Q&A: QIs there any way of calculating how much a new extension (kitchen/utility) is going to add to the value of my house? I have three quotes from builders, as recommended, and I’m trying to match them with a likely increase in value. Would an estate agent do a valuation if you are not selling the house and are just curious?
A
In a fast moving, rising market a major home-improvement such as an extension with a kitchen and utility room would be fairly easy to value. But that, as you know, is not the state of the market now and estate agents are having significant difficulty valuing any property at all because there is so little being bought and sold at the moment and the market dictates the price. However you can call in an agent to get them to give you their professional opinion on the market value of your house – this will cost you (around €200) and is not really worth doing unless you need it for mortgage/insurance purposes or are thinking of selling. The way you really need to value your extension is to calculate how it improves the quality of your everyday life – a bigger kitchen for more family meals, a warmer environment, more daylight, etc. You’ve made a good start by getting three quotes. Does any of the builders come recommended? Have you seen any of their previous work? Do they have insurance? What exactly are you getting for your money – scrutinise the details. How will they handle any extras you require, eg a new socket or a change in flooring? How long will they take? Etc.
Rise in tax?
Q
If, as expected, the tax on second homes is raised in the Budget way beyond €200, when will that charge apply? And if one is in arrears (as I am for my holiday home) will the arrears be based on the new rate or the original €200?
A
The NPPR is a levy on non- principal private residences (not necessarily second homes) and as you say it is €200 for 2009 (paid by July 31st, 2009) and €200 for 2010 (paid before June 30th, 2010). After those dates, late payment fees apply. The late payment charge is €20 per month and if you have owned your holiday home since 2009 when the levy came in you are already in serious arrears and would be advised to try to get on top of the payment. New taxes and levies introduced in any Budget – and it’s not certain that there will be any change to the NPPR levy, though you are correct in saying it is widely expected – also come with a date of implementation some at midnight on Budget day, others in the future. Late payment charges are typically based on the fees that were in place at the time the payment was due, currently €200, plus €20 per month.
Your questions
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