Hello everyone,
We have applied to the local authorities for a special permit to build a house on my parents’ property in a second row position. We received this special permit yesterday.
I would like to ask what the next steps should be. Basically, I now want to approach architects or general contractors (GCs) to get quotes. However, the new plot has not yet been surveyed in detail, and the companies would not have an accurate plan of the on-site situation.
Should I have the plot surveyed beforehand, or is this something an architect or GC would handle?
Would it also make sense to have a soil investigation carried out at the same time, or is it better to do that later? We want to build very close to a river, and the ground is generally known to be quite marshy. Our new neighbor, who built directly next to the river, constantly struggles with groundwater issues. However, their foundation is significantly deeper than ours will be. I’m a bit concerned that the soil might be too soft, which could lead to high additional costs. I would like to be as well prepared as possible before starting construction.
Are there any other tips on what I should do after receiving the special permit?
Thanks in advance!
Best regards,
Markus
We have applied to the local authorities for a special permit to build a house on my parents’ property in a second row position. We received this special permit yesterday.
I would like to ask what the next steps should be. Basically, I now want to approach architects or general contractors (GCs) to get quotes. However, the new plot has not yet been surveyed in detail, and the companies would not have an accurate plan of the on-site situation.
Should I have the plot surveyed beforehand, or is this something an architect or GC would handle?
Would it also make sense to have a soil investigation carried out at the same time, or is it better to do that later? We want to build very close to a river, and the ground is generally known to be quite marshy. Our new neighbor, who built directly next to the river, constantly struggles with groundwater issues. However, their foundation is significantly deeper than ours will be. I’m a bit concerned that the soil might be too soft, which could lead to high additional costs. I would like to be as well prepared as possible before starting construction.
Are there any other tips on what I should do after receiving the special permit?
Thanks in advance!
Best regards,
Markus
T
Timmi160816 Apr 2014 12:38Hello everyone,
First of all, thank you very much for the many suggestions and tips!
We submitted a preliminary building request, which was informally approved by the building authority yesterday. To have a legal basis, we will still receive a more detailed written confirmation.
The city has also provided us with an excerpt from the site plan (in which we had to outline our building project). Is this plan sufficient for obtaining quotes, or is something more detailed needed? The plan does not include measurements, only the scale.
I am not worried about the height of the house. As a guideline, there is my parents’ house, which was built with 2.5 floors. We definitely cannot afford that. The houses in the neighborhood were also built this way. However, we want to build only 1.5 floors.
Access to the house can only be regulated through the registration of an easement. The neighbors have rejected a separate driveway, and we were only granted approval if we use the existing footpaths.
The “neighbor” is building two houses away, and due to the sloping site, his situation is significantly worse than ours. He is building at the lowest possible point, while we are situated considerably higher.
The main concern with the entire project is actually the additional costs arising from the special situation. To make matters worse, the house's exterior wall would end directly at the top edge of a wall that drops one meter (3 feet). Therefore, we will probably have to dig a deeper foundation anyway. Our financial situation is not great; the bank offered us a loan of over 270,000 euros (about 290,000 US dollars). However, at that time, the land was not yet counted as equity, so I hope this gives us a bit more flexibility. The plot will likely be very small, only the house plus the minimal setback distances. Therefore, I am concerned that this might not work financially; I would exclude a basement from the start.
First of all, thank you very much for the many suggestions and tips!
We submitted a preliminary building request, which was informally approved by the building authority yesterday. To have a legal basis, we will still receive a more detailed written confirmation.
The city has also provided us with an excerpt from the site plan (in which we had to outline our building project). Is this plan sufficient for obtaining quotes, or is something more detailed needed? The plan does not include measurements, only the scale.
I am not worried about the height of the house. As a guideline, there is my parents’ house, which was built with 2.5 floors. We definitely cannot afford that. The houses in the neighborhood were also built this way. However, we want to build only 1.5 floors.
Access to the house can only be regulated through the registration of an easement. The neighbors have rejected a separate driveway, and we were only granted approval if we use the existing footpaths.
The “neighbor” is building two houses away, and due to the sloping site, his situation is significantly worse than ours. He is building at the lowest possible point, while we are situated considerably higher.
The main concern with the entire project is actually the additional costs arising from the special situation. To make matters worse, the house's exterior wall would end directly at the top edge of a wall that drops one meter (3 feet). Therefore, we will probably have to dig a deeper foundation anyway. Our financial situation is not great; the bank offered us a loan of over 270,000 euros (about 290,000 US dollars). However, at that time, the land was not yet counted as equity, so I hope this gives us a bit more flexibility. The plot will likely be very small, only the house plus the minimal setback distances. Therefore, I am concerned that this might not work financially; I would exclude a basement from the start.
If the bank specifies a financing limit, adding a plot of land (especially a very small one) doesn’t significantly change that. At best, it might lower the interest rate. Falling interest rates need to be offset by higher repayments—not by increasing the loan amount. (My personal perspective)
The limit is therefore based on the portion of income that can be repaid to the bank. And that doesn’t increase just because you own a plot of land.
What about your equity?
The bank considers this (ultimately including the house) as collateral.
Think about how secure the bank considers its money in case the house needs to be sold. A house on a small plot of land and located in a secondary position.
As a bank, I would likely set strict limits quite early on.
If the income situation doesn’t look good either, both factors together create a weak position for obtaining a large loan.
The limit is therefore based on the portion of income that can be repaid to the bank. And that doesn’t increase just because you own a plot of land.
What about your equity?
The bank considers this (ultimately including the house) as collateral.
Think about how secure the bank considers its money in case the house needs to be sold. A house on a small plot of land and located in a secondary position.
As a bank, I would likely set strict limits quite early on.
If the income situation doesn’t look good either, both factors together create a weak position for obtaining a large loan.
T
Timmi160816 Apr 2014 17:09My bank advisor said that the plot of land counts as "land equity" and would be fully considered as own capital. Since we already own the land, he was more willing to finance our project, although he did not provide exact numbers.
Regarding the plot, we still have the option to transfer a 6 are (600 square meters / 0.15 acres) garden plot below the mentioned wall into our name. However, we actually wanted to avoid this, as I don’t want to profit from my parents. Therefore, we only wanted to transfer the minimum necessary.
Our own capital in the bank currently amounts to nearly 35,000 euros. Our income is stable for now; we have 3,300 euros (about 3,300 US dollars) available per month, including child benefits for two children. The income is currently earned exclusively by me, but my wife plans to return to work in about two years, once both children are in daycare.
Regarding the plot, we still have the option to transfer a 6 are (600 square meters / 0.15 acres) garden plot below the mentioned wall into our name. However, we actually wanted to avoid this, as I don’t want to profit from my parents. Therefore, we only wanted to transfer the minimum necessary.
Our own capital in the bank currently amounts to nearly 35,000 euros. Our income is stable for now; we have 3,300 euros (about 3,300 US dollars) available per month, including child benefits for two children. The income is currently earned exclusively by me, but my wife plans to return to work in about two years, once both children are in daycare.