Q We’re planning to extend into the attic, creating two extra bedrooms on a four-bed house. Although we can’t sell the house as a six-bed in the future, is this likely to increase our property tax?
A Converting attics, although a very regular occurrence, can be a very complex matter. The first issue to consider is the type of roof. Basically there are two categories – traditional timber roofs and prefabricated trussed timber roofs. The traditional type roofs are generally easy to convert and can be completed at a cost of about€15,000 to €16,000. In reality, the majority of houses, particularly in typical housing estates, are of the prefabricated trussed type. This type of roof is very effective in that there is a minimal amount of timber, which creates a good economy for the builder at the time of construction, however unfortunately they do not lend themselves to easy conversion. Unfortunately many builders don’t realise this and roofs are often converted without proper thought given to the structural design.
A trussed roof should not be converted without first seeking professional advice from a structural engineer as there will be a serious risk of damaging the roof. If a trussed roof has been converted and this has not been properly done and is not signed off by an engineer, then the subject property is actually worth less than if the property was not converted at all. The approximate cost of carrying out a conversion to a prefabricated trussed timber roof is more likely to be in the order of €25,000, as you are effectively building a separate roof inside the existing roof structure.
The other issue to consider is that of ‘regulations’ and this is related to the question of whether the converted space is a “habitable” space or storage space. If the converted space is intended to be a proper habitable space, ie a livingroom or bedroom, then there are a whole host of building regulations to be complied with which will add even further cost to the construction costs. However if the converted space is just being considered as a storage room, then most of the regulations can be avoided. The majority of converted attics in Dublin are non habitable space, and in our practical experience, a frighteningly high proportion of these have not been done properly, and thus, it is extremely important to ensure that the attic conversion has been properly signed off in the first place and that you get a proper survey done to ensure that you are not acquiring a problem.
With all the above in mind, and assuming that the attic conversion has been carried out to a proper standard, then I do feel that you could expect to pay approximately €25,000 more for a house that has been converted over and above a similar house which has not been converted.
Val O'Brien is a chartered building surveyor and a member of the Society of Chartered Surveyors Ireland
Q Due to the increase in costs associated with being a landlord over the past couple of years, we have decided to sell our rental apartment. We have tenants in situ (another five months remain on the lease). What is the procedure and will it affect our chances of selling the property?
A You do not state in your query whether the lease with your tenants is a fixed term lease or a standard lease. Under a fixed term lease the tenants have security of tenure until the expiry of their lease. If the lease is a standard lease under Part 4 of the Residential Tenancies Act 2004 than you have the right to issue notice of termination to the tenants if the property will be going for sale within the next three months. The period of notice that is required depends on the duration of the tenancy to date from a basic 28 days for an occupancy of less than six months to 112 days for tenants who have been in situ for more than four years, all details of notice periods can be found on prtb.ie. Notice of termination must be issued in writing stating the reason for the termination and the date by which the property must be vacated.
It is common for properties to be marketed and even sold with tenants in situ and some investors prefer this as they will have an income generated from day one, however it will not suit an owner occupier. In an ideal world you would sell the apartment vacant and done up for sale so that it is viewed by potential buyers in its best light, but this may not be possible due to the aforementioned tenancy or for financial reasons. The key to selling an apartment with the tenant in situ is to get the tenant onside from the beginning as you will be relying on them to present the apartment for viewings and to be flexible and helpful allowing access. Many landlords will offer the tenants a rent reduction for the duration of the sales campaign in return for their co-operation; another option might be to offer them a voucher of some sort on successful completion of the campaign. I would also recommend using an agent with experience of selling properties with tenants in situ as the agent’s relationship with the tenants can be key in achieving a successful sale.
Rowena Quinn is a member of the residential agency professional group of the Society of Chartered Surveyors Ireland
Q My partner and I are house hunting and keep a keen eye on the property websites and the property price register to check for movement in prices on houses/ areas we like. How long does it take for a property that is sale agreed to be updated on the property price register? We were outbid on a house in south Dublin that went sale agreed in early March but there is still no sign of it on the register and we want to know how much it sold for. Any advice would be appreciated.
AThe fact that prospective purchasers can check the actual selling prices of properties is a clear benefit of the transparency the introduction of the house price register has brought about – you can now check to see what houses in your chosen area are actually being sold for, and benchmark these against the listing/asking prices. There are some small issues you need to be careful of when studying the property register. In a small number of cases, the prices are not the full market price and this could occur in a case where a property is being transferred from one family member to another. Furthermore, new properties that are sold include VAT at 13.5 per cent, and the price shown on the register is the price net of VAT. Finally, sometimes errors can occur as the data is taken from data which is filed electronically generally by the purchasers’ solicitor for Stamp Duty purposes with the Revenue Commissioners, but such errors are not common.
The property register itself is updated on a weekly basis. Many agents, however, report that the time taken to close a sale can be elongated. It could not be unusual for it to take eight to 12 weeks for a sale to complete. As the stamp duty return does not need to be filed for a month after the closure, it could potentially take up to four months for the house sale and information to appear on the register. However, I think that most sales would appear on the register within four to six weeks following the property going sale agreed. There are many reasons why sales can take longer to close; probate (the reason for many sales in Dublin at present) can be slow to finalise, there can be delays with banks finalising loan offers and issues can arise at contract stage which were not anticipated at the outset. I would also recommend calling the agent to ask what the property was sold for – if you were bidding on the house you are entitled to be told this – there’s no benefit to the agent of not disclosing the price as will appear on the property register sooner or later.
Ed Carey is a chartered surveyor and auctioneer and fellow of the Society of Chartered Surveyors Ireland, scsi.ie
Send your queries to propertyquestions@irishtimes.com
or to Property Clinic, 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.
