Barriers to purchasing a small cottage

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Roro999

Registered User
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Looking at purchasing a small cottage and renovating it. The back door has been blocked off to make way for a stove so only has access through front door. The septic tank needs replacing. Will I be able to get a mortgage on this and be able to insure it.
 
I don't see why you can't get a mortgage on this, but I assume you will need to live elsewhere when it is being renovated abd the back will need to be sure you can afford both the rent and mortgage during the period of the renovation.

Vacant dwellings insurance can be very hard to get. So look into that early and check to see whether you can use the same insurance company as the vendor. You will need the insurance in place to draw down the mortgage.

Finally like a self build you often draw down a large refurbishment mortgage in installments and a bank will often insist these are signed off by a supervising architect or engineer. If you are planning on doing a minor job this won't be necessary but for a big job you'll need to factor in these extra costs.
 
Roro999 said:
The septic tank needs replacing.
Click to expand...
I have relatives who've just managed to sell a 1940s cottage (price mid €100ks) after nearly nine months of back and forth with purchaser's lender, the local authority, and an engineer over the location of a septic tank from the 1980s.

Not sure who the lender is but they are particular about this kind of thing these days.
 
Big one to check, is property tax up to date? I.E., make sure the owners didn't declare it uninhabitable to save a few quid.

The renovations may require planning permission, and touching more than 25% of the envelope will trigger the requirement to bring the property up to minimum B2 BER standard. What are the local authority permitting in that area?

In terms of the septic tank, depending on what's there and the age, replacing might require planning or might not be possible depending on the soil conditions and size of the site. Remember all work you do will have to be up to current standards, not what was acceptable at the time it was built.

I'd strongly advise engaging a professional working in the area to advise.
 
Depending on the state of the property this might be relevant.

Vacant Property Refurbishment Grant

The Vacant Property Refurbishment Grant provides funding so you can refurbish vacant homes to live in.
www.citizensinformation.ie
But, cynical me assumes that these grants are priced into work done under such grant schemes...
 
Also have seen where a house was unsaleable due to the fact that the septic tank was located in a farmers field. It was ok when the old man was living in it as he was friendly with the farmer but when he died his relatives couldn't sell it. So it has just fallen into dereliction
 
Definitely agree about checking and double checking septic tank, that it is in your site and that the site is big enough to take any upgrades deemed necessary, I think the days of having it in the neighbour's land because they were family/friendly or whatever are gone, too much hassle.
 
Echoing the posts above:

1. Sort out the septic tank situation and wheter planning permission required - engage professional advice (architect/engineer)
2. How much work to be done re renovation - as 1 above, engage professional advice.
3. Avail of as much grant aid as you can as per refurbishment grants for primary residence and also retrofit energy conservation grants - Minimum BER standards on the refurb are likely to be B3, so again aim on expenditure to getting the house up to that standard and retain professional advice if necessary.
4. Not totally familar with mortgage and insurance situation but I seem to recall from my own application long time back that you can draw down in installments whilst refusbishments are ongoing but will need all that signed off by architect/engineer so all the more reason for engaging a professional. I expect the bank will insist on you having insurance cover during the refurbishment. As an aside do you have much saved in the way of available funding for downpayment/deposit/refurbishment costs? I expect the bank are gonna wanna see a fair chunk (+10%) of available cash for the project.
 
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