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Building new house at side of existing house - slightly different question...

  • 19-02-2009 8:58am
    #1
    gc2006
    Closed Accounts Posts: 24 ✭


    Hi all - I own a house in Dublin 12 which has room on the side to build a 2 bed house. This house is in my own name. I am looking to build a 2 bed, seperate house on the side of this. This has been done on our road so their is a precedent there. I have done up the costings and know what I need to build this house.

    As my mortgage is quite high it's unlikely the bank would give me the money / mortgage required for this build. However, I've been living with my girlfriend for quite a while and she would be able to comfortably able to get a mortgage to fund this build. However, the deeds of the house are in my name. The option exists to put her on the deeds of the house, and the only real cost would be the solicitors fees as she's a FTB, but what would be preferable (at present she has no mortgage, so the bank would easily give her the money. however if we went in together my mortgage + this mortgage might be too high for us to take on together. The reason being my salary has decreased a bit since I got my mortgage and now I doubt the bank would touch me on my own, if I was applying again for what I currently owe)

    My questions are:
    1 - does the site need to be in your name, or partially in your name to get a build mortgage? So the site would need to be in (or half in) her name?
    2 - if so, how would I got about her ending up with all, or half of the site. Am I right to say the options are either:
    - she goes on the deeds (as mentioned before this isn't ideal)
    - OR she buys the site from me. In which case I guess you need to get PP, a market value and I'd have some sort of tax implication
    3 - if so what would the tax implication be? Is it 20% cap gains OR if I was able to show that selling the site devalued the current property etc, could that be offset on the cap gains? So if house worth 350 now, and 320 after site sold, and site sells for 100k (for example) how would that end up?]

    Again adding to the deeds is not the favoured idea, so if we did want her to get the site (or some of it) how would that work?


Comments

  • #2
    spockety
    Moderators, Education Moderators Posts: 5,531 Mod ✭✭✭✭spockety


    You should look to get outline permission first, just because you think there is precedent on your street does not necessarily mean the planners will give you permission. I'd suggest talking to your local area planner (it's free) to get an idea of whether they even think it's a goer or not, before even thinking about how it would technically work, as you may end up disappointed.

    Read the local area plan, I think D12 is South Dublin county council, and they have pretty strict rules about building a new house in side garden. Minimum distances between houses, no terracing of semi d's, minimum rear garden size, minimum number of car parking spaces, etc., etc.


  • #3
    dny123456
    Closed Accounts Posts: 431 ✭✭dny123456


    I'd guess OP is in crumlin, D12... Very common for the second house to go in the end of terrace. Generally lots of room for it.


  • #4
    gc2006
    Closed Accounts Posts: 24 ✭gc2006


    yeah is that part of the world alright. Can I ask the question a little differently?

    What is the tax implication of selling the site (at the side of my house) to my girlfriend so that the current deeds would stay as is and she then owns the site at the side, onto which she could get a mortgage and build the property.

    To take round numbers - say the house is worth 350, and will drop to 320 once side garden is gone. Say the house being built, when complete will be worth 250k, and we get the site valued at 70k.

    Would i pay tax at 40% on 70k, 20% on 70k or something taking into account the loss I'd have made on mine etc?


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