Building a house- mortgage amount

Hi All,

Need some advise on our build & amount we can borrow:

-Own site which just had planning granted.No loans on this.Worth 70K.
- Currently doing up spec to go to builders for costing. Say costs 200K?
- Council Levy is 9K.

Will we be able to include the 9K in our mortgage? Can we show it or should we 'hide' it in the costing breakdown as such. How does that work?
I'm thinking that since the value of the house is more than the build 200K costs, this would be okay to borrow for as well?

Thanks in advance

There was a recent thread on this issue-I can't recall enough detail to construct a coherent search-and I believe that you can include the council levy in your mortgage amount.

Thanks for your help
Yeah, I saw Levies mentioned in some posts with slightly different circumstances- but wasn't sure whether exact scenarios and owning the plot would/ wouldn't make a difference.Hmmm.

Hey micheller,
1st of all if this levy you mention is the development contribution it can be paid in 4 installments over the duration of the build ... So in your case 2,250 ... You may be able to make that up yourself ... The next installment could be when the first stage of the build is certified and the architect puts the figure on the cert ... My first stage came to 45,000 but the architect agreed to put 55,000 on the cert ... By doing this thru the build we were always ahead of ourselves with cash in the bank for things like contributions, stamp duty, architects fees etc ...
Most banks will not look for an accurate breakdown of what the stage payment cost ...

You bank will usually allow a 100% mortgage on the build cost (seeing as it will surely be worth more after its built), and the council levy is seem as part of the necessary build cost. And its not really that much extra. Its not unusual that a 2000 sq.ft house that cost 200k to build would be worth 400k(ish) when built. Thats a loan-to-value of 50%, which is VERY attractive to the bank.
In fact, even if your build cost is 200k, you can still borrow any amount abouve that (furniture, car, whatever), within affordability and reason.

Salem said:

Hey micheller,
1st of all if this levy you mention is the development contribution it can be paid in 4 installments over the duration of the build ...

Click to expand...

Is this the same thing? This is one of the conditions on our planning application? Be great if we could pay this in installments.

Prior to the commencement of development the developer shall pay the sum of €3,414 (three thousand four hundred and fourteen euros) to Sligo County Council as a contribution towards expenditure that was and/or that is proposed to be incurred by the planning authority in respect of public infrastructure and facilities benefiting development in the area of the Authority, as provided for in the Contribution Scheme for Sligo County made by the Council.

€2,472 Water Facilities
€471 Town/village improvements, car-parking/roads
€471 Libraries, museum, community/cultural development

Reason: It is considered reasonable that the payment of a contribution be required in respect of the public infrastructure and facilities benefiting development in the area of the planning authority and that is provided, or that is intended will be provided, by or on behalf of the Local Authority

Hi There,

Yep- I believe so. If you ring your council they'll advise you of the different payment schemes available. Hope that helps
M.

Just rang council:

Not the done thing to pay it in installments unless you have severe difficulty in making the payment. Your case would be dealt with by the enforcement section who would make a judgement as to if it is applicable to pay it in installments.

So I guess its lump sum all the way!