EXPERTS EXPLAIN: Ask our experts for advice on your property problems
I'm not selling my house but would like a valuation
Q I WANT to get my house valued but only tentatively. We are considering downsizing, but haven’t yet made up our minds. Will an agent/valuer do this for free, or how much will it cost?
A A PROPERTY AGENT will be happy to call to discuss selling, with a first consultation being free. During the boom, a property transaction was usually very straightforward, with a sale almost guaranteed.
Things are somewhat different now, with the first question usually being, Is there anyone who would even look at my house?, before any discussion of the price.
My own experience is that the conversations now surround the mechanics of moving. In other words, do you have a mortgage, are you in negative equity, do you have a proposal for making up the difference between the mortgage amount and the eventual selling price, will you need some form of finance to purchase the new property and will the bank give you such finance? Just because your circumstances have not changed and your repayment record is impeccable with the bank, there is no guarantee whatsoever you will be granted finance. The banks are starved of finance and are only lending to certain customers.
We frequently find that selling is not an option for our clients, so we look at other options, such as “rent-to-rent”, whereby we rent your property here, and you then rent in the location of your choice.
We find first consultations take far longer than they used to but it’s a service we gladly provide at no cost.
You could call three property agents, confirm there will be no charge for the consultation and run with the agent that best suits your needs – not necessarily the one who prices your house the highest or quotes the lowest fees. Also, you should check to see if they are a member of a professional body. You should look for an agent who you feel you can work with in what may well be a protracted sales campaign.
** Ed Carey is a chartered surveyor and chairman of the Residential Property Professional Group of the Society of Chartered Surveyors Ireland, scsi.ie
Could we have problems later if we buy house from a receiver?
Q HOUSES ARE for sale near us in a scheme of new homes at very good prices, but the agent is selling them for a receiver because the developer has gone out of business. Could this create any problems for us if we buy one of the houses? Would there be anyone around to fix things if necessary?
A THIS READER doesn't say what stage the development is at or whether it is an apartment block or housing development. However, to answer your question, in many cases it can be taken as a positive that a receiver has been appointed, as by their nature and their own professional obligations, they will always ensure that all legislation and planning guidelines are strictly adhered to.
Furthermore, as the receiver is often put in place by the financial institution, they will have access to funds to complete the development. It is also likely that they will be put in charge until all units are sold and will therefore ensure all works are carried out to make the scheme planning compliant and to ensure that contracts are signed and closed. Be aware that if the builder goes into receivership then the “homebond” will fall away.
But a receiver will usually cover this by putting a new policy in place. Check with the property agent or receiver that this is the case. You should also have a full building survey carried out by a professional who will provide a comprehensive report outlining all of the key issues in relation to the structure of the building as well as snagging issues and will highlight what needs to be done to rectify such issues. The purchaser should ensure that any structural or snagging issues relating to the house are attended to before completion of the sale.
** Mark Reynolds is a chartered surveyor and member of the Society of Chartered Surveyors Ireland, scsi.ie
Can I convert a warehouse for residential use?
Q CAN I CONVERT a small industrial warehouse for residential use? The building is in an Objective MTC zone and residential use is permitted in principle.
A PLANNING PERMISSION is required to convert an industrial warehouse to residential use. Not withstanding the fact that such a use may be permitted in principle under the zoning objective for the site, the local authority will consider myriad other factors in determining the suitability of such a proposal including design, open space, access and residential amenity. There may be concerns regarding the appropriateness of a residential development if the area is primarily characterised by industrial development. It may be considered premature until a masterplan which considers the future use of adjacent properties is prepared and a phasing programme is agreed with the planning authority.
The relevant development plan for the area will list a number of specific development control standards that must be met for various types of development, including residential development. If apartments are proposed, there are also a number of specific standards required in terms of minimum room sizes. If such a proposal is progressed, we would suggest that an initial feasibility plan is prepared which fully considers the site context and all relevant development standards set out in the development plan. This plan should then be presented to the local authority planning officer for a more detailed discussion about the suitability of such a proposal from a planning perspective.
** John Spain is a chartered surveyor and member of the Planning and Development Professional Group of the Society of Chartered Surveyors Ireland, scsi.ie
Can I get a 'vendor take back' mortgage?
Q IN PARTS OF Canada and the US, it is possible for a vendor to negotiate a “vendor take back” mortgage: rather than the buyer taking out a mortgage, the seller agrees to give the buyer a loan. Lawyers negotiate an agreement covering the deposit, term of loan, monthly instalments and the interest, which is usually a bit higher than bank rates. It works for sellers who dont need all the proceeds of a sale immediately. Is this/could this type of mortgage be legal in Ireland?
A I HAD TO DO a bit of searching to find “vendor take back” mortgages. I don’t think it’s a question of whether such a mortgage is legal in Ireland or not – I can’t think of any reason why it wouldn’t be legal, but it’s a question of whether or not such a loan would be possible.
In the first instance the VTB loans seem to be directed towards investment properties, not necessarily in prime locations, where a potential purchaser may have difficulty obtaining mainstream finance and where the property is not selling quickly.
The main feature seems to be that the seller provides some of the purchase price or part of the deposit to the buyer and the buyer obtains the balance of the finance from a bank. Effectively it’s a rebate to the buyer in some shape or form.
I can’t see a bank cooperating as the purchaser cannot demonstrate to a bank that he has accumulated the deposit by his own means (ie savings), and the issue for the vendor may well be that the reason he’s selling in the first place is that he has cash-flow difficulties.
** Ed Carey is a chartered surveyor and chairman of the Residential Property Professional Group of the Society of Chartered Surveyors Ireland, scsi.ie
Send your queries to propertyquestions@irishtimes.com or to Property Questions, The Irish Times, 24-28 Tara Street, Dublin 2.
This column is a readers’ service. Advice given is general and individual advice should always be sought
