Building a home in parents' garden

Bill_the_Bobder

My wife and I are saving for mortgage at some point in the future - but needless to say, we're not so confident we'll be granted one, so we're thinking of alternatives.

One being building a house on my parents land, specifically in their large front garden. The live in corner semi-detatched house in D12, so there's plenty of space for it.

Just looking for advice here - what should we think about? Would we have to buy the land from my parents? Obviously they can't just give us the land (although they'd be willing to do that) without inflicting a massive tax bill or somesuch. Despite my username, I'm entirely ignorant of building and the laws and regulations around it

So what's the best way to go about this? Has anyone here done something similar?

Any advice/tips/links would be massively appreciated 🙏

Idbatterim

They could just let you live on it , no ? See what happens with the garden room proposal... I'd be moving a mobile into ot potentially, easy to sell in future..

Assuming you can't get pp to build a regular " house" in the front garden?

KaneToad

https://www.revenue.ie/en/gains-gifts-and-inheritance/cgt-reliefs/transfer-of-a-site-from-a-parent-to-a-child.aspx#:~:text=You%20will%20not%20have%20to,civil%20partner%2C%20to%20your%20child.

Transfer of a site from a parent to a child

You will not have to pay CGT if you transfer land to your child to build a house on. The house must be your child’s only, or main, residence. A transfer includes a joint transfer by you, and your spouse or civil partner, to your child.

The term 'child' includes your:

son or daughter

stepchild

civil partner's child

foster child, whom you maintained for at least five years before they reached the age of 18. (This must be supported by the testimony of more than one witness.)

Gumbo

https://www.boards.ie/discussion/2058403475/building-a-home-in-parents-garden

Your worried about the wrong stuff the moment.
Look at the planning implications first and determine if a new dwelling can be obtained first. obviously, without an address, we can’t give specific guidance or opinion but maybe look into a consultation with a local architect, technician or planning agent to look at the feasibility of it.

There should be no local restrictions as it’s D12 and DCC so in theory you could apply for planning on parents name and see if it’s granted before looking at the legal and tax (or lack there of) requirements.

muffler

https://www.boards.ie/discussion/2058403475/building-a-home-in-parents-garden

As pointed out by Gumbo get your planning permission sorted out first but you would be looking at a refusal if you're looking to build in the front garden.

JVince

I'm guessing by "front garden" it includes a large area to the side of the house?

It's highly unlikely you'd get permission for the front of the house to be forward of the current building line.

Look around the area at house in a similar corner plot and see if others have done something similar. Knowing D12, many have done so - mostly attached to the current house.

Also as above, there will soon be regulations for modular homes of up to 40sq m to the rear of a property. It most likely will need fire service access (fine as its a semi detached property), at least 25sqm open space remaining and for use by family member only. As you qualify under what is currently being mooted, this may be an ideal situation.

Patrick2010

deleted as google maps link didn't work but google 196 butterfield avenue for an example from D14 for a house built to the side

JVince

To answer the original query simply.

1. Almost certainly no tax implications for you or your parents.

2. If there's space to the side of their house. Almost certainly will granted planning as many others have done similar in the area

3. In addition, considering the rear garden in many D12 houses are substantial, you will also most likely qualify to build a modular home of about 440 sq ft once those regulations are sorted. (promised by Summer)

Bill_the_Bobder

https://www.boards.ie/discussion/comment/123283568#Comment_123283568

Yes, sorry, I should've been clearer about that. They live in a semi-detatched corner house, so they've got a huge side garden where another house could conceivably be built alongside.

That's good to hear about the Capital Gains Tax - that was the one area I was most worried about, I didn't want to land my parents (or ourselves) with a massive tax bill if we went ahead with it

Thanks for all your replies, they've certainly eased my mind about this. At the moment it's all theoretical. Just a Plan B in case we do get turned down for a regular mortgage

Can anyone recommend an architect, technician or planning agent who might be able to look at the space for us? Someone based in the D12 area? Or is it better just to get someone you know or a 'friend of a friend' who's in the business?

🙏

JVince

https://www.boards.ie/discussion/comment/123284330#Comment_123284330

check planning files of any houses in the area that have had this done and see who they used.

But is bread and butter work for most architects, so simply do a google search.

Easy enough to separate the land holding too and create an individual folio, so possibly its a better option than looking at newbuilds - though the downside is being next door to your parents which is not to everyone's liking

Murt2024

https://www.boards.ie/discussion/comment/123284732#Comment_123284732

Couldn't do it, would drive me insane. They'd feel like they could walk in at any stage.

Bill_the_Bobder

https://www.boards.ie/discussion/comment/123284732#Comment_123284732

"Easy enough to separate the land holding too and create an individual folio, so possibly its a better option than looking at newbuilds"

Excuse my ignorance, but could you elaborate on this? Does creating an individual folio mean being able to sell off the garden separately?

"though the downside is being next door to your parents which is not to everyone's liking"

This isn't really an issue for us. My parents' are quite elderly at this stage. My only sibling lives in another part of the country and I'd like to be accessible to them when they inevitably lose their mobility. Just thinking long term

suvigirl

What would be the difference in the mortgage? Do you not still need a mortgage to build the house? Maybe that's too personal.

JVince

Solicitor can do the work in relation to separating the site.

Self build mortgages are easy to obtain and the site value is taken into account too, and I'm fairly certain it qualifies for the tax rebate too.

Can be very handy living next to elderly parents. Gives them peace of mind that there's someone around in an emergency - and thus making an emergency less likely as they have less stress.

muffler

There's absolutely no point in sub-dividing the land until such time as planning permission is granted.