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Self-build home top tips

The self-build journey can certainly be daunting, but it can also be very rewarding, resulting in the home of your dreams, designed down to the very last detail, by you.

The initial stage is finding a plot of land.  Planning permission may have already been granted but if it has not, it is important to make sure that the property you wish to build can be permitted.

It is also imperative to check that the plot you are going to buy has access and can be connected to services, for instance you may not need gas, electricity, or a telephone immediately, but water supply is needed early on.  Research the prices for your connection costs so you can ensure they are in budget.

You will need to engage with a qualified architect to help you design your home and to oversee the build throughout, ensuring the build complies with rules and regulations.

You may already have a builder in mind who can give you an indication of costs, this will help assess affordability and ensure that this is the right thing for you to do.

Affordability is key, as well as having enough for the build costs, there are also the one-off costs associated with a self-build to consider.  Additionally, you need to ensure that you have adequate funds available to you for the unexpected costs.

These unexpected costs could include:

1) Material costs increasing

2) Time scales may be increased

3) Complications may arise along the way

Whilst the property is under construction you will need a specialist insurance policy, which covers public and employee liability and personal accident.  This is something you can discuss with your architect, and they can guide you on this.

Affordability

It is important that a complete affordability assessment has been carried out before you start on this journey.  Most often, borrowing is required to be able to go ahead with a self-build, knowing borrowing limitations and different lender’s lending criteria will assist you in this part of the journey and this is where we can help.

Self-build Mortgages:

Unlike a traditional house purchase mortgage, a self-build mortgage is normally charged at a higher rate and can involve some high set up fees.  Although there are fewer lenders who offer self-build mortgages, there are still plenty we can reach out to for you.

You have the option for the mortgage to be on the interest only basis during the build, then on completion you will be able to reassess your options e.g., transferring the mortgage onto the repayment basis and choosing a competitive residential product.

We would recommend that you speak to us as soon as you start considering a self-build project, so we can discuss and advise you of the costs involved and access a lender who has the right product to meet your individual needs and circumstances.

The self-build mortgage funds are released as the build progresses.  These stages are normally:

1. Land purchase
2. Footings and foundations
3. Walls constructed
4. Roof on
5. Completion

Reclaim VAT

A major benefit of a self-build is that you can reclaim VAT on the majority of the building materials.  It is important to keep a hold of all VAT receipts as you go along.  You can submit a claim form at the end.  To obtain further information on this please visit the government website – https://www.gov.uk/vat-building-new-home/how-to-claim.

Self-builds are not for the faint hearted, but if you are dedicated to the end result let us help you on your journey!

If you would like to find out more, we have a team of experts on hand to assist you.  Contact us or visit one of our offices in Dalston, Dumfries, Penrith or Workington.