Any advise?

Kurn

Hi there, I'm almost 40 and single, I've been considering buying a property in Limerick, I live in Dublin but will never afford a property here.

I am an employed in a government body in Dublin City (where I rent (low rent because I've been here so long)) but have been promised a transfer in the next 3-4 years to Limerick.

I'm applying for a mortgage for this property in Limerick (approved in principle), my hope would be to rent 3 out of the 4 rooms out and stay in one at the weekend, until my transfer comes in, while continuing to rent in Dublin.

I have the deposit and a property selected, the bank have asked how am I going to afford this, should I tell them about my plans to rent out the rooms, or would this raise concerns, or is the whole thing a bad idea?

Aside from the being a landlord side of things, do people do this kind of thing?

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If its not your PPR (Principal Primary Residence) then the bank wont give you a home loan on it - it would be a buy to let mortgage (higher interest rate).

Just staying at the weekend would be enough for it to be considered your PPR.

If it IS your primary residence then your tenants are not tenants but licensees. But they are tenants if its not your PPR. And Im not sure on the impact of changing their lease by moving in yourself 3 or 4 years into the rental agreement.

If you live in the property you can rent a room up to 14k tax free per year (I think its 14k). Not sure how that works over multiple licensees.

Kurn

Thanks for that.

So staying at weekends is enough for it to be considered my primary residence? That's good news really.... Thanks for the information.

Is there any need to tell the bank I plan on renting out the rooms?

Samuel T. Cogley

No point in telling the bank as it's not considered income anymore. It was during the last boom, but then they were offering anyone 500K mortgages.

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Kurn wrote: »

Thanks for that.

So staying at weekends is enough for it to be considered my primary residence? That's good news really.... Thanks for the information.

Is there any need to tell the bank I plan on renting out the rooms?

I apologise - staying only at the weekends probably would NOT be enough.

Youd need to check the rules on it.

The definition may differ for the purpose of a mortgage versus for tenancy legislation.

April 73

Surely if the OP does not own another property, stays in this house from Friday night to Monday morning, and on days off and holidays, while renting a place in Dublin so he doesn’t have to commute every single day then the house in Limerick is his PPR? I think it would be hard to argue that it is not.

OP are you planning to tell the bank that you are going to continue renting a place in Dublin? I think that might make them wary about income v expenditure.

Kurn

April 73 wrote: »

Surely if the OP does not own another property, stays in this house from Friday night to Monday morning, and on days off and holidays, while renting a place in Dublin so he doesn’t have to commute every single day then the house in Limerick is his PPR? I think it would be hard to argue that it is not.

OP are you planning to tell the bank that you are going to continue renting a place in Dublin? I think that might make them wary about income v expenditure.

Yes, they already asked for details of this rent and how I'm going to afford this property while renting (pretty fair question TBH).

I think this is why I need to tell them I plan on renting out rooms, but I suspect this won't fly...

Without being crude, they want to know where I *** last.

It's slightly devastating (dramatic) (because it's getting close to my last chance to buy)

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April 73 wrote: »

Surely if the OP does not own another property, stays in this house from Friday night to Monday morning, and on days off and holidays, while renting a place in Dublin so he doesn’t have to commute every single day then the house in Limerick is his PPR? I think it would be hard to argue that it is not.

OP are you planning to tell the bank that you are going to continue renting a place in Dublin? I think that might make them wary about income v expenditure.

Staying somewhere Friday night to Monday morning isnt living there.

Where you LIVE is your principal private residence.

Given whats been outlined - the house in Limerick could be considered a holiday home.

April 73

....... wrote: »

Staying somewhere Friday night to Monday morning isnt living there.

Where you LIVE is your principal private residence.

Given whats been outlined - the house in Limerick could be considered a holiday home.

I don’t see why. It’s the only house he would own. He could stay Friday to Monday & there’s nothing stopping him returning during the week & commuting to Dublin one or two days. He has all of his personal mail addressed to the house in Limerick, it’s where he stays on his time off & his holidays etc etc. Renting a place in Dublin as a crash pad for the job doesn’t make it his PPR.
Of course all of this is subjective but I know plenty of people who have crash pads because of their job but their main home is elsewhere.
If he regularly stays there it couldn’t be let as a tenancy.

GingerLily

Another poster has recently been rejected because the distance between their place of employment and the property is too large.

3DataModem

April 73 wrote: »

I don’t see why. It’s the only house he would own. He could stay Friday to Monday & there’s nothing stopping him returning during the week & commuting to Dublin one or two days. He has all of his personal mail addressed to the house in Limerick, it’s where he stays on his time off & his holidays etc etc. Renting a place in Dublin as a crash pad for the job doesn’t make it his PPR.
Of course all of this is subjective but I know plenty of people who have crash pads because of their job but their main home is elsewhere.
If he regularly stays there it couldn’t be let as a tenancy.

PPR is “where you would expect to be found” there’s no fixed rule about commuting / crash pads.

As stated above the issue you’ll have is you are not buying near your place of work and not buying within your unassisted means. They’ll deduct rent from your disposable, assume low rent a room occupancy, and it won’t be easy.

April 73

Why not try and fast-track your transfer in work? It would make everything much easier.

Kurn

April 73 wrote: »

Why not try and fast-track your transfer in work? It would make everything much easier.

Been trying that for over a year, I'm afraid I have to wait.

Thanks for the advice everybody.

afkasurfjunkie

I’d be in no rush to buy a property that I couldn’t live in for 3/4 years. Who knows what will happen in the meantime. If you have low rent in Dublin stay put and save your money.