Wills and their Effect on Loved Ones: Making your Will with your family in mind

Wills and their Effect on Loved Ones: Making your Will with your family in mind

by | Sep 19, 2022 | Making a Will

For many, the process of making a Will can seem like a daunting task, something that people may end up putting off for years. This is understandable as dealing with a Will is tantamount to recognising that you may not always be around to provide for your loved ones. This is a difficult but important conversation that you should have with yourself and, more crucially, your family. It is never too early to begin this conversation and set about getting your affairs in order so that your family are well looked after in your absence. It is vital to open this discussion up to your family so that you may gauge their expectations and needs for the future.

This is where the assistance of a legal professional is vital. They will be able to provide you with the relevant information and advice specific to your situation so that you can make informed decisions regarding your Will. It is important to remember that a Will does not have to be set in stone, it can be changed and adapted throughout your life as your circumstances change and shift with the times.

Beginning the conversation is the most difficult step but, once the process is in motion, it will soon become apparent that you cannot put a price on the peace of mind granted by having a solid plan in place. In this blog post, we’ll guide you through the process of making a Will and what to keep in mind when crafting a Will to suit your family’s needs.

Benefits of a Will

Recent research has shown that only 30% of people in Ireland have made a Will.  Consequently, a very large number of people pass away without any Will in place. This can cause all sorts of legal difficulties for loved ones who are left behind. When somebody dies without a Will, they are said to have died intestate. As a result, the laws of intestacy determine how the deceased person’s estate is divided and can often lead to assets being distributed in a way that the deceased person would not have wanted. In Ireland the laws of intestacy are dictated by the Succession Act of 1965. Under this act, if a person dies without having made a Will, their estate shall be distributed in the following way:

– If the deceased was married or in a civil partnership at the time of their death, their spouse or civil partner will inherit the entire estate.

– If the deceased was not married or in a civil partnership but had children, their children will inherit the estate in equal shares.

– If the deceased had no spouse, civil partner or children, their parents would inherit the estate.

– If the deceased had no surviving close relatives, their brothers and sisters (or their descendants) will inherit the estate.

– If the deceased had no surviving close relatives, other relatives would inherit the estate.

– If the deceased had no close or distant relatives, their estate would go to the State.

Your vision for your family’s future may not align with the lines of distribution laid out by the Succession Act. It is clear from these laws around intestacy that having a Will in place gives you a much greater say in how your assets will be distributed when you die.

Probate

Upon your passing, your estate must enter a process known as “probate”. This is a legal process, handled by The Probate Office, that must be carried out before your assets can be handed over to your loved ones. Your estate must enter probate regardless of whether or not you have a Will in place, however, the probate process is made far more complicated and time-consuming where no Will was ever made.

When there is a Will in place, an application for a grant of probate must be made to ratify the Will and have the wishes of a Will carried out. In this instance, the executor of the Will will be entrusted with the responsibility of distributing the deceased’s estate in line with the wishes laid out in the Will. When a deceased person has passed away without a Will, an application for a grant of administration must be made. An “administrator” (generally a next of kin of the deceased), is put forward and becomes responsible for administering the distribution of the estate in accordance with the laws of intestacy.

In an intestacy situation the probate process can be more complex and time-consuming for your loved-ones. For example, a bond will be required for a sum equal to twice the gross assets of the estate. In a Will situation this is not required which, again, underscores the importance of having a Will in place.

Seeking out appropriate legal advice from an experienced solicitor when wishing to settle your affairs is crucial. Your solicitor will work with you to compile all the necessary information and documentation to help the whole process run as smoothly as possible.

Your Children and Your Will

Perhaps the most vital thing to consider when making a Will is how your children will be affected. If you die without a Will, your children may be left in the care of somebody you would not have chosen. This could be a grandparent, an aunt or uncle, or in extreme circumstances, the State.

When you write a Will, you can appoint legal guardians for your children. These are the people who will take care of your children if something happens to you and their other parent. You can also use your Will to leave money or property to your children. This can be done directly or through trusts. If you have young children, it is especially important to have a Will in place so that provision can be made for their maintenance and educational needs up to 18 years of age and thereafter. Any part of an estate that is to be left to a child as inheritance can not be claimed by that child until they reach the age of 18 – Succession Act, 1965. However, many parents opt in their Will to stipulate that their child or children should not benefit from inheritance until they are older – perhaps 23 or 25 years old. 

