Building house on 'gifted land'

L

ludermor

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Greetings experts,
I will be starting to build a house (hopefully , pending planning) soon. I have a host of questions i need answered. Everyone second person i talk to seems to give me a different answer. So these are the details.
I havent transferred the site onto my name yet, the solicitor told me to wait until the planning comes through. The plans are for a 4 bed house around 1800 ft/2. I was going to convert the attic space into 2 additional rooms. I am a first time buyer
So here are my questions.
What is the best way for me to transfer the site into my name, and what costs could arise in this.
Will i have to pay any stamp duty on this house. If so how will it be calculated
When applying for the mortage how much al i entitled to before i start building.
Who certifies the stage payments for the mortage. I have an architect working on the aplans and the planning application but i dont know if he is registered or even qualified.
If i put rooms upstairs will it have any effect later when if i try and sell
When finished the house should be worth a lot more than the money i will have spent on it. How do i go about using this equity.
All answers would be appreciated
Luder
 
the solicitor told me to wait until the planning comes through
Click to expand...

You should get this checked out

The value of the gift you are going to recieve is the value of the land

The value of the land is going to be a lot more with the planning permission than without it so depending on who you are receiving it from may mean a large amount of gift tax

This needs to be osrted before anything else
I may be making a big deal out of nothing but it depends who is gifting you the land

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and what about Stamp Duty.. what rate applies, if any?
 
Hi, have just been through basically the same process. In my case the land was gifted from father to son so this automatically halves the Stamp Duty amt. The land will be worth less without planning permission so if you are going to transfer it I would do it before planning permission, so as to pay the less amt. of stamp duty on the value of the land. Your land will have to be valued professionally for stamp duty purposes. If you are going to convert your attic into bedrooms, you will need to put this in your plans before submitting for planning permission or else when you go to sell your house you cannot claim the attic as liveable space unless you have planning permission i.e. if it is a 3 bedroomed house with the attic conversion and you put in 2 extra bedrooms in the attic, if you don't have planning permission you can only sell it as a 3 bedroom house and not a 5 bedroomed one. Your architect will sign off each stage of the building and then you apply for the next stage payment, you can also employ an engineer to do the same. They usually charge per stage payment, ie €200 per signed off certificate. Hope this helps.
 
Cheers for that and good point about transferring before planning permission is granted. Just on the Arch. or Eng signing off payments, do they have to be registered to the banks or the local authority? ( can i get any arch to sign off on these stages?)
 
As far as I know, any fully qualified Architect or Engineer can sign off and then you submit the cert to the bank for the next payment to be released. The arch. or eng. needs to check the work over before they sign off on it because I think they can be held liable for passing any dodgy work.
 
I think the arch. or Eng. must have private indemnity insurance to sign off. This should always be checked anyway when employing anybody to do some work for you.
 
am in the same boat... and my solicitor "suggested" getting the permission for the actual house type you plna on the site before transfer(again between father and son) as if you transfer b4 permission it may be classed as a development site, rather than a PDH site, hence increasing the value of the site and the stamp payable.

Doctors differ etc etc
 
Just came accross this on another topic... seems to say that there is no Stamp duty where a site is transfered form Parent to child to build their PPD
 
In relation to having a architect or engineer "sign off" on each stage, most (probably all) mortgage providers will insist such a person has professional indemnity insurance to a min limit eg ICS insist on €190,000. for your own benifit I would recommend asking the architect to provide proof of insurance from his insurer/broker for your own records. Each stage is certified and then your solicitor will send a cheque rec to the bank etc and they will forward the money.
 
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