Your property questions answered
Is it a garden or is it a site?
Q Two years ago, we put our late parents’ house on the market and on the advice of the estate agent at the time listed it as house plus site (it has a significant side garden, a similar plot on the same estate had been built on). A sale fell through and for various reasons we took the house off the market. We are now putting it back on but two estate agents have advised us to sell without mentioning the site potential and at a significantly reduced price – we understand the price reduction. Our view is that the site exists so why not fence off the site, sell the house separately and wait until the market picks up and then sell the site?
AIs it a site or is it a garden? During the boom it was not unusual, as you have seen from your parents' neighbourhood, for gardens to be viewed for their development potential. However, a large garden in an established estate is now more likely to be viewed as just that – a large garden. The plus is that this increases your house's desirability because growing families like large gardens and there is the potential to add on a conservatory or extension. It also gives your house the edge on other houses in the estate with more modest gardens – and in this market you should be pleased to have any edge. You could of course fence off the site – with the involvement of your solicitor and an engineer to redraw the site and wait it out as you suggest but it is likely you would be significantly reducing the attractiveness (and price) of the house for prospective buyers – not least because no one likes buying a house when they don't know what is going to be built next door, or when it is going to be built. Work with local agents who know what's moving and what's not and take advice from them.
Is paying half our mortgage enough?
Q We could not afford the full amount on our mortgage this month, so rather than having the direct debit declined, I cancelled it and paid half the amount. No word from the bank yet. Can we take it that they have agreed to this new reduced amount?
AAbsolutely not. we would be astonished if in the week it has taken us to answer your query the lender has not already made contact with you. You cannot change your repayments unless the change (and the new terms and conditions that go with it) have been agreed in writing by the lender. The lender will now most likely view you as being in arrears. You need first to answer any correspondence you get from your lender and if none has arrived yet you should initiate contact to discuss the matter. Then, familiarise yourself with the Code of Conduct for Mortgage Arrears on the website of the Financial Ombudsman. It outlines what you can expect to happen next and the options that might be open to you. All cases are different (as any arrears planning must take in your other debts) and while the new Code is there to offer people in arrears some protection, you must engage with your lender before any protection kicks in.
Your questions
Send your queries to Property questions, The Irish Times, The Irish Times Building, 24-28 Tara Street, Dublin 2 or e-mail propertyquestions@irishtimes.com. This column is a readers’ service and is not intended to replace professional advice.
