Financing Your Self-Build Home
- Posted by Ryan Hood
- On 9 November 2016
- 0 Comments
- Costs, Fees, Finance, Home, Mortgage, Northern Ireland, Self Build
So, you have decided you want to build your dream home? There is a very good chance you will finance the build with a self-build mortgage.
This morning I spent some time in the Lisburn branch of the Bank of Ireland with their mortgage adviser Pat Greene.
He gave me some great advice to help our clients as they plan their self-build.
Planning and calculating Total Costs is one of the most important parts of the project.
Most people start a project and quite often only think about the build costs. How much for the bricks and mortar, the kitchen and bathrooms, the tiles and décor? These are all very important elements but there are also other costs that need to be factored in to ensure that the project is achievable. Let’s look at what some of these could be.
Costs and Details to consider :
- Are you selling an existing property? How long will this take? How much equity do you expect to get out of it? What fees are required to sell your existing property?
- Site purchase costs.
- Is the site gifted? If so is there a legal cost to transfer title?
- If purchasing a site, ensure the lender accepts the site is suitable for mortgage purposes prior to agreeing the purchase. Problems can arise if the site is accessed via a shared lane or if the site is within the curtilage of an existing farm.
- The cost of site clearance and preparation. Does the site need additional works to the boundary, access or site drainage? This can add significant costs to the project budget.
- Professional Fees – Solicitor, Architect, Quantity Surveyor, Health & Safety professional, Structural Engineer.
- Planning Approval. How likely is it that planning permission approval can be achieved? A Planning Application fee for a single house is £851.00.
- Building Control Approval. Again, there is an application fee for this depending on the size of the house.
- Contractor Costs. Will you engage one main contractor for the build or employ direct labour?
- The cost of insurance – Insurance cost depends on whether you use one main contractor or employ direct labour.
As you can see there are many things to consider which is why it is important to speak to an Architect early in the process. We would also suggest that you speak to a mortgage adviser before you start to establish a realistic budget.