Pre ’63 Property Investment Frequently Asked Questions

What we’re asked the most.

Griffin Solicitors has advised clients on Commercial Property and Business Law for many years building up a wealth of corporate experience and expertise. Contact our offices and allow us to put that knowledge to work for you.

How much is stamp duty on a pre ‘63 house?

The stamp duty rate on a pre ‘63 multiple use property is 1%. The normal stamp duty of commercial property is 7.5%. However, pre ‘63 properties are classed as residential properties and are taxed at 1%. 

How long does it take to complete a property investment purchase?

If you have a willing seller with an efficient solicitor and a willing buyer with a good solicitor, and the buyer has cash in the bank which is accessible then the transaction will take about 4-6 weeks. In practise, this is rarely happens. 

If the buyer is obtaining loan finance, then the transaction will take about 6-8 weeks.

If the buyer is obtaining loan finance with a full investigation of title, then the transaction will take approximately 8-10 weeks to complete.

The above periods do not allow for slippage of time as a result of revised loan offers or people being away on holidays.

What does your solicitor do for you?

Some people think the solicitor is there “just to do the paperwork”. However, a good solicitor will know their clients’ needs and will help the transaction move smoothly. However, the solicitor’s job is to ensure that if the week after buying the property, you decide to sell it, that you will not have any title or planning problems which will prevent or delay the sale. The day you buy, is the day you sell. The solicitor will check the title (the ownership of the property) and the planning documentation. 

 

If the property has ownership or planning problems when you buy it, they will still be there when the property is sold, unless rectified in the meantime. 

I’m taking out a mortgage, should I take out a fixed rate or a variable rate mortgage?

The majority of people in Ireland have a variable rate mortgage.

Fixed rate mortgages have become more popular in recent years.

When a bank puts a fixed rate product on the market, it will normally appear a lot more competitive than variable rate mortgages. However, variable rates change, and over a period of 2-3 years, fixed rate mortgages can look very expensive.

The banks are professional at lending money. They normally have a better idea of what is going to happen with lending rates than any single individual. Having said this, the banks can, and do, get it wrong e.g. tracker rates mortgages.

What are the common delays in property investment transactions?

The property conveyancing system relies on all parties to the transaction co-operating and doing their work on time. These parties include buyer, seller, buyer’s solicitor, seller’s solicitor, mortgage broker, estate agent, and lending institutions. It only takes one of the above parties not to do their job at the correct time for the transaction to be delayed. It is rare to have a transaction where all parties cooperate, and everything runs exactly on time.

Both buyers and sellers need to be well organised. The seller needs to have instructed his solicitor to prepare a contract early. In order for the solicitor to do this, the seller needs to have given the title to the property to his solicitor. The seller needs to have planning permissions and opinions of compliance obtained, LPT printouts ready and paid within the allowable bands, and NPPR certificate obtained from the local authority.

The buyer needs to have a full written loan offer in place. In addition, the buyer needs to comply with all conditions in the loan offer at the earliest opportunity. For example, the buyer needs to put his mortgage protection policy in place approximately two weeks before drawdown.

How can a solicitor make a property transaction go smoother?

The solicitor must advise the client as to what needs to be done and when it needs to be done in order for the transaction to run on time. 

For the seller this means having:

  1. The Title Documents ready. 
  2. Planning permissions and opinions of compliance in order.
  3. NPPR certification from the local authority.
  4. LPT printout.
  5. Anti-money laundering documentation.

For the buyer, this means having:

  1. The survey done early.
  2. The written loan offer in place.
  3. Satisfied all conditions to the loan offer at the earliest possible stage. E.g. Put the life cover and house insurance in place 2-3 weeks before completion.

Still can’t find your answer?

If you have some unanswered questions please feel free to contact us and we will be happy to help you with your query.

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