Q I'm in my 20s and I am about to buy my first apartment. It seems to be a good deal. I have noticed there is some damp resulting from water finding its way into one of the bedrooms through the balcony above me.
I should be paying for it to be repaired in the next month or two, and once I do the management fee of about €2,000 will be due. My builder has told me that the management company is responsible for fixing this water problem. I've spoken to one or two other tenants in the building, and apparently the management team can be very slow in dealing with issues.
My concern is that once they have their fee they'll be slower to pay attention to my problem, urgent as it is. I'm quite concerned as I won't be able to rent out that room until the leak is fixed, and I don't want that to take months.
So the question is: do I have any legal right to withhold the management fee until this is fixed?
A You do not have the right to withhold paying your management fees. Members of an owners’ management company (OMC) are legally obligated to pay their service charges each and every year regardless of any material issues arising, which may ironically be as a result of other members failing to pay their charges. Your solicitor acting in your interests should adequately inform you of the basic formalities of apartment ownership and of your responsibilities and rights within a multi-unit development.
It would be absolutely necessary to engage a building surveyor to check the apartment and the development thoroughly. The cost for this may be prohibitive but nonetheless it is information you will need to make an informed decision. You say that the apartment is a good deal, but this cannot be verified without the knowledge of how prevalent the balcony issue may be throughout the development. If the issue arises elsewhere, it will be a shared problem for all the members of the OMC, of which you are considering becoming a member.
I would caution against any purchase of a property where immediate finance is required by way of letting. The lending institution should adequately stress test you to ensure that you are able to make mortgage repayments, that you can afford to buy the apartment, pay the service charges on time in full each year and part-finance the rebuild of the balconies in the development. If you can manage to pay all your bills without renting a room, then it may perhaps be a great deal.
The main issue that would be outside of your control is the ability of the other property owners to pay their service charges in full and on time, so that the operational and reinvestment funds are available. The members will also require the engagement of a competent and efficient agent and the participation of an enthusiastic board of directors. I understand that the two pillar banks will be releasing about 1,600 residential buy-to-let properties onto the open market shortly. It might be worthwhile to review the recent “SCSI Service Charges in Multi-Unit Developments Survey” – you might revaluate your options.
Paul Huberman is a chartered surveyor and member of the SCSI’s Properties and Facilities Professional Group
Q I have just purchased a second-hand home in north County Dublin, which I plan on making a number of renovations to. When you enter the house through the front door, you immediately enter the livingroom and I believe that, at one time, there was a wall with a door here which led into the livingroom. Would it be easy enough to restore this and insert a partition wall with a door to make a hallway? I was considering using timber. Is this feasible and would it be expensive?
AThe proposal you describe will possibly not require a formal commencement notice under the Building Control Act. However, all building works are required to comply with the building regulations no matter how small, hence you are right to consider how to proceed.
Whenever planning internal alterations to a property, start with a good quality measured survey drawing of the existing building to a large scale. This will enable you or your professional adviser to correctly design the proposed alterations to ensure they comply with the building regulations and that you avoid any potential costly oversights.
There may have been good reasons why the wall was removed in the first place such as the room being small, better use of corridor space or to allow better access. A scale drawing will enable you to accurately assess the effects of replacing the wall, furniture layouts and where best to put doors.
If the wall once enclosed the staircase as would be normal in many properties, replacing the wall may be a good safety measure in case of a fire. Accordingly, a minimum of half-hour protection should be created including the door, which should be self-closing if it lies on the principle escape route from the building. If the building has more than two floors, additional requirements might apply.
A timber stud wall or metal stud system with 12.5mm plasterboard and skim each side may, as you suggest, be the least costly way to achieve the new division. I would suggest that you consider looking at Lafarge or Gypsum systems online to get an idea of how these are put together.
You don’t say how large the wall is but you might budget at about €75 per metre for a 2.4m-high wall for the basic structure. You will also have to consider the finishing works such as skirtings, architraves and decoration, as well as services that might need to be relocated such as radiators and electrics. You must also consider additional electric sockets and where these might best be positioned.
From what you describe, a competent tradesperson can probably advise you, but for real peace of mind you should consult a chartered building surveyor who can also provide certification of compliance. Fergus Merriman is a chartered building surveyor and a member of the SCSI Building Surveying Professional Group
Q I have an interest-only tracker mortgage which is due for repayment in July 2015. I am planning to pay off the mortgage in December this year. What proof of settlement should I get in return for paying off the mortgage?
I am not anticipating any difficulty in executing this transaction. However, I certainly do not want to be in the position of having paid off the mortgage without having proof that the lending institution no longer has any claim on the property. Should I engage a solicitor to help ensure that the settlement will be full and final?
ARepaying a mortgage on a property is more or less the same as paying off any other type of loan to a financial institution. As the capital sum is paid off the balance remaining decreases until eventually the loan is repaid. In your case, you have been paying interest-only on your mortgage, with the capital sum due for repayment next summer.
If you wish to redeem the mortgage in full, in advance of its due date, I would recommend you contact your financial institution requesting in writing the full redemption amount as of your intended date of full repayment.
The amount confirmed should be the full and final amount payable as of that date. Lenders will also confirm the interest amount payable per day after that date.
If the information received from the financial institution varies considerably from the amount you are expecting to repay, make contact with your lender straight away.
With a tracker mortgage, or variable- rate mortgage, there generally are no interest penalties for early capital repayment. However, with fixed-rate mortgages there can be interest penalties included for any early redemption within the fixed-rate period. Lenders will provide these figures upon request.
Once you have paid the amount due, you will receive a statement from the lender confirming the balance at zero and that you have repaid the mortgage in full.
As the lending institution no longer have a mortgage against your property, it will contact you to arrange for the return of the title deeds of the property, which have been held by the bank since you took out your mortgage. Once returned, you should certainly find a safe place to store your now mortgage-free title deeds.
While it isn’t necessary to engage the services of a solicitor to complete the above transaction, you may wish to take legal advice.
John O’Sullivan is a chartered surveyor and a member of the SCSI Residential Agency Professional Group Got a query? Send your queries to propertyquestions@irishtimes.com or to Property Clinic, The Irish Times, 24-28 Tara Street, Dublin 2. This column is a readers’ service. Advice given is general and individual advice should always be sought
