isn't values more than 255000 euro???
    Also what is the current going rate for a contractor vs direct labour per square foot? I'm in the limerick region

    Talk to your local auctioneers that are on the valuers panel, they will sort it for you.


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    #3
    Scoby 91
    Users Awaiting Email Confirmation Posts: 4 ✭Scoby 91


    Frozen Veg wrote: »
    Talk to your local auctioneers that are on the valuers panel, they will sort it for you.

    I did today and he said I will be pushing it with the site included in the value it will be very tight. I might need to redesign a small er house to make sure itm think


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    #4
    Faiche Ro
    Registered Users Posts: 138 ✭✭Faiche Ro


    Sorry to be the one to break this to you but the HTB gives you an amount equal to 5% of the valuation (the valuation provided by the auctioneer to the bank) OR 20K, whichever is lower.
    So you’ll only get the full 20k if the valuation is 400K or above (up to 500k - once it goes over 500 you no longer qualify for the HTB)

    So if the valuation comes is at 250K you’ll only get 12,500 euro.

    Sorry one other thing - This is what it was last when when I applied- not sure if the limit has been increased to 30k or not, there was some mention of it in the media around election time.


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    #5
    Scoby 91
    Users Awaiting Email Confirmation Posts: 4 ✭Scoby 91


    No it's now at 10 percent and 30k max so il get the 22K. But inly if my house gets valued below 255k as I am borrowing 180000.

    When did you do your house??
    Faiche Ro wrote: »
    Sorry to be the one to break this to you but the HTB gives you an amount equal to 5% of the valuation (the valuation provided by the auctioneer to the bank) OR 20K, whichever is lower.
    So you’ll only get the full 20k if the valuation is 400K or above (up to 500k - once it goes over 500 you no longer qualify for the HTB)

    So if the valuation comes is at 250K you’ll only get 12,500 euro.

    Sorry one other thing - This is what it was last when when I applied- not sure if the limit has been increased to 30k or not, there was some mention of it in the media around election time.


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    #6
    Faiche Ro
    Registered Users Posts: 138 ✭✭Faiche Ro


    Scoby 91 wrote: »
    No it's now at 10 percent and 30k max so il get the 22K. But inly if my house gets valued below 255k as I am borrowing 180000.

    When did you do your house??

    Ahh very good - apologies, i just kinda winced when i read your post cos the process is so hard and full of setbacks i was afraid you'd have counted on that 8 grand and not get it.

    Happy days so - best of luck with the process....

    (i applied for HTB back in 2019)


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    #7
    Tarzann
    Registered Users Posts: 209 ✭✭Tarzann


    Hi Scooby,
    I'm in the same boat with very similar figures to you, including planned house size, been gifted a site and looking to build a house that is VERY roughly estimated at 280,000 for builders finish.
    I'm reading that you get the payment after the first mortgage drawdown during the build so is this on the basis of meting the 70% LTV on the completed house.
    I have been talking to a mortgage broker and will do again. His advice was borrow the max allowed, even if not needed due to savings, and then use savings / HTB rebate to pay a lump off the mortgage in the first 1-2 years.

    One thing that was roughly advised to me is to try not to use one contractor for everything. This didnt mean the direct labour route but if some work can be allocated elsewhere (and maybe for cash!) then the main builder's quote can be brought down which is a help in justifying the value. I know this is a bit vague here and I will be enquiring further

    My main advice is to get a local mortgage broker as they'll have seen the scheme in action, so to speak, and can advise on the auctioneers who are on the bank's valuation panel and take it from there.


    Per square foot: Our architect has estimated 130 euro per square foot for builders finish (With contractor). Waterford area


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