Correct Process for Planning Permission Approval on Family Site?

[fmmc]

Hello,

Need some help with the correct process for building our family home. My wife's family have some land and they've agreed to gift my wife a site to help us get started. This is where my confusion starts! Do we need to have the actual site (area of land) they are planning to gift identified and deeds transferred prior to looking for planning permission? Risk is that we are gifted a plot that the council won't grant PP on. Or do we ask architect to recommend which piece of land is most suitable or likely to be approved for building site prior to transfer? I'm assuming you cannot look for FPP on a site not in your name? Should the parent look for FPP on the site prior to transferring title? Probably silly questions but have sympathy for a First Timer please!

 

[Judy]

had a similar issue, my Dad gifted me a site and we have now applied for planning permission. We left the site in my parents name (on advise from architect) as you say no point in changing it over until you get permission. My parents gave us a letter basically stating that they gave us permission to apply for planning permission. So if we get the permission then it will be changed into my name (have it then put into your wifes name as she can be gifted land without being charged fees and possible tax on it) it can then after three years be changed into both of your names with no bother. Oh and you will have to have the area identified as you will need to submit a site map. I'm sure if you ask the architect to come look at it they will let you know what site is best. Hope this helps!

 

[fmmc]

Re: Correct Process for Planning Permission Approval on Family Site? Reply to Judy

Thanks Judy - your post is a great help. One question though regarding adding my name to the site after three years. It would be our intent to begin the building process immediately upon receiving FPP. When we apply for the mortgage to build the house, given my wife is currently not earning, will it be possible to obtain the mortgage & thus build the house in both names although the site is in her name?

 

[Judy]

Well we've been told that because the planning permission is in both of our names that we will have no bother getting a joint mortgage. Not sure if it makes a difference that only one of you is working though as we both work. But i shouldnt think it will be a problem when its apparent from the permission granted letter (that you have to submit to mortgage lender) that both of you are building it.

 

[Winnie]

One thing to note is that if you transfer the land prior to pp then it will have a lower value & will use up less of your wife's CAT band - basically you cant get gifts/inheritances from a parent to the value of €440k before you are required to pay CAT. So if the land is valued at €100k before pp is granted vs €200k after pp you will use up less of the total €440k..........this might not be relevant if you will not be getting any more 'gift's or inheritance but it is worth considering.

Obviously there is the concern that if you get the land t/f'd and then don't get planning permission it makes things a bit messy.

My architect seems confident enough that there won't be a problem so I am going to get the land t/fd before we hear about the pp - for the reasons outlined above.

In terms of the land being in your wife's name that really has no effect on mortgage etc - basically she will own the land but you both will own the house & the banks are fairly familiar with that these days. So it will just be considered like any other mortgage (in terms of you income etc). The fact that you don't have to borrow for a site is a bonus in terms of how much you can borrow.

And as Judy said - on the pp application you need to get a letter from the land owner to say they give permisison for you to apply for pp on the land.