Defining Your Family

Nowadays, the word ‘family’ is flexible and can hold a different meaning for a lot of people. You might have a traditional family set up with a spouse and children. Or you might be in a same-sex relationship or be in a civil partnership. You might also be single or divorced. You might have stepchildren, foster children, or children from previous relationships.

No matter what your family looks like, it is important to consider them when making your Will. This includes not just your immediate family but also any extended family members who you wish to include in your Will.

Keeping your family and loved ones in mind should be at the heart of every major life decision, especially when it comes to making your Will. Making a Will gives you the opportunity to ensure everybody who is important to you is considered and acknowledged upon your passing.

 

Here at Kevin O’Higgins Solicitors, we have decades of experience in succession and probate law and would be happy to work with you to create the perfect Will to suit your circumstances. If you would like to begin the process of writing a Will or have any further questions please contact us today. We’re more than happy to help.

Selling a house in Ireland: What you need to know

Selling a house in Ireland: What you need to know

by | Jul 26, 2022 | Property

If you’re looking to sell your house in Ireland, there are a few things you need to know. The process of selling a house in Ireland can be tricky, so it’s important that you understand what’s involved before diving in head first. Unfortunately, the process isn’t quite as simple as putting a “For Sale” sign up and waiting for the offers to pour in. There are many things that must first be considered, from setting the right price to finding the right buyer. In this blog post, we will outline the steps involved in selling a house in Ireland and give you some tips on how to make the process as smooth as possible. We will also provide some tips on how to find the right professionals to aid in the transaction, as well as share some information on buying and selling a house at the same time, so that you have a fuller understanding of the Irish real estate market!

Selling a house in Ireland

Auction vs Private Treaty Sale

There are two ways to sell a house – by private treaty or by auction. A sale by private treaty is the type of property sale most of us would be familiar with. This is where the seller puts their house on the market and, usually via an auctioneer or estate agent, invites offers for the property. Sales by auction are where a vendor will list their house for sale in a specific auction. The vendor will set a reserve price for the property – the minimum amount they would be willing to accept for the property. From here, buyers at the auction will be able to openly bid on the property, with the house being sold to the individual with the highest offer. In contrast to a private treaty sale, buyers at an auction are expected to sign contracts of purchase then and there on the day of the auction.

A professional auctioneer or other expert in the area can advise you on how to sell your particular house. The best method depends on a number of factors including the type of house, the state of the property market, and the area, so it is best to consult an expert in the area for the best option for you. It is essential that you notify your solicitor of your plans to sell the house so that he can prepare the title documents and the contract.

Finding a Solicitor

One of the first and most important steps in selling your property is finding the right solicitor to aid you in the transaction. There are a few things to look for when choosing a solicitor, such as:

– A solicitor who has experience in selling houses
– A solicitor who is based in the area where you’re selling your house
– A solicitor who has long-standing relationships with other solicitors and professionals in the area who are likely to also be involved in the transaction.

When it comes to selling your home, your solicitor will be responsible for a number of tasks, such as:

– Drafting and negotiating the contract for sale
– Being responsible for your title deeds. If you have a mortgage, this will mean requesting your title deeds from your lender 
– Organising the transfer of ownership
– Calculating and paying the stamp duty on your behalf
– Submitting the Capital Gains Tax return on your behalf (if applicable)

Selling a house in Ireland is a big decision and, as such, there are a lot of things to consider before taking the plunge. With the help of a solicitor, you can be sure that all of the necessary steps are taken care of and that the process runs smoothly. Read our previous blog, Finding the Right Property Solicitor for Your Situation, to find out more about how to choose the right solicitor for you.

Contract for Sale

As soon as the solicitor has received all the necessary documentation from you and the lender, the contract for sale will be drafted. The solicitor leaves the purchaser and purchase price blank when preparing contracts for an auction sale until after the auction is over and the buyer is known. Prior to the auction, prospective bidders will want to review the title documents. If the sale is by private treaty the contract will contain all names including the purchase price. For private treaty sales, the contract for sale is not drawn up until after an offer has been accepted.

