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Self-Build Criteria

Applications for a Local Authority Home Loan for the purposes of funding a self-build property will only be considered in circumstances where the security property in question is a new construction, i.e. properties that are part-built or otherwise commenced at the time of making a Local Authority Home Loan application will not be eligible for consideration.

Full compliance with the Building Control statutory certification is a requirement of the Local Authority Home Loan, the facility to opt out of statutory certification (allowed for in Building Control (Amendment) (No. 2) Regulations 2015 (SI 365 of 2015)) is not available to borrowers.

An application for a Local Authority Home Loan to fund a self-build property will be considered in two stages, as follows:

  1. Application for funding under Local Authority Home Loan
  2. Satisfaction of Local Authority requirements for self-build property

Loan to Value (LTV) for Self Builds

Full Planning Permission Owned Site

Where an applicant(s) is building their own home on a pre-owned site with planning permission, the loan will not exceed;

Full Planning Permission on Site to Purchase

Where an applicant(s) is building their own home on a site with planning permission to be purchased, the loan will not exceed;

Self Builds under Contract

Where a self-build is to be completed under contract, it must meet the following criteria:

Self Builds by Direct Labour

Where a Local Authority decides, at its discretion, to provide loans for self-builds by direct labour, it must meet the following criteria: 

          A. That he supervised the opening and laying of the foundations and that they  are suitable for the Secured Property and the ground conditions; 

         B. That he supervised the construction of the Secured Property through all  stages;  

        C. That the Secured Property has been completed in accordance with good  building practice; and  

        D. That there is no further work outstanding.  

Site

The applicant(s) solicitor must confirm the following:

Valuation Reports for Self Builds

Under the Local Authority Home Loan, the property must have a prevailing market value, on day of completion, that does not exceed the values as specified in the Housing (Home Loans) Scheme.

A Valuation Report carried out by an approved independent or Local Authority Valuer will be provided after planning permission is approved and before a Letter of Loan Offer is issued. The Valuation Report will be based on the property being completed to the specifications outlined in the most recent planning permission granted by the Local Authority and will be provided prior to a Letter of Loan Offer being issued for a self-build.

The valuation should be completed on a Valuation Report such as the indicative template form set out in the Appendix 3.

The Valuation Report must:

Valuation/survey fees are payable by the borrower(s) to the firm of Valuers who undertake the valuation.

Compliance with Planning & Building Regulations

Certificates of compliance with planning and building regulations are required for all properties prior to drawdown, and must be provided by suitably qualified insured architects, engineers or building surveyors.

The forms of compliance shall be those approved by the Royal Institute of the Architects of Ireland (R.I.A.I.), Engineers Ireland (E.I) or the Society of Chartered Surveyors Ireland (S.C.S.I).

Self Build General Conditions - Compliance with Building Control Acts

Dwellings should be designed and constructed in accordance with the Building Regulations.

The owner must assign competent persons to design, build, inspect and certify the building works who, in turn, must account for their role through the lodgement of compliance documentation, inspection plans and statutory certificates.

In summary;

The construction supervisor must hold Professional Indemnity insurance cover of at least €1m on each and every claim basis with no aggregate cap. A copy of the certificate of Professional Indemnity must be provided prior to loan approval.

Self Build Supporting Documentation

The following documents must be provided with the loan application:

Non-standard certificates or standard certificates which have been altered by the supervising person are not acceptable.


¹ For the avoidance of doubt, the building control regulations do not prevent an owner from taking on the role of the builder for the purposes of these regulations, provided they are competent to do so.