Property Clinic

Q We have just bought a second- hand house in Dublin – but it needs a lot of work. We will have to move while this is being carried out but don’t want to spend money renting elsewhere. I’ve heard of people putting a mobile home or caravan in the garden. Do you require planning permission for this? We have three kids aged four to 10. Is this a workable solution? I think the work will take three or four months. Any other ideas?

A Placing a mobile home on any site for living purposes requires planning permission. However, a mobile home may be stored on a site for a period of six months provided it is not connected to any services.

When submitting a planning application to redevelop a house it is not uncommon to include a statement in the application that a temporary structure such as a mobile home will be installed for the period of the construction and seeking permission for such an installation.

As you have not referred to a planning application or permission for the actual building works to your house you may in this case have to submit a standalone planning application for the temporary structure.

It is also advisable to consult with a planning officer in your local authority in this regard as they should be in a position to talk you through the steps required for making a planning application.

If you do not follow correct procedure, you may be at risk from adjoining neighbours who decide that your temporary use of a mobile home in your own garden is a matter for complaint to the local authority.

In this scenario, it is likely that the local authority will require the unauthorised use to cease after which a planning application for the temporary structure can be submitted. This could require you moving out of the mobile home during the construction process which could be very disruptive and costly. Therefore applying for a planning application up front will remove any of this risk.

Finally you should consider seeking the advice of a planning consultant, architect or chartered planning and development surveyor who specialises in domestic planning applications as they will ensure that the application is submitted in the correct way.

Michael Cleary is chairman of the planning and development professional group of the Society of Chartered Surveyors Ireland

Q I am in a joint mortgage with my brother, and we both want to move on from it. The circumstances are as follows:

We bought a three-bedroom semi in north Dublin in early 2006 for €382,000.

My brother wanted to get on the property ladder, and I was living in a rented apartment with my young son. We got a joint tracker mortgage even though I was on a three month temporary contract.

We now owe about €300 ,000 to the bank on our tracker mortgage, 28 years left. The house is worth about €190,000- €200 ,000, with negative equity of €100 ,000-plus.

I want to buy a new house. I have about €30,000 in savings and will be getting inheritance of €56,000. I have a permanent job in the Civil Service, earning just over €30,000 per annum. My son is 11.

The major banks have told me if I am out of the mortgage with my brother I could get a mortgage between €100,000 and €123,000. I hope to buy a three-bed semi for €180 ,000-€200,000.

The problem is exiting the existing mortgage. My brother and his girlfriend (who pays rent) want to stay in the house. My brother earns about €45,000 a year, but is in debt of about €35,000.

The bank says he can take over the mortgage in his name only, if he gives the bank €50,000; he and his girlfriend could take over the joint mortgage and keep the same terms and conditions, but understandably she is unwilling to do so, because of the negative equi ty. We do not want to sell, as the negative equity will cripple us .

My mother was willing to take over my part of the mortgage, to release me, but was told that she would need to reside in the property .

We have run out of options at this poi nt. We want to keep the tracker rate, if at all possible. We need a way out as the living circumstances just aren’t working. I hope you’ll be able to advise .

A You are in a difficult though far from unique predicament.

Firstly, you and your brother are fortunate to have a tracker mortgage and you should avoid reverting to a variable rate if at all possible as your monthly payments will increase dramatically. I cannot see any realistic way that you can extricate yourself from the mortgage and its associated negative equity unless your brother finds the €50,000 the bank have requested or convinces his girlfriend to take over your share.

Either option is a pretty big favour to ask. Perhaps, your best option would be to consider if your existing €30,000 plus some of the anticipated inheritance would be best spent by giving the €50,000 to the bank so that your brother can take over the entire liability.

“Giving” him, or at least, the bank, €50,000 could be your way of paying off your share of the negative equity which you estimate to be over €100,000. You would then be free to move out and either rent or try to purchase elsewhere. Your brother remains with the house and carries the burden of his half of the negative equity.

My advice would be to speak with your brother and also your solicitor and mortgage broker/accountant to come to a mutually agreeable solution for all parties.

Simon Stokes is chairman of the residential property professional group of the SCSI

Q My parents bought a holiday home in Kerry about five years ago but haven’t been able to travel to Ireland (they live in the UK) for the past two years due to ill health. I would like to rent it out to other holiday makers this summer on their behalf. Could you give me any advice as to how to go about it?

A Summer short-term lettings can be very lucrative but it will really depend on the location of the property in Kerry. If the property is in a coastal area or near other attractions and amenities you would expect there to be a strong demand . If this isn’t the case, it could be more challenging to let .

A key aspect in considering a summer letting is to engage the services of a person, local to where the property is situated, tasked with facilitating move ins and outs of tenants, arranging the cleaning and changing of linen and ensuring that the property is kept to a high standard for guests. It is also important that this individual be available to handle any queries/ maintenance issues that may arise during the occupiers stay.

The next important step is to advertise the property on websites which attract holidaymakers looking for properties to rent. There are many self-catering websites , eg Dream Ireland, Self-Catering Ireland, Discover Ireland, MyHome.ie etc. These website companies will list and market your parents’ property, organise bookings and discharge income received less their commission. Alternatively, you can advertise the property yourself in the classified section of the national daily newspapers.

The key to smooth operations is to ensure that the caretaker/manager is locally based. Otherwise you should consider longer-term letting and engage a chartered property manager to source, vet and manage the property. Very often the annual rent for a long-term letting can be greater than the income received from short-term letting when you deduct outlays.

Ger Carmody is an auctioneer and chartered surveyor based in Kerry

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