Setting the Right Price

A crucial step in selling a house in Ireland is to set the right price. For a private treaty sale, this is the asking price – a price set by the vendor as an indicator of what they expect to receive for the purchase. In an auction, this is the reserve price.

Pricing your home too high will result in it sitting on the market for a long time without any offers, while pricing it too low will mean that you’ll lose money on the sale. It’s important to find a happy medium, and the best way to do this is to consult with a local real estate agent. They will have a good understanding of the local market and can help you to set a competitive price for your home.

Hiring a Real-Estate Agent

While you can opt to sell your house privately, the vast majority of sales are done with the help of a real estate agent. An experienced real estate agent will be able to take care of many of the more time-consuming aspects of selling your home. They will value your property, photograph your home to ensure it’s looking its best, advertise and market your house for you and take care of any viewings. They will also coordinate the completion of the sale with your solicitor to ensure there are no legal loose ends.

One important thing to note before working with an estate agent is to ensure that they are registered with the Property Services Regulatory Authority (PSRA). All estate agents in Ireland must be registered with the PRSA. You can check this by searching their name on the PSRA website.

The final step in selling a house in Ireland is to complete the sale. This involves signing a contract with the buyer and transferring ownership of the property. Once the sale is complete, you’ll be able to collect your money and move on to your next home!

Buying and selling at the same time

The juggling of both buying and selling a house can be quite challenging if you want them to happen simultaneously. If you intend on completing such a transaction, it is important to work with a solicitor who has experience in handling such matters. It is possible to sign a contract for the purchase of your new house contingent on the sale of your old house going through. It is not necessary for either of these to go through at exactly the same time as there are many things that can go wrong.

Up until recently, it was possible to obtain bridging finance from a lending institution to cover the time period between the purchase of your new house and the sale of your previous house. However, such lending options are no longer available in Ireland.

Handling a transaction of this nature can be quite complex and complicated but working with an experienced firm, such as Kevin O’Higgins Solicitors, will ensure the process is carried out as hassle-free as possible.

Taxes involved in Selling a House

If you’re selling a house in Ireland, it’s important to be aware of the various taxes and fees that you’ll need to pay. The most common of these is stamp duty, which is a tax that is payable on all property transactions. The amount of stamp duty you’ll need to pay will depend on the value of your home as per the final sale price.

If you sell a house that is not your primary residence, you must pay Capital Gains Tax (CGT) on this sale. Generally, capital gains taxes do not apply to properties that are your primary residence. The general amount for CGT is 33% the sale price, however, the amount you will have to pay to the Revenue Commissioners can vary and you should speak to your solicitor to be advised upon the exact amount owed. This amount will vary according to the value of the property.

Other costs involved in selling your home include your real estate agent’s fee and your solicitor fees.

Sale Agreed v Sold

It’s important to understand the difference between ‘Sale Agreed’ and ‘Sold’. Sale agreed means that an offer has been made on your property and accepted by you, but the sale is not yet complete. Sale agreed is not legally binding and both you as the seller and the buyer may still pull out of the sale with no legal ramifications. Until the contracts are signed and the money has exchanged hands, the deal is not yet done.

In order for a sale to be complete, a contract for sale must be drawn up by the seller’s solicitor and signed by both parties and the agreed purchase price must be paid. Once this has happened, the property is officially sold.

The contract for sale will detail a number of important things, such as:

– The names of the buyer and seller
– The address of the property being sold
– A description of the property, such as the number of bedrooms and bathrooms
– The agreed purchase price
– The date on which the sale will be completed. This is known as the ‘closing date’.
– Any special conditions that have been agreed, such as the buyer being given a certain amount of time to arrange a mortgage.

It’s important to note that, once the contract for sale has been signed,  both parties are legally bound to go ahead with the sale. If the buyer pulls out of the sale, the vendor can forfeit  the deposit paid andmay also seek additional compensation for proven losses. Similarly, if the seller decides not to sell they may face legal action for losses incurred by the purchaser.

