Value band for LPT of newly bought house

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barbaros

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I just bought a new house as part of affordable housing scheme. While getting the mortgage, bank had valuation done, and the amount was the same as the price of the house, which was €300k.

Now it's time to pay for LPT (soon) and it's asking me for the value band of the house. Should I choose €300k as it was the final price of the house which is value band 3. Or should I continue with estimated value band 2? The difference is €100 between the band values, naturally I don't want to overpay a tax, and apparently it's hard to decrease the value band of the house later on.

So I am not sure if I should go with estimated value band or if I should choose the actual buying price of the house which falls under value band 3 (€300k). As Revenue knows the details of the house (especially because I used Help to Buy scheme also), one part of me wants to believe the estimated value band should be correct, but my other part says "it's not that easy."

Sorry for the newbie question as I am first time house owner.
 
barbaros said:
I just bought a new house as part of affordable housing scheme. While getting the mortgage, bank had valuation done, and the amount was the same as the price of the house, which was €300k.

Now it's time to pay for LPT (soon) and it's asking me for the value band of the house. Should I choose €300k as it was the final price of the house which is value band 3. Or should I continue with estimated value band 2?
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The current market value of the property is obviously what you paid for it so that should be used for LPT valuation purposes. Undervaluing it now is just storing problems up for later.
 
barbaros said:
I just bought a new house as part of affordable housing scheme. While getting the mortgage, bank had valuation done, and the amount was the same as the price of the house, which was €300k.

Now it's time to pay for LPT (soon) and it's asking me for the value band of the house. Should I choose €300k as it was the final price of the house which is value band 3. Or should I continue with estimated value band 2? The difference is €100 between the band values, naturally I don't want to overpay a tax, and apparently it's hard to decrease the value band of the house later on.

So I am not sure if I should go with estimated value band or if I should choose the actual buying price of the house which falls under value band 3 (€300k). As Revenue knows the details of the house (especially because I used Help to Buy scheme also), one part of me wants to believe the estimated value band should be correct, but my other part says "it's not that easy."

Sorry for the newbie question as I am first time house owner.
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Estimate = thin air valuation
Sale price = actual value, because it's real

LPT wants it's actual value.

Band 3 is not 300K, it's 262K to 350K

You'd be hard pushed to argue ever that it's value is 262K, 15% less. And revenue have guidance on all of this. All talk of estimates etc are irrelevant in the case of an actual sale price.

I thought affordable housing was sold at a lower price than valuation?
 
Thank you all.

Bronte said:
I thought affordable housing was sold at a lower price than valuation?
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The market price of the house is €300k, this is stated on the "offer form" sent by construction company, also same amount is stated on the other documents I signed. €60k something of it is, paid by the city council. I signed Affordable Dwelling Purchase agreement with them that puts limitations and rules. On remaining €239k something, I used €30k from HTB scheme, and I got mortgage for the remaining €210k.

I am not sure if the figures above make any difference? Because the actual valuation (which is done 6 months ago) of the house, states it's value is €300k. But €60k something is paid by city council (which makes it affordable I guess), remaining 30k is paid by HTB and 210k by me (via mortgage).

I am not trying to be sneaky or anything as I know it will bite me back in the future.

Edit: About accurate valuation, bank sent an valuer (or whatever is called) that says the house is valued 300k. There are neighbour houses (I have terraced house, they have semi detached houses) that has exact same valuation of 300k. Rebuild cost of the house (stated by the valuer, says it's €252k something)
 
barbaros said:
The market price of the house is €300k, this is stated on the "offer form" sent by construction company, also same amount is stated on the other documents I signed. €60k something of it is, paid by the city council. I signed Affordable Dwelling Purchase agreement with them that puts limitations and rules. On remaining €239k something, I used €30k from HTB scheme, and I got mortgage for the remaining €210k.
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In that case €300K seems to be the fair market valuation and what should be used for LPT purposes.
barbaros said:
Edit: About accurate valuation, bank sent an valuer (or whatever is called) that says the house is valued 300k. There are neighbour houses (I have terraced house, they have semi detached houses) that has exact same valuation of 300k. Rebuild cost of the house (stated by the valuer, says it's €252k something)
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Market valuation and rebuilding cost are two completely different things.
 
barbaros said:
Thank you all.



The market price of the house is €300k, this is stated on the "offer form" sent by construction company, also same amount is stated on the other documents I signed. €60k something of it is, paid by the city council. I signed Affordable Dwelling Purchase agreement with them that puts limitations and rules. On remaining €239k something, I used €30k from HTB scheme, and I got mortgage for the remaining €210k.

I am not sure if the figures above make any difference? Because the actual valuation (which is done 6 months ago) of the house, states it's value is €300k. But €60k something is paid by city council (which makes it affordable I guess), remaining 30k is paid by HTB and 210k by me (via mortgage).

I am not trying to be sneaky or anything as I know it will bite me back in the future.

Edit: About accurate valuation, bank sent an valuer (or whatever is called) that says the house is valued 300k. There are neighbour houses (I have terraced house, they have semi detached houses) that has exact same valuation of 300k. Rebuild cost of the house (stated by the valuer, says it's €252k something)
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You’ve received sound advice on here. Band 3 is the correct one. There are ramifications later otherwise that are not worth it.

It seems you borrowed 100%. The council will have a charge on the property of 60k which will rank second to the mortgage. HTB I suppose is Help to Buy. Is that a loan or a gift or what? Did you not have to put any money up at all?
 
All advice above seems to be incorrect.

Assuming this is a newly built house, then the LPT taxable value for 2025 has to be derived, as it is computed as of a past date. This is because the LPT for 2025 is based on the hypothetical value of the house in November 2021, when it was just a figment of your imagination.

If you purchased it at a market value of €300,000 in October 2024, the valuation for LPT would be €300k/1.23=€244k, if you use Revenue's discount factor.

That would put your property in valuation band 2 (€200k-€263k).

I hope this saves you some money.

Valuing newly liable properties

This page describes how to value newly liable properties
www.revenue.ie www.revenue.ie

Date new residential property was completed or purchasedRevenue Discount Factor
1 July 2024 to 1 November 20241.23
1 April 2024 to 30 June 20241.23
1 January 2024 to 31 March 20241.22
2 November 2023 to 31 December 20231.20
 
That’s good to know, about that method of backdating the value. The OP will save €90 . He night have to pay nothing if he’s not in the house before yesterday.
 
I forgot to check this thread and didn't see the valuation factor and I chose the LPT Band 3 like an idiot and submitted my LPT valuation. I sent them an inquiry explaining this and asked to be switched to LPT Band 2 but let's see, worse case scenario I will be paying 90 Euro extra for each year :(
 
You'll get a reply after about 2 weeks, I presume you did it under 'my enquiries' on the LPT website. You're not an idiot, it's not immediately clear to people what to do. Some of us had no clue revenue had created a new discount webpage.
 
You could also just give them a call.
I found them very helpful on the phone when dealing with 10 years of outstanding LPT plus interest (and other issues with the LPT account) recently.
 
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