The Irish Times Property Desk answers some of your property queries. This week Redundancy and Quick sales.
I am being made redundant
In September I put a deposit on an apartment that will be completed in February. I made sure that I was cleared for the mortgage before I put the deposit down. My circumstances are about to change - I am being made redundant at the end of November. I want to go ahead with the purchase; if I can't get employment immediately I intend moving back home and renting out the apartment. I do not intend telling the bank about my redundancy - what are the implications for me if the bank subsequently discovers my redundancy?
• You have to inform the bank of any change in your circumstances before you draw down the loan, though if it loans you the money without checking you out fully then it's difficult to see the bank doing anything once you make your repayments. Lending institutions have been told to tighten up their mortgage lending policies in every respect so, while it was common for people to apply for a loan and draw it down later without providing further documentation, this may not be the case now. You may find that by the time February comes you will be asked to submit current financial statements (pay slips). Your plan is potentially dangerous as, if you take the mortgage and remain unemployed, you'd be at risk of losing your apartment. As for renting: it depends on your loan-to-value ratio (how much of the purchase price you borrow) but if it is high - say 90 per cent - then in the current climate the rent you receive will fall short of your repayments. A few months of making up the shortfall would seriously dent any redundancy payments you get. You probably are still in shock at the redundancy news. Instead of thinking what might happen in February, look at your current situation. What kind of deposit did you put down - a couple of thousand booking fee or a 10 per cent deposit. The former you can walk away from, the latter commits you with going through with the sale. On schemes where there has been a high demand, builders have refunded even this deposit, knowing that they can sell the apartment anyway. The first thing you should do is find out where you stand vis a vis pulling out of the deal. Think hard before committing to a loan.
Keen to sell quickly
We will be selling our house in Lucan and are keen to sell quickly. It is four years old and there are two other houses in the estate for sale at the same price. Would including curtains, carpets and appliances improve our chances of a quick sale at a better price. No agent we approached gave us clear advice.
• Appliances have poor second-hand value so don't expect them to add much to your asking price. (There are exceptions, like American-style fridges, industrial-type washing machines, and Aga.) Quality carpets and curtains are an attractive proposition and should add value - but only if they are neutral taste-wise. If you went over the top in the swag department, potential owners might not be interested. Concentrate on making your house stand out from the rest - start by cleaning from top to bottom; make sure there are no smells (doggy, cooking, etc); remove extra furniture, like coffee tables, that are large and extra chairs in rooms; tidy the gardens; pay special attention to the kitchen and bathroom, de clutter worktops, replace broken tiles, mouldy shower curtains, and consider giving these rooms a fresh coat of paint.
Send your queries to Property Questions, The Irish Times, 10-16 D'Olier Street, Dublin 2 or e-mail propertyquestions@irish-times.ie.
Unfortunately, it is not possible to respond to all questions. The above is a representative sample of queries received. This column is a readers' service and is not intended to replace professional advice. No individual correspondence will be entered into.
