The experts answer readers' questions
Do I need an architect to alter kitchen plans?
Q I need some minor alterations to architects designs for my kitchen extension – a different roof shape and internal steps marked to deal with our sloping site. Should I employ an architect to draw these or just allow the builder to adjust on site?
A Yes, you should employ the services of a professional which may be an architect, engineer or chartered building surveyor. In most residential construction, the use of a professionals services is optional and very often a good builder is capable of such alterations.
I’m sure you wonder if a professional’s involvement in the project at this stage will drive up the cost. By thinking through and drawing the proposed alterations in detail, a suitably qualified professional can identify potential trouble spots where special attention may be required, thus minimising surprises and controlling costs.
Other benefits of taking such professional advice include getting answers to the following questions:
Are the alterations exempt from planning permission?
How will any alteration affect the structural integrity of the roof?
Will any alteration to steps comply with the building regulations?
Will this alteration fit with or contrast with the existing design?
I assume you have had professional advice to get the project thus far and if you continue with that professional advice, the expert will have a better understanding of the form of construction and how to alter the plans economically.
It will be difficult for the builder to give impartial economic advice on costs of construction. However, he can offer constructive advice on building methods and material suppliers.
The best advice is to employ a professional to supervise the works to completion, but if funds do not provide for that, at least consider a series of staged interim inspections at critical points of the construction, for example:
1. Foundations dug, reinforcement in place, prior to pouring of the concrete.
2. Roof structure complete prior to loading with slates/tiles.
Employing a building professional should ensure quality, value and peace of mind.
Pat McGovern is a chartered building surveyor and chair of the Building Surveying Professional Group of the Society of Chartered Surveyors Ireland, scsi.ie
Is granny flat exempt?
Q My wife and I live in a granny flat in my son's house. Do we, as well as my son, have to pay the household charge? I could not find the answer on the householdcharge.ie website.
A The Department of the Environment’s household charge customer service department accepts that this is a tricky area, because it depends on whether the granny flat is a separate dwelling or not. A spokesperson said if it is truly separate and could be rented out as separate accommodation, then the household charge is payable on both the main house and the granny flat. However, if the granny flat is more like an extension, with a shared entrance and maybe some shared facilities, then it is not separate and you would not have to. Only your son would be liable for the household charge.
You will have to decide this yourself. However, if you are anxious for a more categorical answer, the spokesperson suggested taking pictures of the property and consulting someone in your local council’s planning department to get their opinion.
I am presuming for the moment that the house is not in an unfinished estate, and that you or your son does not qualify for one of the waivers or exemptions as prescribed by the legislation for the household charge. The Act describes a residential property as “ . . . a building . . . that is occupied, or suitable for occupation, as a separate dwelling, whether or not the owner shares, or would be entitled to share, in connection therewith, any accommodation, amenity or facility with any other person”. This covers flats/apartments/ maisonettes/bedsits and stipulates that the owner of a building is liable for a charge in respect of each residential unit.
What is not defined is what’s “suitable for occupation as a separate dwelling” – in other words, in order for it to be separate, does it need its own utility connections? What is clear is that if a house is let as one unit to a number of occupants, then only one charge is payable.
Legislation on the second home tax, the precursor of the property tax, is clear – if you live in a granny flat, within 2km of your son’s house, then the NPPR is not due. You would expect that both pieces of legislation would be consistent in terms of basis of assessment, and similar logic should apply to the household charge.
The responsibility of the charge(s) falls to the owner, not the occupier, so it is the son here who must bear the responsibility of deciding if he is liable for both charges and it is up to him whether or not he seeks to recoup the charge from his parents.
Ed Carey is a chartered surveyor and chair of the Residential Property Professional Group of the Society of Chartered Surveyors Ireland, scsi.ie
How long do property incentive schemes have left?
Q How much longer can investors benefit from property incentives schemes which the Government is planning to phase out?
A The question probably stems from Budget 2011, where the Government clearly stated that it was phasing out several property incentive schemes. However, following a report entitled Economic Impact Assessment of Potential Changes to Legacy Property Reliefs in early 2011, the phasing out of the bulk of the incentive schemes, including the Section 23 and Section 50 schemes was postponed.
In my opinion, this was largely due to the potential detrimental financial impact on the many purchasers of investment properties and the possible knock-on effect on the financial institutions and, ultimately, the taxpayer.
It is important to point out that the Government did introduce some significant changes to some of the property incentive schemes in Budget 2012. The introduction of capital gains tax (CGT) relief on commercial property (including residential investment property) for properties purchased up until December 31st, 2013, and held for at least seven years, means investors will not be liable for CGT for those seven years.
Stamp duty on commercial property has been reduced to a flat rate of 2 per cent, and the Government brought clarity to the retrospective ban on upward-only rent reviews, by stating no such ban would be introduced. Budget 2012 also introduced an additional universal social charge (USC) on rental incomes where the gross income exceeds €100,000, and phased out the use of unused capital allowances for certain property investors from 2014.
Furthermore, the agricultural sector benefited from some important measures, and these include stamp duty relief for inter-family land transfers until 2015, and full CGT retirement relief for retiring farmers between the ages of 55 to 66. Capital gains tax retirement relief also applies to certain other qualifying business.
For first-time buyers (FTBs) who purchased homes between 2004 and 2008, mortgage interest relief has been increased to 30 per cent, which will be of benefit to those who purchased at the top of the market, and it has been increased to 25 per cent for FTBs who decide to purchase in 2012.
Ed Carey is a chartered surveyor and chair of the Residential Property Professional Group of the Society of Chartered Surveyors Ireland, scsi.ie