Conclusion

Selling a house in Ireland can be a daunting task, but with the help of a professional and some knowledge of the process, it can be a relatively smooth experience. Be sure to consult with both an auctioneer and solicitor to ensure that you are getting the best possible service. And don’t forget to factor in the various taxes and fees that you’ll need to pay. With a little preparation, selling your home in Ireland can be a breeze!

Please get in touch with us at Kevin O’Higgins Solicitors if you have any questions.

Buying property in Ireland: What you need to know

Buying property in Ireland: What you need to know

by | Jul 13, 2022 | Property

Buying property in Ireland: What you need to know

Are you thinking of buying a property in Ireland? If so, wrapping your head around the process involved is integral to ensuring the transaction  goes smoothly. For many people, buying a home or a new property will be one of the biggest financial decisions of their life. By informing yourself of all the need to know information before you embark on this journey, you put yourself in a position to make the transaction as pain free as possible. In this blog post, we will discuss some of the key things you need to know when buying property in Ireland. We will cover the importance of getting a property evaluated, the difference between “sale agreed” and “sold”, the different title situations that can arise, as well as some of the legal aspects involved in purchasing property. So, whether you’re a first-time buyer or an experienced investor, read on for more information!

Buying property in Ireland

If you’re thinking of buying property in Ireland, the first thing you need to do is figure out what your budget is so you can determine – (1) how much of a deposit you can afford, and, (2 ) your ability to afford the monthly mortgage repayments. This involves budgeting for all aspects of buying and owning a property such as mortgage costs, solicitor’s fees, insurance etc.

The amount you can borrow as a mortgage loan and how much you need to put down as a deposit is regulated by Central Bank lending limits. Currently in Ireland, the minimum amount you must put down as a deposit in order to receive a mortgage is 10% of the total price of the property you are looking to purchase. It’s important to get a mortgage pre-approval before you start looking at properties so that you know exactly how much you can spend.

Another important step in the process is to employ the help of an experienced and qualified conveyancing solicitor – a solicitor who specialises in the purchase and sale of property. There are many complicated legal processes and documentation involved in the purchase of any property – some of which will be discussed later – which can be very hard to navigate and understand without the aid of a professional. Working with a solicitor you trust will ensure the transaction is road mapped and carried out in as smoothly a manner as possible.

Surveying the property

The next step is to find a property that you like and that meets your needs and budget. Once you have found a property, it is important to get it evaluated by a professional before proceeding any further. While there are certain things that a seller must inform you on before a sale can be closed, there is no onus on the seller, their auctioneer or their solicitor to inform you of every aspect and detail of the property. There can be hidden problems with the property that you may not be aware of and an evaluation will help to identify any of these potential pitfalls.

Additionally, if you are still at the price negotiation stage, getting a property evaluated can give you an idea of what the property is actually worth. Going into any negotiation as informed as possible is always key to getting the best bang for your buck.

Any potential problems with the property, such as structural issues, title issues or dampness may be discovered. Once you have the evaluation, you can start negotiations with the seller, taking the findings of the survey into account when submitting your offer. You may also choose not to make an offer at this point.

Sale Agreed vs. Legal Sale

When you make an offer on a property and your offer is accepted, this is called a ‘sale agreed’ and is not legally binding. There is an agreement in principle to go through with the sale but either party can still back out at this point. To make it legal, you need to get to contract signing. When this is achieved both the buyer and the seller are legally bound to go through with the sale when they agree on the sale price of the property and both parties have signed the contract. The contract for sale will have been signed at this point with a deposit paid by the buyer. You can instruct your solicitor to start the legal process. The solicitor will investigate the title, planning , property taxes, local authority issues  and other documents to make sure that everything is in order before proceeding with the sale. If you are borrowing your solicitor will be checking in with your lender and dealing with their requirements.  They will also liaise with the seller’s solicitor to ensure that everything is going smoothly and all timelines are met. Once all the paperwork has been finalised, you will be ready to sign the contract and complete the purchase!

Title Situations

Something to be aware of when buying a home are the potential title situations that could exist regarding the property you are looking to purchase. In property law, the “title” refers to all of the property rights that belong to a proprietor of a specific property. Before purchasing a property, it is incredibly important to understand who actually owns the property and whether there are any outstanding debts or other rights on it.

