Living overseas - letting a property here

[Bronte]

Thirsty I believe Leo is correct. I have a granny flat. Currently unused. I went to get planning to convert the space into a two story extension to create a separate unit and I did not apply for it as such, just as an extension to the family home. I did that precisely because I knew I wouldn't get permission as a separate unit. It's what many people do. Just so you know. If you're selling you just don't sell it as a separated house. (that's why you make sure you have an internal way to get into it (in my case I plastered up the door, neither the house nor the flat know it exists there behind the cooker !). I've often seen houses being sold with granny flats but the majority of them have no planning. As my flat is now there more than 20 years there is nothing the council can do to me about it.

Others, like Leo, would not counsel people to go down this route. You'll find it next on impossible to get permission though. (Leo might confirm).

Rent a room

As long as the structure is part of the house, ie basement flat or converted attached garage it qualifies. A chalet in the garden does not.

 

[Bronte]

Thanks for that Bronte. I did check about the funding and it is possible - might depend on the LTV but I guess if you're putting up a half or thereabouts they should be interested. Had a call with these folks www.newmoney.ie and they were interested - rates vary from 4.5% to 5.25%, this company also does interest only (which is not the goal but just FYI).

I take your point on a possible significant other coming out of the woodwork but at least he'd have the option to cash in and convert his equity to US$ and he'd be on the ladder over there.

I would worry about such a lender. As you know on AAM you get varying viewpoints. Many posters are against the idea of investment properties. As you also know, I am not. It's all I know about and I can assure you that as I know knowthing about 'investing/shares' etc and it has been my experience that I made the right decisions for me. I've seen the highs and the low, the bad tenants, the nightmare tenant and the mostly excellent tenants. To me at the end of the day, if the property is giving a good return and is ticking away there in the back ground nearly paying for itself eventually you get to own it and you are then your own person. Your son's money might as well be going somewhere he will have something to show for it as spending it on flippers in NY. BUT you must do the sums. When I stared out interest rates were in double digits for some people. And property can indeed go up as well as down.

 

[Thirsty]

As long as the structure is part of the house, ie basement flat or converted attached garage it qualifies

I believe we are saying the same thing. You can add an extension/convert a garage or attic and achieve a 'granny flat' set up without planning as long as its under 40 sq m; and that set up qualifies under rent a room.

 

[Leo]

Not to be starting an argument, but I wonder if that's the case?

from Revenue's leaflet

"The room or rooms can comprise a self-contained unit within the residence such as a basement flat or a converted garage attached to the residence" (which is what I would term a 'granny flat').

and from Citizens information...
Generally you do not need planning for...
"Converting a garage attached to the rear or side of the house to domestic use provided it has a floor area of less than 40 square metres."

So it seems to me that as long as you are under the 40 sq m, you could design a garage conversion to have say a shower room/small kitchen and legitimately include that space under rent a room?

So Revenue don't exclude it from the scheme as older self-contained until would not be subject to the planning issues, and planning compliance isn't in their remit. Since at least 2001 (and probably earlier versions of the acts), it has been illegal to sub-divide a property to create a granny-flat without full planning permission being obtained. Any planning I have seen granted for granny-flat type units includes as a condition that it never be let or occupied by non-family members. In Dublin, you must provide the Council with details of who will occupy the flat and justify their needs. The planning generally states that once the need for a granny-flat no longer exists, the unit must be merged back into the main house.

So in essence, if you have a granny-flat, you can avail of the rent-a-room scheme. The problem arises if you are reported for doing so without planning being in order. If that happens the council will send you an enforcement notice giving you a time frame in which to sort out the situation, detailing the costs that will be levied if you don't do so.