Brass tacks to know when building a rural home

Building a house is one of the biggest, most expensive projects that many of us will undertake in our lifetime, with the majority of people who want to live in rural Ireland on a mission to put down roots in their forever homes.

So for those starting out on the journey, what are the key points they need to know when it comes to building a house in rural regions?

Joe Fallon is a chartered architectural technologist and registered building surveyor SCSI from Bunclody, Co Wexford. He says there are three key considerations for people to take into account when looking to build a home.

“If you can’t establish local needs in the area you’ve chosen, then you will go nowhere. That is the first thing planners look at when assessing a planning application,” he explains.

“If you’re from the area or have lived there long enough to meet whatever the requirement is within your local authority, then it shouldn’t be hard to establish local need.

Due diligence

“Another huge issue is site location. In the case of land with road frontage, you must have sufficient sight lines offering maximum visibility coming on to a road from your site.

“If not, the house could be considered an infringement on road safety in the area,” he says.

“People also need to take into account the quality of the land they want to build on and whether there is sufficient drainage. If you do your due diligence ahead of submitting an application, you’ll do your chances of getting planning a world of good.

“The other thing I would recommend is getting the right people involved in your project from the beginning. An architect will project manage the whole build and can sign off at the very end, whereas a man with a van will come and do the work [if it’s an extension over a new build], but you’ll still need to get an engineer in to sign off on the plans.

“While you can be led to believe you’re saving money by not going down the architect route, it could end up costing more and delaying the project if you struggle to find someone to sign off on whatever work has been done.”

Nigel Quaid of TPW Septic Tank Solutions says septic tank and wastewater systems can make or break a planning application.

“My strongest advice for those intending to build a home in rural Ireland is to enlist the services of a really good engineer, one with local knowledge and experience of rural housing because septic tanks can be a real stumbling block for planning applications,” he says.

“Each County Development Plan will have guidelines on the lands suitable for rural development which will include suitability for percolation tests which prove that the ground has enough soakage to support a septic tank.

“The infrastructure also has to comply with the Environmental Protection Agency (EPA) Code of Practice, and there have been instances where the density of housing in an area will preclude any further development. Clare has particular problems due to the porous rock in much of the county which can make it difficult to get planning permission. Likewise in Leitrim, the geography of the county causes problems for rural house planning.

“Farmers are very familiar with the issues surrounding septic tanks and wastewater disposal systems, the design of which can be crucial in planning applications, but people need to appreciate how vital this is to their overall build because banks won’t grant a mortgage without a certified septic/wastewater system.”

Self-build mortgages

Clearing the first steps and securing planning gives the green light to most house build projects, subject to finance being in place.

Self-build mortgages are becoming more accessible, according to Margaret Barrett, managing director at Mortgage Navigators, mortgage adviser and qualified financial adviser.

“Considering that we have the most significant housing crisis of generations, one-off homes need new consideration,” she says.

“Rural areas often face unique housing challenges, including limited availability of suitable properties and a lack of affordable housing.

"Self-build projects help address these needs, providing the opportunity to create homes that meet families’ specific requirements, whether it’s multi-generational living arrangements, incorporating home offices, or ensuring accessibility for people with disabilities.

“Self-build projects by farm families complement agricultural activity by providing housing for farmers, workers and agricultural entrepreneurs. Additionally, self-build homes may incorporate features like vegetable gardens, orchards, or small-scale livestock, further contributing to food security and self-sufficiency in rural communities.”

If you do your due diligence ahead of submitting an application, you’ll do your chances of getting planning a world of good

Margaret explains the nuances around self-build mortgages which provide finance through the different stages of a house build.

“Self-build mortgages allow borrowers to fund the construction of their home, normally over an 18-month term,” she says.

“Normal Central Bank of Ireland lending rules apply and if you are a first-time buyer, you can get four times your combined income and 90% Loan-To-Value (LTV). Some banks lend 100% of the build cost, if the site is already bought or inherited, and lending is within the Estimated Future Value; that’s a simple calculation around the current value estimate, interest rate and loan period.”

Margaret also advises people to have a contingency fund in place to cover unanticipated expenses which will crop up over the course of construction.

“Self-builders should have an extra 10% of the total cost to cover unforeseen expenses. The mortgage applicants’ own funds are put into the project first, and the cost of any special conditions, attached to the planning permission, should also be included in the calculations.”

The mortgage process is roughly, as follows, and potential borrowers can expect a decision up to 10-12 weeks from initial application;

Approval in principle: Most lenders will approve an application without full planning and costings, so borrowers can review their options before committing to further expenditure.

Planning permission: Before approving a ‘Full Letter of Offer’ on a self-build mortgage, lenders typically require valid planning permission for the construction project.

Architect/engineer’s costing: Lenders often request an architect’s costing report to confirm the build cost, and, on the final stage drawdown, they will request a final report and a Certificate of Compliance to confirm the construction complies with building regulations and planning.

Stage payments: Instead of getting the full mortgage amount upfront, funds are released in stages during the construction process, so borrowers have access to building funds when needed.

Flexible repayment options: Some self-build mortgages offer interest-only repayments during the construction phase, which helps ease the financial burden while the property is being built.

Valuation: Lenders initially request a site valuation and confirmation of the estimated property value, on completion. A final valuation is required on completion of the build, to confirm the property is completed and its market value.

Other essentials

Utilities: Uisce Eireann (Irish Water) advises people to apply for a water connection as soon as planning permission is granted. The process involves nine stages from initial application through to installation. Check out water.ie.

ESB Networks: New electricity connections involve a three-step process, which begins with the submission of the site plan, along with Ordinance Survey Map and GPS co-ordinates of your site. The final stage, after payment, is certification by an electrical contractor that all works comply with regulations.

Broadband: To check the availability of broadband in your area log on to comreg.ie/broadbandchecker/ which gives a list of speeds, network status and the providers offering the service.

Eircode: To get an Eircode for your property you must contact An Post to advise them that you are building a house. Send them a screenshot of the Google Maps satellite view and draw in where your house will be located. Also send the OS Map for your site to eircode@anpost.ie.

Other costs: These include gift tax – where a site has been gifted; site survey and site valuer – where a mortgage is required; land registration fee; development levy; professional fees – architect/engineer/draughtsman/solicitor and stamp duty of 1% less VAT.