PP in brother's name on my land. started to build but now need mortgage to complete.

B

bob_stokes

Guest
All,

My brother was granted PP for a house on some land I own. His circumstances changed which resulted in him no longer wishing to build. Rather than waste the PP, I started to build the house (according to the plans submitted etc).

I used my savings to build it this far but now I would like to get a mortgage to complete the build. Here is the stumbler.

A broker told me no bank will touch me.. but would a bank give me a mortgage.. given the PP was in my bro's name?

Cheers
bob
 
Bob,

Don't know about the bank not touching you but my son applied for FPP on a site that I owned. He changed his mind and I decided to go ahead anyway with the building. I went to the bank (AIB) for a mortgage and got it but it was the first time they had come across this situation! I had to get a letter from my solicitor stating that the PP is granted for the site and not the person. Think about it... how many times have you seen sites for sale advertised on the paper or with auctioneers that have FPP? They are actually more valuable!!!
Hope this is of use to you.
 
It doesnt matter whose name the pp is in as long as there isn't one of those occupancy clauses in it. Broker is wrong.
 
Re: PP in brother's name on my land. started to build but now need mortgage to comple

and if there's an occupancy clause :-\ ?
 
Then it depends on the wording of the clause and if you can satisfy it. So if the wording states that the Applicant must reside in the dwelling for x number of years after completion as ppr, then you could apply to the council for a letter of comfort indicating that it was your brother who applied and that you now intend to build and reside there as your ppr and chances are, unless you are a serial developer, you may well get a letter stating that in those circumstances the planning authority do not consider this as a breach of planning. Some people might ask their local councillor to try to speed this up for them or help the application. Of course if the occupancy clause merely states that whoever builds it or whoever is the first occupant must reside there for x number of years then you have no problem in the first place since if you do intend to reside there for the period you can satisfy the planning conditions.
 
Re: PP in brother's name on my land. started to build but now need mortgage to comple

The wording states that the Applicant must live there for a period after the house is built.

Will a bank not over lookthis?
 
In order to draw down on a mortgage a solicitor will have to certify title for you to the bank and an engineer will have to certify compliance with planning permission- this cannot be done at present since you are not in compliance with the planning permission. Is this your first house? Do you intend to live in it?
 
I posted previously about this same issue. Occupancy clauses are being flouted up and down the country. I personally come across 2 or 3 instances every year, and I am sure my experience is not unusual.

I am 100% in Vanilla's camp on this, and I would not certify title to a lender where the occupancy clause is not complied with. Clearly, some solicitors do seem to feel that it is ok to certify title without there being strict compliance with an occupancy clause in the planning permission. Rather than argue the merits, whenever I have a client who wants to buy such a property, I simply tell them to use another solicitor. If our planners ever get around to enforcing these clauses, I have no doubt that there will be people very quick to blame their solicitors for letting them go ahead, but the reality is that they will only have themselves to blame. Mind you, I doubt that the planners will ever get around to enforcement.

(this is not directed at original poster, who seems to be in the "genuine case" category, and who should, I rather imagine, be able to get the necessary clearance from the Council)
 
What is the effect of a Local Needs clause in this situation?

If planning Permission is granted to X, who qualifies as a local needs applicant but for whtaever reason he cant build and wants to allow his siter to build under the planning permission instead.

I presume if she cant comply with the local needs requirement then then property cant be certified as being in compliance with planning.

In that case the sister would have to re-apply for planning permission and try to get the Council
 
What is the effect of a Local Needs clause in this situation?

If planning Permission is granted to X, who qualifies as a local needs applicant but for whtaever reason he cant build and wants to allow his siter to build under the planning permission instead.

I presume if she cant comply with the local needs requirement then then property cant be certified as being in compliance with planning.

In that case the sister would have to re-apply for planning permission and try to get the Council to take out the local needs on the basis that she is from the area but hasnt lived there for years. Would the Council even look at such a request?
 
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