This is another reason why it is so important to work with a solicitor when purchasing property. Your solicitor can complete checks regarding the title of your deserved property and advise you on anything of note. The language used in titles and deeds can often be very complicated and even archaic. Having an experienced solicitor who can explain these situations in layman’s terms can be invaluable.

If you’re buying a property with a mortgage, your lender will also do a search to make sure there are no problems with the title. There are two main types of title for properties in Ireland – freehold and leasehold. Freehold means that you own the property outright and are responsible for the upkeep and maintenance of the property. Leasehold means that you have a long-term lease on the property, typically for a period of 99 years, and are responsible for the upkeep of the property during that time. Additionally, generally speaking, with freehold possession you are said to own the building and land upon which the property is built, whereas with leasehold, you are only said to own the building. The type of title will be one of the factors you need to consider when purchasing a property.

Planning Permission

When purchasing a home, it is incredibly important to ensure that there are no planning issues with the property. The best way to do this is by working with an experienced conveyancing solicitor who knows what to look for.

There are many things that solicitors would refer to as planning issues. Examples would be things like homes being built with additional buildings such as garages that never received planning permission, extension being built on a property that never received planning permission, velux windows being installed in the front of a house that never received planning permission, attic conversions that are being used habitually with no planning permission received.

If issues such as these go undiscovered prior to purchase, they can become incredibly costly and can lead to unwanted stress, hassle and even litigation. Once you become the owner of a property, all pre-existing planning issues become your liability and your responsibility to rectify. If it is subsequently discovered that planning permission was required for a specific build on a property but was not requested or granted, the planning authority may require the works to be reversed at the expense of the current owner.

Contract for sale

Once you have a contract for sale, there are several important things to do before completion such as getting buildings insurance, arranging your mortgage finance if you haven’t already done so and booking a surveyor to assess the value of the property. You will also need to provide proof of identity and address to your solicitor as well as any other required documentation. Completion usually takes place four to six weeks after signing the contract for sale. Once everything has been finalised, you will be ready to move into your new home!

Bridging Funds

If you are planning to sell your home to buy another one, you can no longer take out what was known as a ‘bridging loan’ which was a sum of money used to cover the gap between two transactions on a short-term basis. You must have the funds readily available to purchase a new property. This may mean that you must sell your home first and then rent for a period until you have the necessary funds to buy another property. Dealing with the simultaneous sale and purchase of properties at the same time can be very stressful. Working with a solicitor with years of experience in these transactions, such as Kevin O’Higgins Solicitors, can make a difficult and complex transaction much easier.

Conclusion

There are many things to bear in mind when buying property in Ireland but, if you do your research and ensure you are well informed, it can be a relatively smooth process. Seeking advice and working with experienced legal professionals, such as Kevin O’Higgins Solicitors, will be paramount to ensuring a successful transaction.

We hope you found this blog post informative. If you have any questions or would like to know more about buying property in Ireland, please get in touch now via our contact page.

Thank you for reading!

Finding the Right Solicitor to Make Your Will

Finding the Right Solicitor to Make Your Will

by | Jun 23, 2022 | Making a Will

Finding the Right Solicitor to Make Your Will.

Making a will can be a complex legal process. There are many varying steps that require a level of detail that may lead to complications or misunderstandings. Therefore, finding the correct solicitor to develop your will can be a crucial choice – ensuring that your loved ones stay out of court, avoid dispute, and so on. Making a will is not required by law in Ireland, but it is an important step in ensuring that your estate is divided amongst your loved ones as you wish. In this blog, we will take a deep dive into the will-making process in Ireland and how matching the right solicitor with the right circumstances can prevent future headaches further down the road.

 

Before we begin this blog, it is important to have an understanding of some legal definitions when it comes to will-making/probate law, as they will crop up throughout.

Estate – Simply, the possessions that you own and/or intend to divide among your chosen beneficiaries.

Beneficiaries – The recipients of your estate. 

Testator – The person who writes the will i.e the person with the capacity to make the will.

Intestate – If you pass away without leaving a will, you are said to have died ”intestate”.

Witness – The people or persons chosen to oversee the signing of the will and guarantee its validity.

