credit union loan to build extension

lucymo

Just wondering if you guys can offer any advice, i'm currently living in a mobile home on my parents property with baby and partner in tow, its a total pain, however on the bright side i have the offer of an old outbuilding that i can do up and build an extension on to, I really don't want the hassle of banks and mortgages and planning permission so what i was hoping to do is borrow €40k from the credit union to this end. I will have by this time next year €10k in savings. So what i wanting to ask is do ye think this is a good idea, is it possible also how could i approach the CU? I am in full time employment and have been for the past 5 years. Thanks.

chris85

lucymo wrote: »

Just wondering if you guys can offer any advice, i'm currently living in a mobile home on my parents property with baby and partner in tow, its a total pain, however on the bright side i have the offer of an old outbuilding that i can do up and build an extension on to, I really don't want the hassle of banks and mortgages and planning permission so what i was hoping to do is borrow €40k from the credit union to this end. I will have by this time next year €10k in savings. So what i wanting to ask is do ye think this is a good idea, is it possible also how could i approach the CU? I am in full time employment and have been for the past 5 years. Thanks.

Do you own the land? If not then why would you pump money into a property which you will not own.

Two things you mention you dont want the hassle of. Firstly mortgage, if you want this kind of money a mortgage is worth the "hassle" as the rates are much lower than a loan and thus you are paying far less back. Secondly you say you dont want the hassle of planning permission. This must be done regardless of where you get the money from. Some building work doesnt require planning permission for but this would be for you to look into.

lucymo

Thanks for the reply, I guess i should have explained myself a bit better in my post, you're correct in that i don't own the property but I would hope to at some stage in the future, I don't really mind if its not mine right now, i feel relatively confident that it will be at some stage, though I know you can never say never. I've checked this site out http://www.citizensinformation.ie/en/housing/planning_permission/planning_perm_altering_a_house.html
and I don't believe i will need planning permission as I won't be making any drastic alterations to the front of the building and intend to keep the little extension at the back below the roof line so I actually think I could legitimally get away with it, so do you think the banks or credit union would consider lending me or giving me a mortgage of say €40k?

chris85

lucymo wrote: »

Thanks for the reply, I guess i should have explained myself a bit better in my post, you're correct in that i don't own the property but I would hope to at some stage in the future, I don't really mind if its not mine right now, i feel relatively confident that it will be at some stage, though I know you can never say never. I've checked this site out http://www.citizensinformation.ie/en/housing/planning_permission/planning_perm_altering_a_house.html
and I don't believe i will need planning permission as I won't be making any drastic alterations to the front of the building and intend to keep the little extension at the back below the roof line so I actually think I could legitimally get away with it, so do you think the banks or credit union would consider lending me or giving me a mortgage of say €40k?

Ok unless you own the land you are building on you will not get a mortgage for it at all. Not a chance. Would not be a wise choice to build on land you dont own for a whole number of reasons.

In terms of a loan for €40k best to ask your CU/bank about this. Generally loans would be paid back over 5 years so payments would be high enough for it. The interest would be much higher than a mortgage.

Markcheese

We borrowed 20 grand from credit union to go towards our extension, but we had a loan history with credit union, which helped, go talk to them .... Some will some won't ....
If it was me I'd contact the planning office , if it's considered change of use or if a neighbour gets pissed off you could be a hassle ,

murphaph

You still need PP to change the use of an out building into a dwelling, regardless of the lack of structural changes to be made.

lucymo

Ok I see, I wasn't aware of that. I guess first things first and contact an engineer to get the ball rolling on that before i ever get a bank or CU to even look at me.