What’s the meaning of a ‘builder’s finish’?
Q I have the opportunity to buy a partially finished house for a significantly reduced price (€140,000). The couple building it have run into difficulties and are selling. It’s difficult to say what it would have gone for a couple of years ago as it is a one-off house in a rural area but my guess would be at least €250,000. The house has a “builder’s finish” – what does this mean? What should I ask the estate agent? I rent in Dublin but hope to relocate at some point to the midlands where this house is and where I am from. Will the bank loan me the full value of the house on completion or only at this unfinished stage?
A The definition of a “builder’s finish” can vary but it usually means that the house needs flooring, bathroom suites, a kitchen, fireplaces, and internal doors and architraves. So you’d need to cost all that and, as much of this depends on personal taste, you’re into a huge range of prices. We have, however, seen new builds with no roofs – just four brick walls – for sale, so if that is what is on offer you are into significantly higher costs. Also there could be other costs. For example, you can be almost certain that there is no landscaping, like a paved driveway, which may add significantly to the cost.
Don’t bother asking the agent too much, the real answers you need are from an architect or surveyor and a builder. Has the house been built to meet building regulations and its planning permission? It is well-built in terms of insulation, materials, etc? A builder should be able to give you a good idea of how much you will have to spend to finish it.
Forget what it is was worth two years ago – that is irrelevant. Lenders are so cautious about money, it’s difficult to say what they would lend until you apply. When any lender values the property, the valuation may well be below the asking price (maybe even only a little over site value) and even at that a lender will probably only offer a low loan-to-value ratio so you would need a large deposit and cash to finish the house. Have you looked at finished houses in the area to see what they are now going for? There might be very little difference between these prices and the unfinished one and it might be much easier to get a loan for a property that is already built.
Landlord insists we honour lease
Q We are students with a year long lease on an apartment from last October. We hoped to sublet from July 1st but were unable to find a tenant. We gave the landlord 35 days notice – which is what we understood was the legal requirement to get our deposit back but he says we must pay rent until October?
A He is right. The lease was a legally binding agreement committing you to monthly rent until whatever date it stipulates in September/October. The 35-day notice is to terminate a tenancy of (more than six months or less than a year) where no fixed term lease exists. If you leave now the landlord can keep your deposit and, worse case scenario, come after you legally for the remaining rent.
Your questions
Send your queries to Property questions, The Irish Times, The Irish Times Building, 24-28 Tara Street, Dublin 2 or email propertyquestions@irish-times.ie. This column is a readers’ service and is not intended to replace professional advice.
