In the OPs case, my understanding is that they are converting the garage to create an additional ensuite bedroom. It's under 40 sq m.conversion for the purpose of creating a granny flat
Thanks for the feedback. Why you don't feel it's a good plan please - the way I see it, the positives are;I don't see that borrowing €70k is a good plan here.
I live in Dublin, we bought a house 4 years ago and renovated the house, incorporating the conversion of the garage into the granny flat as part of the mortgage.
I understand that this is the kind of thing credit unions lend for.? I asked PTSB specifically about borrowing extra on the mortgage towards a granny flat conversion and they said it couldn't be done.
I was replying to the other user who spoke of creating a granny flat, but you are correct. So long as the garage is incorporated into and accessed via the house then planning is usually not required. I say usually because there are some caveats in the legislation. Anyone going down this road would be advised to seek a Section 5 Declaration from the LA to avoid any doubt and eliminate any potential issues when it comes to sell.In the OPs case, my understanding is that they are converting the garage to create an additional ensuite bedroom. It's under 40 sq m.
Not necessarily. We're currently house hunting and have just turned down a great 5 bed property mainly because the garage had been coverted into an additional living space. Mr Mct1 wants a nuts and bolts workshop where he can saw, hammer and weld, and we don't want the hassle of converting it back. Due to new planning edicts, garages are rare as hens' teeth in new builds around here, and so I wouldn't assume everyone wants to be a landlady/landlord or move their in-laws in.Add value to the house (a granny flat would surely be more appealing to a buyer/investor than a garage
While that is true, in SDCC there is absolutely no follow up on a planning condition that a garage conversion cannot be let out. We objected to a planning by our neighbour including garage conversion. Permissions was granted for all with above condition on the garage Completed bulid is not to approved planning permission. We put in a complaint and 4 yrs later nothing has come of it and the garage is let since day one. The access to this is not from within the house either. A door that was in the plans is actually not a functioning door at all.That is not true, conversion for the purpose of creating a granny flat or self-contained unit does not fall under exempted development.
Most local authorities are pretty restrictive on granting permission for granny flats and in most cases will require proof of a family need and will explicitly prohibit letting in any form.
That is disappointing.While that is true, in SDCC there is absolutely no follow up
Mine had a fake door, as in I plastered the internal door to garage conversion over with a light partition, 2 doors like some hotels have would also work. Or a very good solid door. And I got a free division of electricity as the ESB wanted my box outside so they did that bit for me from road to house and 2 boxes back in the early 90's. When I sold, it was sold as is, but without mention of their being a granny flat because of course I'd no planning permission. And banks are very strict about planning now.Yes, with a connecting door to the main house, it will satisfy the conditions.
It should also not have its own gas/electric supply I believe.
Most people have to earn double that to get 9K, as in he'd need an income of 18K. Because once you're a higher earner and over to the 40% tax bracket that's the reality of it.If you believe the conversion will cost 70k - ask yourself how long will it take for you to get your money back.
750 per month rent is €9k per year. Allow for repairs / extra bills - say 1k just to make the sums easier.
So at 8k per year it will take you a little under 9 years just to get your money back - no income. And thats without accounting for the interest you will have to pay.
Unless there are serious obstacles to doing so, renting two rooms is a no-brainer for an FTB.
This is incorrect. As long as it's part of the building he's fine. What is not fine is a garden chalet separate to the house. So all standard built Irish estate houses with garages are suitable for rent a room.If it is not sharing the main dwelling, it is not part of the house and you cannot avail of the 14k rent a room scheme. Its an independent dwelling and all income should be taxed.
Would it not be easier to use excess living space as a workshop, rather than the other way round?Not necessarily. We're currently house hunting and have just turned down a great 5 bed property mainly because the garage had been coverted into an additional living space. Mr Mct1 wants a nuts and bolts workshop where he can saw, hammer and weld, and we don't want the hassle of converting it back. Due to new planning edicts, garages are rare as hens' teeth in new builds around here, and so I wouldn't assume everyone wants to be a landlady/landlord or move their in-laws in.
We just submitted the plans with the mortgage application. It looked like a room, a smaller room and a bathroom. As long as there was no actual mention of it being a granny flat, then it seemed to be no issue. That's what the mortgage broker recommended. This was 4 years ago though so maybe things have changed since.Could you tell me more about how you managed this please? I asked PTSB specifically about borrowing extra on the mortgage towards a granny flat conversion and they said it couldn't be done.
Ingredients' situation is different in that they are looking to borrow the sum to purchase the house and additional money to convert the garage.We just submitted the plans with the mortgage application. It looked like a room, a smaller room and a bathroom. As long as there was no actual mention of it being a granny flat, then it seemed to be no issue. That's what the mortgage broker recommended. This was 4 years ago though so maybe things have changed since.
We just submitted the plans with the mortgage application. It looked like a room, a smaller room and a bathroom. As long as there was no actual mention of it being a granny flat, then it seemed to be no issue. That's what the mortgage broker recommended. This was 4 years ago though so maybe things have changed since.
The way this proposal should be done for the mortgage application is say (assuming figures) 250k pp, 70k renovation cost, you'll need quote from builder for this showing you converting it into a useable part of the house, I would leave off any mention of kitchen etc in it, ensuite bedroom plus office maybeJust to clarify - you were granted funds for the house purchase (max of 90%) plus additional funds for the conversion? Did this not put the mortgage (the total of the two) beyond the 90% cap of the house value? eg if the sale agreed price was 340k, and you wanted to borrow another 60k, that means you were borrowing ~300k (sale agreed minus your deposit) plus €60k = €360k which is beyond 100% of the sale agreed.
I was told by the bank that because this puts the loan beyond the max of 90% that this is now allowable for that reason.
Banks don't lend on what a property might be worth in the future, the valuation will be what it's worth at time of purchase.Now the valuer for the bank has to agree when the valuation is done that the renovated value of the property will be 320k,
At no time will the bank have advanced anymore than 90% of present value/purchase price, the balance is only released when the work is done and the valuer confirms that the house is worth what valuer initially said it would be when the renovations were done.Banks don't lend on what a property might be worth in the future, the valuation will be what it's worth at time of purchase.
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