Help to buy scheme, issue with valuation of self built house?

KingPanko · 01-07-2025 09:34AM #1

Has anyone had an issue with valuation of their self built house for the help to buy scheme? The scheme is limited to houses valuated under €500k however houses around me are mostly selling for over €500k therefore if I build a modest bunglow as planned (400k budget spend) it will definiety be worth over 500k on the open market

Mellor · 02-07-2025 12:35PM

https://www.boards.ie/discussion/2058418520/help-to-buy-scheme-issue-with-valuation-of-self-built-house

It’s limited to 500k, because if you can afford half a million. You don’t need help to buy. Or if you need help to buy, you shouldn’t be targeting half a million.

The price of homes around you will not significantly inflating the valuation of your house. You seem to be forgetting about land value. 100k land, 400k build. It’s not a big shock to see that be valued at 100k.

chooseusername · 04-07-2025 12:13AM

https://www.boards.ie/discussion/2058418520/help-to-buy-scheme-issue-with-valuation-of-self-built-house

Build a more modest house, <400k including site value, designed to accomodate future extensions. Get your HTB ,live with it for a while, then extend?

KingPanko · 05-07-2025 12:28PM

https://www.boards.ie/discussion/comment/123602997#Comment_123602997

I agree with your opinion but hard to do. We applied for planning for a very modest bunglow and the planner said no and the design that they want is modern and costs 40-50k more than the plans I wanted. The system is very frustrating, with the extra cost and without the help to buy I'm considering giving up and not building, one less house in the country is the result of a terrible planning system

Mellor · 06-07-2025 02:12PM

https://www.boards.ie/discussion/comment/123606575#Comment_123606575

In what way was the design they wanted 50k more?
By modest, I think @chooseusername was simply referring to a house that was more modest in area - ie a smaller house.
I would be surprised in council are insisting on a bigger house.

tonytoc11 · 06-07-2025 09:03PM

The development cost (site value + build cost) is the figure you use when applying for HTB.

KingPanko · 06-07-2025 10:32PM

https://www.boards.ie/discussion/comment/123610433#Comment_123610433

My reading of the rules is that it's the valuation of the finished house, unrelated to the actual build cost

KingPanko · 07-07-2025 07:14AM

https://www.boards.ie/discussion/comment/123609012#Comment_123609012

They don't dictate the size but design also makes a huge difference. I applied for a basic bunglow, four walls and a roof. They said no, my designer liasing with them said the only thing they will accept is something like below picture. It's nice but much more expensive, more external walls, fountain, roof, less efficient use of space etc.

I've had them both priced, min 40k extra to just build to minimum standards, more for extras such as mechanical ventilation etc

Screenshot_20250707_070249_com.google.android.apps.docs.jpg

Belt · 07-07-2025 08:15AM

https://www.boards.ie/discussion/comment/123610678#Comment_123610678

From personal experience, the auctioneer the bank send out to carry out the valuation will work with you on this to keep it below €500k for the HTB, within reason.

The valuation for HTB is carried out pre mortgage drawdown so auctioneer will likely go with site plus build cost as the valuation.

Mellor · 07-07-2025 01:09PM

https://www.boards.ie/discussion/comment/123610678#Comment_123610678

It’s based on the valuation used fit the mortgage. So if you are borrowing 400k for construction costs, there’s no reason they’d need to inflate.

But I’m not sure why you think it’s unrelated to construction costs. That’s probably the single best indicator of value

KingPanko · 07-07-2025 01:39PM

https://www.boards.ie/discussion/comment/123611837#Comment_123611837

The new house will likely be worth between 600 and 650k if put on the market based off the prices houses are going for in the area. Thats what I mean by unrelated to construction costs. Perhaps the auctioneers could ignore that for me and put down on paper that it's worth something related to the construction costs but the letter of the rules says the value ie the price it would make if sold

Mellor · 07-07-2025 01:45PM

https://www.boards.ie/discussion/comment/123611935#Comment_123611935

You are still forgetting the site value.
If 400k of build would sell for 600k plus, that that means the site is reasonably worth 200k. The site value is factored into the valuation.

Either that, or you are simply mistaken about the costs and/or what it would go for (it’s not as simple as looking at nearby houses).

Bass Reeves · 08-07-2025 12:52PM

Auctioneers have no issue slightly undervaluing a house. Remember technically its the value the day you move in so it's a house on a site with no landscaping, no tarmac, maybe not all footpaths laid. Inside probably only the kitchen, a bathroom and a bedroom completely finished.

Ya in 5+ years time your house when the house us fully complete it valuation will be totally different to the move in value. You can get the auctioneer to allow for this. A one off house valuation is totally different to a final build build valuation of a 3 bed semi D where everything is fully finished and decorated.

Only thing to watch is that tge valuation covers both the mortgage and HTB criteria

C3PO · 08-07-2025 08:33PM

https://www.boards.ie/discussion/comment/123606575#Comment_123606575

The system is frustrating because you’re struggling to “game” it …. seriously?

Bass Reeves · 08-07-2025 10:12PM

https://www.boards.ie/discussion/comment/123615840#Comment_123615840

@KingPanko is trying to get a house build. The planning authority are causing part of his issue by insisting on him build a bigger house than he originally wanted to build, and by insisting on a design that is more expensive to build than his orginal design. Tge design planning insisted on is technically two separate units with an linking corridor. Not is it a more expensive design it also will cost more to maintain and heat. The design has probably also increased the value of the house which is causing OP the issue with HTB.

If his orginal design was accepted the 50k saved would mean even if the valuation was abo e the HTB 500k he could still have afforded to build it. The system is a Rhinoceros it bulldoze's you if it can all you can do is saddle it and stay in board

Mellor · 10-07-2025 03:05PM

https://www.boards.ie/discussion/comment/123614579#Comment_123614579

Banks will use valuation surveyors rather than auctioneers. they too could lowball, but they are unlikely take direction from the homeowner. Bank will also have cost per sqm guides..

Remember technically its the value the day you move in so it's a house on a site with no landscaping, no tarmac, maybe not all footpaths laid.

That’s not really accurate . It’s the value for the total work. If your building to “no landscaping or tarmac” etc that’s the value. But you’re mortgaging a contract for full build, that’s the value they are interested in. Especially in terms of LVR.

Mellor · 10-07-2025 03:11PM

https://www.boards.ie/discussion/comment/123610991#Comment_123610991

I’d ask to see that from the council in writing. It’s very strange for councils to do so specific with design input. Doubly so when that design is very non-traditional. Your designer may be misconstruing something.

muffler · 10-07-2025 03:32PM

https://www.boards.ie/discussion/comment/123620843#Comment_123620843

My sentiments exactly.

Help to buy scheme, issue with valuation of self built house?

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