Recently a new Grant has been made available for Derelict and vacant homes. The grant is split into two parts: The vacant property refurbishment grant (€30,000) and the top-up grant for derelict houses (€20,000). The grant totals €50,000 euros between the two elements. You must submit an independent report prepared by a certified evaluator, along with the application confirming that the property is derelict.
What is the Vacant Property Refurbishment Grant?
The grants are a new initiative in Ireland. They are being used as an incentive for first-time buyers in order to combat the rising issues surrounding housing shortages. The grants are offered on any property which is vacant or derelict.
Vacant or derelict properties Grant for first-time buyers
In one of the boldest moves to date by the government. First-time buyers can now benefit from the vacant home initiative, they can purchase a derelict or vacant home and then apply for a grant of up to 50,000 euros. The grant does not require any planning permission.
The grant only applies to houses that are vacant, the initial grant has a maximum of 30,000 euros.
There is also a secondary top-up loan of up to 20,000 euros, this is for where the property is not only vacant but also deemed unsafe.
What qualifies as a derelict house?
In order for this grant to be accepted the property must be the buyer’s main place of residence. The grant is to take an uninhabitable property and make it into a fit-to-live residence.
Getting a mortgage on a derelict property.
The one issue cited across the board for vacant/derelict property loans is the feasibility of mortgage lenders granting applications on derelict properties.
Even with the promise of the grant to improve the structural integrity of the property. Coupled with funds to improve aesthetics without the need for onerous planning permission
There are no guarantee’s mortgage providers will be willing to grant new owners a first-time mortgage on a property that is not in inhabitable condition.
What is the purpose of derelict house grants?
The purpose of the derelict house grants is to increase the volume of houses that are available to act as dwellings.
With the housing crisis in Ireland at its worst level ever, it’s important that the government takes remedial measures to try and combat the decrease in available properties.
The vacant property grant is actually one of many grants issued in the “Housing for all” strategy. The “housing for all” grant is a multi-annual, multi-billion euro fund designed to increase housing availability to an average of 33,000 per annum. The plan is set to incrementally increase housing to this level over the next decade.
The Housing for all strategy was approved into law in September of last year.
The plan doesn’t only focus on only rental and sale properties, it looks at all property types including social and affordable housing. The plan’s main goal is to provide an optimal mix of all housing types, in a bid to eradicate homelessness and affordability concerns.
Can I apply for other grants?
Currently, there is no cap on how many grants you can apply for, you just can’t apply for a grant you have received twice.
Like all grants, it’s an application process. So there is nothing to say an evaluator may deny you one grant if you have received another with overlapping areas of interest.
But at this point, this is speculation. As the law stands you can apply for multiple grant types on one property unless the eligibility criteria specifically forbid it0.
Derelict and vacant homes grant eligibility
Like all government grants, there is a stringent criteria for who can apply and subsequently be awarded the grant.
For the derelict grant part of the grant, the property must be inhabitable and deemed unsafe or unsound in its current condition.
For the vacant property element of the grant, the property must have been empty for a period of 24 months or more and have been built prior to 1993. The property must also be included under one or more of the categories set out in the “Framework of Priorities”. The full Framework of Priorities is included on the application form
How to know if a property is eligible for the derelict or vacant property grant?
There are roughly 500 towns/villages in Ireland with a population of 400 or more. The properties in these towns or villages are eligible for these grants.
However, there are a few villages that differ from this criteria and are not listed as villages by the Central Statistics Office (CSO).
Always check with your local authority before making an application.
Can the grant be recalled?
Yes – If you sell the renovated property within 5 years of the grant’s approval date, then you will be legally required to pay the grant back in its entirety.
Repair and leasing scheme
The news was welcomed not only by first-time buyers but landlords alike. A sister scheme which benefits landlords and developers has also been launched called the “Repair and leasing scheme”
The initiative allows landlords/developers to make an application for their own vacant properties.
What qualifies as a derelict house?
There are different definitions of what classifies as a derelict structure, but for the purpose of the grant, the definition is a structure that in its current form is uninhabitable without improvements.
Each application will be reviewed along with the property that’s intended to purchase, the evaluator will decide if the property classes as derelict.
Property Management Dublin
If you are in the process of a grant or considering applying, then the experienced team at KPM can help.
KPM Group has helped countless landlords free themselves from the day-to-day management of their portfolios. Trust us to deliver the maximum return on investment while providing quality property management services.
If you would like to speak to us here at KPM about your portfolio, then get in touch today, and a member of staff will be happy to help in any way we can.