Executor – The person entrusted to carry out the wishes of the will maker upon his or her passing.

 

When it comes to making a will in Ireland, there are many things to consider. There are also a certain number of legal requirements that must be met. You must be over the age of 18 and of sound mind to make a will. The will must also be officially laid out in writing, with your confirmed signature and the signature of two witnesses, present at the will’s completion.

Before we begin this blog, it is important to have an understanding of some legal definitions when it comes to will-making/probate law, as they will crop up throughout.

Factors to consider when deciding to make a Will

If you die without having made a will, you are said to have died intestate and your estate will be distributed according to the rules of intestacy. This may not be in line with your wishes and can cause disharmony and disputes among your loved ones.

One very important thing to consider when drafting a will is who you would like to appoint as Executor/s of your will. The Executor is the person who will be responsible for administering your estate in accordance with the terms of your will. This can be a daunting task and you should consider appointing someone you trust implicitly to carry out your final wishes.

You must also be aware of the potential for inheritance tax in Ireland – known as Gift and Inheritance Tax (Capital Acquisition Tax). This is a tax that is payable on the value of your estate above a certain threshold. The rate of inheritance tax is currently 33% but there are some reliefs and exemptions which can reduce this liability. Your will can be drafted with the impact of inheritance tax in mind. This is why it is incredibly important to employ the expertise of a solicitor when drafting your will. A good probate solicitor will be able to navigate the legal requirements to pay inheritance tax to ensure all relevant taxes are paid, while also ensuring your loved ones receive the appropriate amount of your estate.

Another thing to note, your assets are not the only thing to be considered when you are drafting your will. If you are someone with young children or dependents, another very important consideration when making your will is guardianship – who will care for your children if the unthinkable happens. You can appoint a guardian in your will to ensure that your children are cared for in the event of your passing.

What Should be the Contents of My Will?

A defined format for a will does not exist. According to Irish Probate Law, the will does not have to follow any particular order, but it must include the name and address of the testator, a revocation of any previous will that may have been produced, a named and appointed ”executor” along with their address. It is also advisable to list any assets and debts that the will maker has at the time of writing the will. This can be extremely helpful for the Executor as it gives them a starting point when it comes to distributing the estate.

Once these basic requirements have been met, you are free to include anything else in your will that you see fit. It is important to note that any Will made in Ireland must be signed by the testator and two independent witnesses in the presence of each other. The will must also be dated.

Ensuring that your will is drafted with the aid of a solicitor is imperative to avoid the creation of “DIY wills”, something which the courts in Ireland have had to contend with. The main reason for the existence of DIY wills is that people often try to avoid the perceived hassle and expense of employing a probate solicitor. However, the time, energy and cost of dealing with probate disputes and litigation off the back of an improperly prepared will, will almost certainly outweigh any initial expense.

Changing your Will in the Event of a Change of Circumstances

Once a will has been written, it does not mean it has to be set in stone.  If there are any developments in your personal circumstances, it is important to review your will and make any necessary changes.

If you wish to implement these changes, the testator can add a separate document, referred to as a codicil.  A Codicil is simply an amendment to an existing will and must be signed and witnessed in the same way as the original will. It is advisable to have your will reviewed by a solicitor every few years, or sooner if there are any major changes in your life such as marriage, divorce, birth of children etc.

However, if the circumstances have changed drastically, it might be more efficient to revoke the will entirely. To do this, you must destroy, burn or tear the will and all copies of it. From here, you should work with your solicitor to draft a new will to reflect your new wishes and change in circumstances.

The Role of the Solicitor in Making a Will

While it is possible to write your own will, it is highly advisable for one to employ the services of a highly qualified probate solicitor to write it for you, such as what we have on offer here at Kevin O’Higgins Solicitors. The role of the solicitor in this process can be dictated by you. You may wish for the solicitor to simply draft the will in accordance with your wishes or you may want the solicitor to take a more active role and advise you on tax planning, asset protection, the creation of a trust or other matters relating to your estate.

It is also worth noting that only a solicitor can certify a will for safekeeping by the Probate Office. This is important as, if you were to die without a will or with an invalid will, your estate would be distributed in accordance with the rules of intestacy which may not be in line with your wishes.

