Does my insurance extend to extensions?

Q My house insurance is currently up for renewal and I am trying to figure out the cost to rebuild. It is a Dublin semi-detached four-bed. The width of the house is 7.4 metres and the length is 13.80 metres (13.80 x 7.40 = 102.12m2). I have no idea what to do with this figure.

Presently the building is insured for €250,000 and I think it may be under insured. There is a small extension utility room at the back which I have included in the total length of the house (length: 275cm). I am not sure if I am correct in including it. I hope you may be able to shed some light on the subject.

A Firstly, the rebuilding value is the estimated cost of rebuilding the house in the event of a total loss situation such as a fire or similar event. The sum includes the structure and finishes: foundations, floor slab, external and internal walls, upper floors, roof, windows and doors (internal and external), plaster and paint to walls and ceilings, floor finishes, plumbing and electrics, sanitary ware, standard kitchen fittings, drainage connections and reinstatement works externally.

Rebuilding costs are based on the floor area of your property. This includes everything within the external wall of the property. Therefore, as long as the extension is a building onto the main house, the area should be included in the floor area of the property.

Outbuildings are not to be included in the floor area of the house and rebuilding costs should be calculated separately for these buildings.

The Society of Chartered Surveyors produce minimum guide costs for rebuilding residential properties. The guide figures are based upon 1960s estate type houses built in Dublin, Cork, Galway, Waterford, Limerick, North West and North East regions.

Properties which are “one off” houses, protected structures or more than two storeys high are not included in the guide figures and owners should consult expert advice from their local chartered quantity surveyor.

More information can be found on the SCSI website at scsi.ie. Kevin Brady is a chartered quantity surveyor.

Mortgage pitfalls

Q My wife and I are looking to get on the property ladder and are considering taking out a mortgage in the region of €150,000. I am in full-time employment earning approximately €35,000. My wife is working part time. My question is this: would it be more prudent to make a single mortgage application or make a joint one with my wife? Are there any pitfalls we should consider when making a joint application?

A Speaking as a chartered surveyor and not as a banker, I would suggest using all your earning power, ie both your and your wife’s incomes, in making the loan application. This will show your maximum lending capacity and open all the options.

The current lending rule is three and a half times your combined incomes. As you are married, your wife’s name must go on the application and the mortgage deed due to family home protection laws.

Your wife and any children you may have will be treated as dependents and this will be taken into consideration when assessing your lending capacity and ability to pay back the loan, so both incomes will be a help.

If you are buying as an investment property and not a family home, you may be able to buy in your own name and a joint application may not be insisted upon.

This often happens if you are buying through your business or if there are tax breaks you may want to spread across other commercial interests.

Lastly a joint application entails joint life cover for both you and your wife, giving you all protection, an area which borrowers often overlook. Felicity Fox is a chartered residential agency surveyor and a member of the Society of Chartered Surveyors Ireland (SCSI).

What’s the storey?

Q I have permission to convert my existing side garage into a habitable room and a first floor side extension (double storey extension). On the same planning application I can build another attached garage next to the double storey extension.

The quotes I’m getting from builders are very expensive and so I have decided only to build a single story side extension and maybe a garage as well, depending on the cost.

Do I have to resubmit my planning with new drawings or can I go ahead with the single storey as I already have permission for the double?

A While it is great to see a recovery in the Irish economy, one downside to this is an increase in construction costs. The SCSI reported a 5 per cent rise in construction tender prices in 2014 and this trend is likely to continue in 2015. When undertaking any substantial construction work, it is advisable to seek quotes from several builders to ensure that one obtains a competitive price, and the best value.

In this case, a new planning application would be required if one decided not to construct the first floor extension and to convert the existing ground floor garage only.

When planning permission is granted, it is done with several conditions attached. One of those conditions will probably state that the development must be constructed in accordance with the plans submitted and approved. If this condition is not adhered to, then technically it would be an unauthorised development.

Also, if a new planning application is made within six months of the original application, the new site notice must be inscribed on a yellow background. This signifies that it is a different planning application to the first.

While making another planning application may be frustrating, it is better to follow the right process now and avoid any potential enforcement action later on by the local authority.

Finally, the advice I give to all my clients is to try to ensure that, prior to committing to the actual build, the design meets, as much as possible, their current and future requirements. Submitting a new planning application is relatively simple. However, changing a building’s layout and design is not straightforward once it has been constructed.

Andrew O’Gorman is a chartered planning and development surveyor, a chartered building surveyor and a member of the Society of Chartered Surveyors Ireland.