Home Economics: Concerns over mortgage application
Sinead Ryan answers your property questions
My wife and I are applying for our first mortgage and the information being sought seems unbalanced. I am in a PAYE job in the education sector and the bank requested three months worth of payslips and a P60. My wife is self-employed in the fashion industry and they are looking for a year's worth of accounts, tax clearance certs and tons of information from her accountant. It is holding up the application process. What is the problem?
Banks treat PAYE workers as highly visible in terms of their income, tax and job security (with entitlement to severance pay and social welfare) and the details are easily checked in any event, says Karl Deeter of Irish Mortgage Brokers, who adds: "The financial information required, such as payslips and P60s, is often required by law.
"The self-employed are different; they work on drawings and depending on how they manage their accounts it can be difficult to segregate personal from business expenditure. There is also the common issue of a self-employed person claiming to earn one amount when perhaps the tax balancing certs say otherwise. The additional information is sought in order to help the underwriter work through this, and, as some incomes can be seasonal, viewing bank statements to cover a longer period is important."
This is part of responsible lending and your best bet is to get the information off as quickly as you can. A good accountant can be invaluable in this regard as they will know the format best understood by the bank.
I am a tenant in a block of apartments which I have just discovered is being sold off. I got a shock as I didn't realise this was the case and am worried I will now have to vacate. I can't get any information off the agents who say they are acting on instructions of a receiver and my landlord isn't answering calls. Is the rest of my lease (I have eight months to go) guaranteed under the new owner?
If a receiver has been appointed you will receive confirmation about this which will include new contract details regarding payment of rent. Susan Cosgrove of Cosgrove Gaynard solicitors adds that the appointment of a receiver doesn't automatically affect your tenancy.
"If you have been in occupation of the property for at least six months, you will have acquired the benefit of a Part 4 tenancy under the Residential Tenancies Act 2004.
In cases of fixed-term tenancies, however, the rights under Part 4 only apply to the extent that they benefit the tenant over and above the rights afforded to him/her under the terms of the fixed-term tenancy.
Under Part 4 a landlord can terminate a lease in certain circumstances which includes the sale of the property. However he/she can only terminate a fixed-term tenancy where the tenant has been in breach of his or her "obligations".
As regards the receiver, normally they can only terminate your lease in the same circumstances as your landlord. For example, he/she must give you a valid notice in accordance with the Act unless exceptional circumstances prevail, such as a lease being put in place without the bank's consent or that the rent payable was far below market value.
The Ryan Review
Orange may be the new black, but Dundalk is the new Dublin.
As are Drogheda, Celbridge, Maynooth and a host of other 'county towns' which, given the pressure on the capital's house prices, are once again seeing increased numbers of buyers being attracted to head out on the arterial routes past the M50 ring as they chase supply.
Still, with the majority still featuring cash buyers, or at least purchasers with substantial deposits, there's no danger of the banks overwhelming themselves and their owners (mainly us) with hyper extended loans any time soon.
Regional-but-quite-near-Dublin towns are seeing a definite bounce in business so is it time again to consider the commuter's lot in all this capital-centric frenzy? Compared to the Celtic Tiger boom, many towns and villages on the outskirts of adjacent counties, while technically accessible, still took an inordinate amount of time to traverse, due to the then still largely undeveloped road network. Remember when the likes of Rochfortbridge and Portlaoise were billed in marketing literature as an hour from wherever you worked in Dublin?
The reality was that commuters had to arise bleary-eyed at 6am to start the arduous journey.
Well these days such places are a darn sight nearer than that billed time – one of the few legacies of that era we can be proud of are the excellent radial arteries we took to constructing, making many of the areas in Meath, Kildare, Wicklow and Louth much easier and faster to commute from. But prices there, compared to Dublin, are still disproportionally cheap all the same, so perhaps it's a good time for city slickers to don their wellies and breathe the country air.