There is no set cost in the will-writing process, as the amount you pay will be dictated by the role you want your solicitor to take and the complexity of your estate.

At Kevin O’Higgins solicitors, we understand that each person’s circumstances are unique and we tailor our service to suit your individual needs.

Matching my Circumstances with the Right Solicitor

When looking for a solicitor to assist in the will-making process, it is important that you find somebody who you are comfortable with and who you feel confident will act in your best interests. You should also ensure that the solicitor has the relevant expertise and experience in Irish will-writing and Probate Law.

Once you have found a solicitor that you feel meets these criteria, it is important to discuss your individual circumstances with them and ensure that they understand your wishes. This will allow them to provide you, confidentially, with the best possible service and advise you on the most efficient way to distribute your estate.

 

Conclusion

At Kevin O’Higgins Solicitors, we pride ourselves on providing a personal and professional service to each of our clients. We take the time to get to know you and your circumstances so that we can provide you with the best possible advice.

If you would like more information on will-writing or any other probate law matters, please do not hesitate to contact Kevin O’Higgins Solicitors today.

Buying checklist: Things to know before buying your home

Buying checklist: Things to know before buying your home

by | Jun 13, 2022 | Property

So, you’re thinking of buying a house? Well congratulations! This is an important decision and one that should not be taken lightly. When it comes to buying a house in Ireland, there are many things you need to take into account. From the legal aspects of the purchase to the financial implications, there is a lot to think about. To help you out, we’ve put together a buying checklist of things to know before buying your home. While every sale and purchase are different, by educating yourself on the steps that can be expected, you can minimise the possibility of any unwanted surprises.  This way, you can be sure that you’re as prepared as possible for this big purchase.

In this blog post, we will give you a comprehensive guide to buying property in Ireland. We will discuss everything from solicitors’ roles in property purchases to how best to go about organising your funding. So whether you’re just starting your house-hunting journey or are about to sign on the dotted line, make sure to read this blog post!

Organising Your Finances

Organising your finances in advance of any purchase is one of the most important aspects of buying a house. Be it assessing what you can actually afford, saving for a deposit, or getting mortgage approval, having your finances in order before you even start looking is crucial.

The best thing you can do when you start considering purchasing a home is assess how much you can afford and what your budget is.  This will help you immensely when it comes to searching for a property, as you’ll know exactly what your price range is. Two important factors to consider when assessing your budget is realistically analysing how much of a deposit you will be able to save. This is important as, in Ireland, the minimum deposit is 10% the price of the overall purchase price of the property. The second important factor to consider is your debt-to-income ratio (DBI ratio). This is the percentage of your pre-tax income that goes towards paying debts, and banks will use this to calculate how much they’re willing to lend you.

Once you have a realistic idea of what you can afford and what your budget looks like, it’s time to start saving for that deposit! Depending on the price of the property, this could take some time. A great way to jump start the process is by opening a dedicated savings account for your deposit. This way, you can set up automatic transfers from your salary each month and watch that deposit grow. In Ireland, regulations have been put in place to limit the amount a bank or lender can lend you for a mortgage. These are called the Central Bank’s Mortgage Lending Regulations or LTV (loan-to-value) Limits. The maximum amount you can borrow is now set at:

  • 90% of the value of the property for first time buyers
  • 80% of the value of the property for second and subsequent buyers

So, if you’re buying a house worth €300,000, the maximum amount you could borrow would be €270,000 as a first time buyer or €240,000 as a second-time buyer. This means that you would need to have a deposit of at least €30,000 (or €60,000 if you’re a second-time buyer).

If one cannot afford a deposit to cover an LTV limit, there is another option available to them if they are first time buyers. This is the Help-to-Buy (HTB) Scheme. This scheme was introduced in 2017 and was enhanced in July of 2020. Be sure to contact Kevin O’Higgins Solicitors to find out more about the HTB Scheme and to find out if you might be eligible.

Getting Mortgage Pre-Approval

Once you have a deposit saved and know how much you can afford to borrow, it’s time to start the mortgage approval process. In Ireland, you must have your mortgage pre-approval in place before you can make an offer on a property. This is because once your offer is accepted, you only have six weeks to complete the purchase. This means that you need to have your mortgage approval in place so that you can move quickly when you find the right property.

