Plan ahead for a better home

Correct planning will help prevent home improvers leaking money, writes Laura Slattery.

From families who want to extend their living space without having to pay stamp duty, to the house-proud who want their home to reflect the latest interiors magazine "ins and outs" lists, home improvement is a constant and expensive enterprise.

As the last - and biggest - batch of Special Savings Incentive Account (SSIA) holders finally gets access to their cash at the end of this month, the services of builders, kitchen fitters, plumbers, electricians and decorators are likely to be in heavy demand.

However, giving your home a facelift can involve more than just shelling out cash, and getting each step of the process right will help prevent home improvers leaking money.

PLANNING PERMISSION

Extensions that do not increase the floor area of a house by more than 40sq m and are not higher than the house do not generally require planning permission, but this will also depend on how much open space there is at the back of the house and whether the house has been extended before.

A full list of the type of changes that do not require planning permission is available online at www.citizensinformation.ie under the housing section, but in order to avoid any messy legal issues later on, it is always best to check with your local authority before starting any work.

Applications for planning permission need to be made to the planning department of the local authority - your architect or engineer should help you complete the application. A leaflet on common planning issues that arise when making alterations is also available from the Department of the Environment, Heritage and Local Government.

HIRING PROFESSIONALS

If you want to err on the side of caution, it is a good idea to avoid tradespeople who only advertise mobile phone numbers, as they can be difficult to track down easily if a dispute arises.

For major extension projects, or if you are looking for creative advice, you may want to employ an architect to do the plans, although this will usually add at least 5 per cent to the cost of the project. Look for an architect who belongs to the Royal Institute of the Architects of Ireland, who will have professional qualifications. This is important as the title architect is not protected in Ireland, meaning anyone can call themselves an architect.

Building contractors should be fully insured with a C2 tax certificate, while many builders, carpenters, decorators and other contractors are also members of the National Guild of Master Craftsmen, which keeps an online register of its members on www.nationalguild.ie. Many electricians will belong to the Register of Electrical Contractors of Ireland, which also maintains a county-by-county list of registered electricians at www.reci.ie

CONSUMER PROTECTION

Under the Sales of Goods and Supply of Services Act, consumers are entitled to expect that people supplying a service have the necessary skill, that they provide the service with the proper skill and care and that any materials they use are of "merchantable" quality.

The National Consumer Agency advises people who are getting building work done on their home to insist on a written quote rather than just an estimate.

The contract should cover likely problems or possible misunderstandings, including when the job should be completed, how payments should be made, the circumstances under which you might be entitled to a return of any deposit and a guarantee that the contractor will fix any problems that occur for a fixed time after the job is finished.

Homeowners who have unresolved disputes with contractors can ultimately go to court. With a fee of just €9, the Small Claims Court is a cheap and solicitor-free legal route, but only if the amount involved is €2,000 or less.

BORROWING MONEY

If your matured SSIA is modest, or if you're planning major building work, your savings might not go far enough, especially as budgets tend to spiral when it comes to home improvement.

People who want to borrow cash for home improvements face a choice: should they take out a top-up on their mortgage or opt for an unsecured personal loan?

The advantage of the former is that the interest rate will be lower than personal loan rates. However, if the loan is repaid over the full term of the mortgage, it won't end up any cheaper than a personal loan, which will typically be paid back between one and five years.

There may be legal fees for the top-up mortgage, meaning it will not make sense if you just need a few thousand extra, and homeowners should remember that they are using their home as security for the loan. Used correctly though, a top-up mortgage for home improvement does make sense. Most improvements will add to your property's value and can be classed as a good investment as well as a major outlay.

INSURANCE

The builders are gone, the shards of dust and wood have been vacuumed away and there is peace, quiet and excellent paintwork in your new conservatory/ attic conversion/bathroom.

That should not be the end of it. It is important to update your home insurance policy so that it covers the cost of completely rebuilding your new and improved house. Wooden floors, better-than-average kitchen fittings and garage extensions will all add to this cost, meaning the existing policy is probably underinsuring your property.

It might also be a good idea to increase the value of the contents insurance, especially if you have spent every weekend in recent memory handing over credit cards in furniture shops.