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Cottage Transfer + Build

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  • 08-01-2015 12:05pm
    #1
    southie_anseo
    Registered Users Posts: 43 ✭


    Hi Everyone, new here and have loads of questions hopefully someone might be able to answer some or guide me in the right direction.

    My mom has an old cottage lived in last in the 1950 belonged to my grandparents, its a typical cottage of that era, two rooms no toilet, water connection, electricity connection.

    She has kindly decided to transfer the owner ship of this cottage to myself and partner in the hopes we could, re-build or build a completely new cottage on the site. I understand we will have to pay so form of inheritance tax?

    how will we decide on the value of the building?
    What must we do to tansfer it under my name?

    i have heaps more questions but i don't want to push my newbie luck just yet, Thank you for the help ;0


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    #2
    BryanF
    Moderators, Home & Garden Moderators Posts: 10,140 Mod ✭✭✭✭BryanF


    might be better answered here


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    #3
    Michael D Not Higgins
    Moderators, Society & Culture Moderators Posts: 7,223 Mod ✭✭✭✭Michael D Not Higgins


    Sounds like questions for a solicitor. We can't give legal advice.


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    #4
    southie_anseo
    Registered Users Posts: 43 ✭southie_anseo


    where?


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    #5
    Ri_Nollaig
    Registered Users Posts: 2,297 ✭✭✭Ri_Nollaig


    I was kinda on the same boat, was gifted a site from my mother to build, so speaking for my experience.

    You will need a solicitor [and can't be the same as you mothers!] anyway if you go ahead with this so you may as well get started on that first.
    Basically, the solicitor will draw up the transfer documents and will want an auctioneer to value the site/house for tax purposes. That solicitor will then send the documents to your mother's solicitor to complete the transfer. Also the point where you will pay any tax is necessary. Two solicitor's used to avoid conflict of interest.

    Check out http://www.revenue.ie/en/tax/cat/thresholds.html to find out what kinda inheritance/gift tax you might be facing, hopefully none [if it gets valued less than 225k]. Also you mother's solicitor will need to check her title on the property and ensure she doesn't have to pay any capital gains tax. You will also have to pay stamp duty which is now at 2% I believe, this should most likely be the only tax you'll face.

    Given all over the above is not free, bar maybe just a phone call with a solicitor once you get one.
    Its probably best to look into planning first as I would assume you will want to do a few changes to the cottage i.e. a toilet, anything over 40sq will need planning permission etc, and would be best to have planning in place before you start on the transfer process.

    Then sort a mortgage if necessary.

    Good luck and any more questions fire them on, I'll help if possible.


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    #6
    southie_anseo
    Registered Users Posts: 43 ✭southie_anseo


    thank you so much rí Nollaig, i had no idea where i might even start you have been a great help. I am sure as i go along i will have so many questions. I have no idea wheather we will extend or rebuild, i am leaning towards rebuild at the moment as its windowless, doorless damp no proper foundation built on the stone beneath. I really have no idea, i would love to be able to fix it up but i think that would be if i won the lotto. I cant see us been able to get a mortage in the near future just do a bit as the credit union loans allow.


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    #7
    Meathlass
    Registered Users Posts: 3,023 ✭✭✭Meathlass


    southie_anseo wrote: »
    thank you so much rí Nollaig, i had no idea where i might even start you have been a great help. I am sure as i go along i will have so many questions. I have no idea wheather we will extend or rebuild, i am leaning towards rebuild at the moment as its windowless, doorless damp no proper foundation built on the stone beneath. I really have no idea, i would love to be able to fix it up but i think that would be if i won the lotto. I cant see us been able to get a mortage in the near future just do a bit as the credit union loans allow.

    Make sure it's not a listed building - unlikely to be but you never know.

    The council will keep a list of these.


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    #8
    Ri_Nollaig
    Registered Users Posts: 2,297 ✭✭✭Ri_Nollaig


    southie_anseo wrote: »
    thank you so much rí Nollaig, i had no idea where i might even start you have been a great help. I am sure as i go along i will have so many questions. I have no idea wheather we will extend or rebuild, i am leaning towards rebuild at the moment as its windowless, doorless damp no proper foundation built on the stone beneath. I really have no idea, i would love to be able to fix it up but i think that would be if i won the lotto. I cant see us been able to get a mortage in the near future just do a bit as the credit union loans allow.
    Well then maybe the best thing to do first would be to get onto an architect or structural engineer and see what they can and can't do with your given budget and work from that.
    Most likely it will be best to rebuild but will obviously depend on the site/current state of the house etc, who ever you get will advise here.

    I just say this as even thought the site/house is 'free' you will have to pay some tax, the stamp duty [2% of value] and the professional fees which could easily be 2000-3000€. So its probably best to get planning sorted first and have an idea what you want before going to the effort and expense of transferring. Planning lasts like 5 years and can be extended another 5 easily.


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