in this video i want to take a look at self building a house stage payment mortgages and
self building a house and look specifically at the type of outlays and costs you're going to
encounter i've done a video already in relation to the outlays and costs in relation to buying
a new house buying a second-hand house and this one i've been requested to do on in relation to
self-building because i know quite a few people receive the sites from parents and they have to
then build or choose to build their own house so we're going to look at self-build stage payment
mortgages to costs and outlays and for the sake of this video we are going to say that the
site value is say 50 000 euros so around where i am in enfield and county mead or in kildare you
might get a site from a parent it could be worth 20 or 30 grand maybe worth more without planning
information with planning information it probably worth at least 50 grand but for the sake of this
presentation and analysis we're just going to look at or we're going to assume a site value of 50 000
and we're going to assume that the site is being gifted from a parent
site transfer fee in relation to or for the property registration authority will involve
the transfer of the site into your name from the parent and that's going to cost i think to
the best of my memory 175 euros because it's a voluntary transfer as i say we're assuming
a gift you're going to need to register a charge or a mortgage on the property because the lender
who is going to finance your stage payment mortgages is going to want the charge registered
so that's going to cost 175 euros and then if the site is being carved out of an existing
folio an existing farm for example you're going to look at a cost of 75 euros for a new folio opening
i think they are the property registration authority fees i think they're accurate
enough that's what you're looking at in terms of stamp duty then it's a non-residential it
may well be a gift of a site for the purpose of building a residential property on it
but it is non-residential you're looking at stamp duty rate is seven and a half percent fifty
thousand then is the valuation it's a gift we're not paying fifty thousand but we have to value it
at the correct value you will need an estate agent to give you a valuation or to give the
will to give you a valuation which you would give to your solicitor who would place it on the file
50 grand where assuming is the value seven and a half percent is the stamp duty rate
that means that you're going to pay a stamp duty of 3750 legal fees there's two aspects to the
legal fees for a solicitor like me one is the transfer of the site in the first instance from
your parent to you and secondly then there is the stage payment mortgages the drawdown of the funds
in various tranches maybe three maybe four maybe five different tranches there is the certification
of title for the lender there is the taking in of the stage payment certificates from the architect
checking the certificates that are being issued by the architect or the supervising engineer and
essentially standing over then the title documents at the end and ensuring that the bank is satisfied
that it's getting good marketable title so two stages from a professional legal perspective
one is the initial transfer of the site and the other is supervising the stage payment mortgages
disbursing the money to you then to build the property and then ultimately registering
the property if it hasn't already been registered by way of transfer with the property registration
authority and then scheduling the title documents and sending in the title documents along with a
certificate of title to the lender and that's on for of the solicitors undertaking undertaking
to the bank you're looking at a professional fee of probably between fifteen hundred and two and
a half thousand plus fat that will depend on the bill cost that is the professional
legal fee i'm assuming that you're building the house for anything between
two hundred and fifty thousand and perhaps four hundred thousand two hundred and fifty thousand
to three hundred and fifty thousand or thereabouts that's what i'm seeing around my area in enfield
county mead so on that basis then you're looking at a total professional legal fee
of something between 1500 plus fat and two and a half thousand plus fat you're also going to
encourage some miscellaneous legal outlays and costs for example commissioner for oaths fees
in relation to statutory declarations family home declarations and so forth for the lender and you
may well run into some miscellaneous outlays that will be required the biggest feed or the biggest
outlay and cost is probably for the supervising architect i'm guessing that but there would be
obviously a quite a bit of work involved for the architect in supervising the build and in
perhaps dealing with the planning application in the first instance perhaps getting it through
planning then supervising then issuing the certificates of compliance with building
regulations and planning information so i would imagine that the supervising architect his fee
or horror fee would be the biggest cost you've got to encounter in a self-built arrangement
therefore i'm just saying to you shop around it will depend on the scope of the services being
provided when i say the scope of the services being provided you might have an engineer or an
architect who will take this from the conception stage and draft up or drop a planning application
liaise with you in relation to design and so on and ultimately then issue the various certificates
supervise the build and sign off on it at the end and give a certificate of compliance with
plan information and building regulations that's a full service you may have a slightly different
arrangement with your own depending on how you are building for example you may only require
vocational visits from the architect i'm not sure in relation to that but you would want to
shop around speak to a number of architects get a few quotes but that is probably going to be a
significant enough cost in terms of building your own property other outlays then to budget for one
or bank valuation the bank is going to want a valuation another 100 percent at what stage they
want to valuation they probably want a valuation of the site but they'll also want evaluation
at the various stages of the stage payment certificate uh from the architect which will
sell out the amount of work that's been carried out the value of that work and how much remains
to be done then one financial contribution to the local authorities and outlay that's one that
you could overlook very easily the likelihood is you're going to have planning permission condition
for which will make provision for a contribution to the local authority that will depend very much
on the local authority westmead kildare mead they all have different sort of
contribution rates as is where i know that means and i know that kill there are fairly
high but again you need to check your planning permission there will be a special condition
there and it will be granted your planning permission will be granted on the basis of
special conditions or certain conditions and one of them will be a contribution to the local
authority for the cost that they will incur in providing whatever services they may provide
for example perhaps improving the road down to the property or whatever whether you actually
see that work being carried out or not remains to be seen i doubt it very much but what you will see
is a special condition or condition rather in the planning information the planning condition that
there is a financial contribution to the local authority and this is an easy and easy outlet that
you're going to incur it's an easy one to overlook because you can get carried away with the build
you can get carried away especially coming towards the end in relation to kitten out the house with
furniture and fitted kitchen and tiling and bathrooms and floor coverings and all that crack
but you may have overlooked the financial contribution to the
local authority don't make that mistake um that's me terry guardian company solicitors
in enfield i hope you find the video useful if you do give it a thumbs up down below thanks a lot