The first step in getting pre-approval is to contact a mortgage broker or bank and arrange an appointment. At this meeting, you will need to provide documentation such as payslips, tax returns, and bank statements. The mortgage broker will then assess your financial situation and tell you how much you’re eligible to borrow. It’s important to remember that just because you’re approved for a certain amount doesn’t mean that you have to borrow the maximum amount.

Once you have your mortgage pre-approval in place, it’s time to start searching for your dream home! This can be an exciting time, but it’s important to remember to stay within your budget. It can be easy to get caught up in the excitement of finding a new home and overlook your financial limitations.

Finding the Right Solicitor for You

As with any legal process, it’s important to make sure that you have the right solicitor on your side when purchasing a property. Your solicitor will be responsible for handling all of the legal aspects of the purchase, from negotiating with the vendor’s solicitor to ensuring that all of the necessary documentation is in order.

When choosing a solicitor, it’s important to make sure that they are experienced in handling property purchases and sales. Your solicitor will also be able to inform you of any title or covenant issues regarding any properties you are looking at – eg.  if there is a right of way across the property, if there are specific covenants forbidding future development to the property, or if there are any rules or regulations concerning an apartment block or complex. Your solicitor should also complete conveyancing checks on the property to ensure there are no legal issues with the property that may cause you trouble down the line.

Read our previous blog, “Finding the Right Property Solicitor for Your Situation”, to find out what you should look for in a solicitor or, alternatively, reach out to Kevin O’Higgins Solicitors today.

Finding Your Home and Making an Offer

The next step is where the fun begins. From here you can start looking for your new home by attending viewings.  Once you’ve found a property that you’re interested in, it’s time to make an offer. In Ireland, the general process for making an offer is to formally make the offer to the estate agent handling the sale.. If the seller accepts your offer, you will be given a contract of sale. This is a legally binding document that outlines the terms of the sale. It’s important to have your contract of sale reviewed by your solicitor before you sign it.

Getting Mortgage Approval

Once you have a deposit saved and know how much you can afford to borrow, it’s time to start the mortgage approval process. In order to get approved for a mortgage, you will need to provide the lender with proof of your income, employment history, and outgoings. You will also need to undergo a credit check. This is important as it will give the lender an idea of your financial history and whether or not you’re a high-risk borrower. Your lender will also require you to obtain a Standard Surveyors Report or a Mortgage Valuation to ensure the price and standard of the property is consistent with the amount of the loan you have applied for. If you are purchasing a second-hand home, it is highly recommended that you organise a structural survey of the property to get a deep-dive into the integrity and quality of your potential new home.

The mortgage approval process can be lengthy, so it’s important to start it as early as possible. Once you have been approved for a mortgage, the lender will provide you with a Mortgage Offer Letter. This letter will outline the terms and conditions of your mortgage, as well as the interest rate and repayment schedule. It’s important to read this letter carefully and to make sure that you understand all of the terms and conditions before signing it.

Final Contracts

Once the valuation has been completed, the lender will issue a Loan Offer Letter. This letter will outline the final terms and conditions of your mortgage, as well as the interest rate and repayment schedule. Again, it’s important to read this letter carefully and to make sure that you understand all of the terms and conditions before signing it. It is even more important to have your solicitor read over it, ensure it is in order, and explain any particulars you may not understand.

The final stage of the process is known as completion. This is when the legal ownership of the property is transferred from the vendor to you. In order for completion to take place, your solicitor will need to receive the balance of the purchase price from you. They will then pay this amount to the vendor’s solicitor. Once this has been done, the keys to the property will be released to you and you will officially become the new owner!

Buying a house is a big decision and one that should not be taken lightly. There are a lot of things to consider before taking the plunge, but if you’re prepared and have done your research, then it can be a smooth and exciting process. Be sure to get advice from professionals, such as solicitors and mortgage brokers, and make sure that you understand all of the legal and financial aspects before signing any paperwork.

I hope this blog has helped to give you an idea of some of the things that you need to consider before buying a property in Ireland. If you have any questions or would like more information, please do not hesitate to get in touch today.

Happy house hunting!