wanting to sell house and to build

L

lanie

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Hi, I would love to sell my house and build on a site that is at the back of my parents home house. Problem is to sell my house it would leave it us in negative equity. I know that banks require you to cough up the negative equity amount before they release the deeds. (well this is what I presume they would do!) Anyway we were just wondering would there be any more of chance of them letting us transfer the negative equity amount onto a small mortgage to build our own house. The mortgage would be much lower than buying a different house as my parents own the land and we wouldn't have to pay for the site just the building process.
Many thanks for any advice.
 
Hopefully. My dad would have to get it passed in his name if he could get it any easier. Otherwise he'll put it in my name or my partners name. If we could get it passed do you think the bank would look more favourably on our situation.
 
The amount to be transferred would be around 15,000. Would it, or part of it be possible?
 
I'm not sure about the money part of it but as regards planning its gone very tight. As your Dad already has a home will he be given planning in his name, I doubt. You have a house also so you don't have need for another they will tell you. Check that one out.
 
lanie

Why not apply for planning and see what happens. Planning process likely to take 6 months +. Could be much longer - deciding on house layout, drawings, application, further information, Bord Pleanala etc.

If you take the glass half full approach ( scarce these days ) to the economy perhaps you will no longer be in negative equity by the time you are ready to sell / build.

Word of warning for when the build is imminent. Most punters including yours truly drastically underestimate the cost of building and finishing their own home. Lots of people will telly you to get a budget and then add 25% fro changes / contingencies. I would say a figure of between 25% and 50% is more realistic. Builders tend to offer quotes for the bare minimum and disguise this fact cleverly. So you will find yourself adding extras, changing for better spec etc. All money!

Good luck
 
Maybe even if you could arrange a pre planning meeting you might get a fair idea of how they feel about this first. Is the house you own in the same area as where your proposing to build.
 
Thanks for the advice everyone.
I am based in the North of Ireland where PPS14 was brought in 3 years ago which put a ban on all building in the rural countryside. This prevented us applying for permission and we had to buy a house in a neighbouring town in a county a small distance away. However, word is control has relaxed slightly and there are more criteria allowed that can be met now in order to achieve planning permission. This was why we were going to try for pp now.
 
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