Top-up/re-mortgaging to buy a parking space

I bought an apartment with my partner in 2003. Now, we want to buy a parking space that has become available in the apartment complex so that we can rent it out. We will need to get a top-up on our (AIB) mortgage to pay for this.

1. Will we need to pay conveyancing fees on the parking space, in addition to the costs of the top-up?

2. If we decide to re-mortgage (for example, to switch to a tracker mortage) to get the extra cash, how will that affect our costs (since re-mortgaging will involve conveyancing anyway)?

Thanks for any help.

1. There will be conveyancing fees incurred on the purchase of the parking space. In fact, the fees may be hefty enough relative to the value of the transaction. Expect to pay a minimum of €600 plus V.A.T. plus outlay, and it might be double this. Don't forget that you will have to pay stamp duty on the purchase.

2. There may be conveyancing fees incurred on the re-mortgagage. Certainly there will be if you change lender, possibly not if you stick with AIB - AIB should be able to tell you.

The space will cost about EUR45K so surely that will be too low to incur stamp duty. Are you saying that re-mortgaging incurs stamp duty?

1. "The space will cost about EUR45K so surely that will be too low to incur stamp duty."

I hope you are right, and come to think of it, you just might be. I haven't had to buy a parking space as a stand-alone transaction, so I haven't had to check the Revenue position, but it will be exempt from Stamp Duty if Revenue agree that the parking space comes within the definition of "residential property". Perhaps they will (and there is a certain logic to this - after all it would clearly be residential property if bought along with an apartment). However, it would be best to double check.


2. "Are you saying that re-mortgaging incurs stamp duty?" No, but it might (if total loan is over €254k). However it is only at a rate of €1 per '000.

I have had to purchase a car park space as a stand alone transaction and the conclusion my solicitor came to was that it was not "residential property" and thus stamp duty applied at non-residential rates unfortunately. He spoke to Revenue at the time and they confirmed this position. I do recall reviewing the SD legislation myself and came to the conclusion that the case for arguing it was residential property was not great.

donegal.

Thanks Donegal.

I'm sure it will be no different for me but I will confirm it with d'Revenue anyway.

BTW, is there any chance that your solicitor limited the conveyancing fees to 1% of the purchasing price or is that rule only applied where the property is worth several hundred thousand euro?

Himself

I have used the solicitor on a number of occasions and I think he charged me c €400 plus VAT if I recall correctly which on a purchase price of 25k worked out at 1.6%.

donegal.

Good to know. Thanks.