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;

• 95% of build cost and professional fees for fixed price contracts and
• 85% of build cost and professional fees for self builds by direct labour

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;

• 90% of site cost, build cost and professional fees for fixed price contracts and
• 80% of site cost, build cost and professional fees for self builds by direct labour

Self Builds under Contract

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

• Fixed price contract.
• Comply with the requirements of the Building Control Acts 1990-2014: appropriately designed, inspected, constructed, supervised and certified.
• Opt into the Building Control Management System (BCMS)
• Comply with Health and Safety Legislation
• Appropriate insurance.
• Construction is covered by latent defect insurance policies and underwritten by Insurance Companies. Builders', manufacturers' or engineers' certifications are not equivalent to latent defect insurance and cannot be used as a substitute.

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: 

• Comply with the requirements of the Building Control Acts 1990-2014; appropriately designed, inspected, constructed, supervised and certified. 
• Opt into the Building Control Management System (BCMS) 
• Comply with Health and Safety Legislation 
• Construction is covered and underwritten by Insurance Companies.  
• A Certificate of Self-Build insurance cover incorporating Public Liability, Employers Liability and Property cover must be arranged by the Borrower and the interest of the Lender noted on the insurance policy.  
• The construction must be supervised by a qualified Architect/ Engineer/ Chartered Building Surveyor who must, on completion, give a certificate of compliance with Planning Permission and the Building Regulations and also certify the following: 

          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.  

• The Borrower must produce a certificate from their Architect or Engineer confirming that they supervised the opening of the foundations and the build of the Security Property, and you must produce a copy of the Architect’s/Engineer’s professional indemnity insurance.  
• 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. 

Site

The applicant(s) solicitor must confirm the following:

• The applicant(s) have full unencumbered title, and that no liens/charges exist.
• There are no easements, wayleaves or rights of way in favour of or over the subject property.
• The site must have direct access to the public road over land in the applicant's ownership or a registered right of way.
• Where the property is not on mains, all services must be contained within the site boundaries.
• The lending manager should factor in potential Capital Acquisition Tax liabilities where the land was gifted.

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:

• be completed in full, with no unanswered questions.
• be signed and dated with the Valuer firm's stamp imprinted thereon. No amended valuation amounts, either by overwriting or by the use of correction fluid, will be accepted.
• not contain significant disclaimers or concerns about the condition/saleability of the security property.

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;

• Designs must be certified by a registered construction professional. Certified designs and compliance documentation must be submitted to the local building control authority before works commence.
• Owners must appoint a "competent" builder to undertake and certify construction works ¹
• Owners must appoint an “assigned certifier” to:
  • Prepare an inspection plan for the building works, and
  • Carry out, or oversee, inspections in accordance with the inspection plan
• The builder and the assigned certifier sign a statutory Certificate of Compliance on Completion. It must be accompanied by plans and documentation to show how the constructed building complies with the building regulations and also the inspection plan, as implemented.

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:

• A Certificate of Inspection completed by the construction supervisor confirming the following:
  • The site on which the construction is to occur has full planning permission.
  • The date on which the planning permission expires.
• In accordance with the Building Control Regulations:
  • Design Certificate signed by a registered construction professional confirming compliance of the design with the building regulations
  • Notice of assignment of Assigned Certifier & Undertaking by Assigned Certifier
  • Preliminary Inspection Plan prepared by the Assigned Certifier
  • Notice of Assignment of Builder & Undertaking by Builder in accordance with the Building Control Regulations.
  • Full detailed architects/engineers plans and specification
  • Certified site layout map showing site dimensions.
  • Certified copy of grant of planning permission.
  • Valuation Report detailing site value, cost of works and post construction market value of completed property.
  • Bill of Quantities prepared by quantity Surveyor showing full costings of proposed works.
  • Building programme giving time scale of works from commencement to completion.
  • A copy of the certificate of Professional Indemnity insurance for the construction supervisor.
  • Certificate of Self Build insurance cover incorporating Public Liability, Employers Liability and Property cover.
• On completion of the property the construction supervisor must provide in accordance with the Building Control Regulations, a Completion Certificate signed by the builder (part A) and by the registered construction professional (part B) and accompanied by up-to-date schedule of compliance documents and the inspection plan as implemented:
  • A Building Energy Rating (BER) certificate.

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.