Conveyancing is the legal process of transferring ownership of property, whether it’s land or a house, and applies to both the Republic of Ireland (ROI) and Northern Ireland (NI). If you're completing a self-build, you’ll need to ensure you have the appropriate documents for future sale and understand potential tax liabilities and duties.
Key Documents for Selling a Self-Build
Once your self-build is complete, having the correct documents is essential in case you decide to sell the property. Some important documents to retain include:
Certificate of Compliance with Building Regulations:
- In NI, this is issued by Building Control, and in ROI, it is provided by your certifier (usually an architect, engineer, or surveyor).
- This certificate verifies that the building complies with local building regulations.
Certificate of Compliance with Planning Permission:
- Issued by your certifier, this document confirms that the build meets the conditions outlined in your planning permission.
- Note that in ROI, the build must usually begin within five years of planning permission being granted.
Building Energy Rating (BER) Certificate:
- In both ROI and NI, you are legally required to obtain a Building Energy Rating (BER) certificate before moving in, even if you’ve built the house for personal use.
- This rating assesses the energy efficiency of the property and is a mandatory document for all homes.
Tax Liabilities and Stamp Duty:
- In ROI, there may be tax liabilities associated with property ownership and sale, including potential Capital Gains Tax (CGT), depending on the situation.
- In both ROI and NI, stamp duty is due when transferring ownership, which is a tax based on the property's value at the time of sale.
Mortgage Considerations and Bridging Loans
If you own an existing home while building a new one, there are different financial strategies to consider:
Selling the Existing House:
- If you sell your existing home, you can use the proceeds to clear your mortgage and start from scratch with a self-build mortgage application. However, this would likely mean renting or living on-site during the build.
Retaining the Existing Home:
- If you are in a strong financial position, you may be able to obtain a mortgage for your self-build while keeping your existing home. Once the old house is sold, you may have the option to pay off a lump sum on your new mortgage without penalty, depending on your mortgage terms.
- Bridging loans provide short-term financing that allows you to live in your current home until the new one is built. These loans can be difficult to obtain, but market conditions change, so it’s worth checking with a mortgage broker or bank to explore what options are available to you.
Final Steps Before Selling or Moving In
Before selling your home or moving into your self-build, ensure all required certifications and tax obligations are in place to avoid future legal and financial complications. This includes:
- Certifications of Compliance with building regulations and planning permission.
- Building Energy Rating (BER) certificate for energy efficiency.
- Paying stamp duty and understanding any applicable tax liabilities.
- Securing the best mortgage or loan options for your financial situation, including the possibility of lump-sum payments or bridging loans.
Proper planning and documentation during the self-build process will make future transactions, whether selling the property or transferring ownership, much smoother and legally compliant.