bpk101

Thanks Conor, this is all really helpful advice... i did think the broker might have got it wrong as i've heard this sequence being done before. In terms of where to turn next then for advice on what we may be able to borrow, should i speak with someone like Ecology directly and ask them to do some sort of mortgage affordability check to calculate what we might be eligible for based on our current financial status? Or do i need to handle this through a broker? Does anyone have experience with Buildstore? Are they a lender or a broker? Or just a general self-build advice platform?

Interestingly a mortgage advisor has just got back to me saying it's not possible... their response below: (Incidentally, in case it has any bearing the mortgage i'd need to buy the house/plot would be a second mortgage) "Unfortunately it wouldn’t be able to be done as a second mortgage at all because of what the property will be used for (demolish and rebuild), even though you plan to re-pay the mortgage back before you demolish it, its not seen as a second residential. For any self build mortgages, planning permission has to be obtained. So this would either involve you purchasing the house outright with no mortgage, applying for planning permission and once this is granted then development finance can be looked at, or you can purchase a house with planning permission already granted but these tend to be a lot more expensive." Any thoughts?

So how much can you be looking at for connection of utilities to an empty plot? I've heard stories (and seen posts on here) where people have been quoted north of £100k just for water, let alone gas, electricity, telephone and broadband etc! Obviously i don't want to be buying an empty plot and facing these sort of costs later down the line when we come to build.

Plots with planning consent?

As the title suggests, which option is best and what are the pro's and con's of searching for and buying an empty plot of land (with planning consent) versus buying a run-down but habitable house to demolish and rebuild? Every article i come across when searching for advice on how to find the perfect plot only ever focuses on empty plots of land. Whilst every architect i've chatted to have strongly advised on buying a house and demolishing it due to utilities already being in place, amongst other reasons. Thoughts?

Thanks... i've started reaching out to a few brokers i've used in the past and will see what advice they come back with.

Thanks, so the correct sequence would be: 1: Apply for 'residential' mortgage to buy the house 2: Gain planning permission for demolish and rebuild 3: Apply for 'self-build' mortgage to pay off the residential mortgage and fund the build ? Would i need to inform the residential mortgage lender of my plans (to gain planning and switch to a 'self-build' mortgage) at point of application? Or is this not necessary given the house wouldn't be demolished until we switched to a self-build mortgage with another lender?

Hi – My OH and I are looking to pursue a self-build project and i'm at a stage where i need a bit of advice on mortgage options to fund it. We've been advised by various architects that buying a run-down (but habitable) house to demolish is the best way to acquire land for your build in terms of saving cost to install utilities and ease of planning approval. If i was to pursue this option... would i require a normal mortgage from a typical high st. lender, or a different kind of mortgage from a specialist self-build lender (Ecology etc.)? And in relation to Build Stores 'Project Types', would buying a house to demolish be classed as 'Self Build', 'Property Renovation' or 'Property Conversion'... or none of these? Thanks

Yes completely agree, we're more than happy to think economically with regards to fixtures and fittings. We don't necessarily desire a bank busting Gaggenau kitchen for example, we achieved a really high finish in our current home on a budget by spending time to research some choice products. For example our current kitchen is Ikea carcasses but doors and work surfaces made by a danish company called ReformCPH who specialise in fronts designed by architects and built for Ikea cabinets, 3 years later and it still looks and works great! We'd be happy to do this again and if we do win the lottery 10 years down the line, well! Thanks! Definitely exciting, if not slightly nerve-wrecking ?

Do these figures seem right and have i done the self-build estimate correctly? Is 20% the right amount to factor in for all fees? Is deducting 20% at the outset the right way to account for contingency and is it enough?

As this is our once in a lifetime 'forever home' (at least that's the plan) we do want to create something of a relatively high standard. I'm a designer by trade (sadly not in a field related to architecture or construction), and the aesthetic of the house is extremely important to us. We'd like to work with a very good architect who can deliver in the style we want and that could impact on our cost. Not that i'm considering using this company but i love their work but they clearly state on their website that projects they take on typically have a cost per sqm starting at £3500(!) https://www.stromarchitects.com/architecture-one-off-contemporary-houses/ At the moment i think main contractor is the route for us with the architect doing a series of site visits to ensure the plans are being followed correctly, then i'll be overseeing the project management side of things (timings, researching and purchasing of not construction fixtures and fittings etc). Is this a cost effective route?

Yes we're slowing putting this together. Is this in reference to the house we currently own (and have equity in) being in London? We won't be selling for 3-4 years yet so can't really foresee what the market will be like then. If you're suggesting the self-build will be in London, it won't. We're looking to build outside of London but ideally somewhere in the South East (land budget allowing).

Hi — I'm trying to arrive at some rudimentary budgeting figures for a potential self-build project my OH and I are hoping to embark on so we can see what's possible in terms of size and spec. I've followed a few basic financing and budgeting formulas that have been suggested to me but i'm not sure whether my calculations are correct and whether i'm accounting for everything that needs to be considered. What i'd like to arrive at is... 1. A rough idea of our potential construction budget 2. An approximate house size in sqm based on this budget Below are the figures i'm currently arriving at. Any advice on whether i'm doing this correctly or what the correct figures should be would be fantastic. ——————————— Joint household income: £295k Multiplied by 3 to arrive at a potential maximum mortgage: £885k Plus current savings: £50k Plus equity in current house: £300k Equals a total budget of: £1.235m Based on land being 1/3rd of this figure and the build being 2/3rds: Land budget: £411k Self-build budget: £822k From the self-build budget i've deducted 20% / £164k for all the fees (architect, structural engineer, M&E, QS, building control, planning fee, party wall fee) I've then deducted 20% / £164k for contingency This leaves a final construction budget of: £644k And a potential house size of: Low spec (£2000 per sqm) = 322 sqm Mid spec (£2500 per sqm) = 257 sqm High spec (£3000 per sqm) = 214 sqm ———————————

Saving anywhere near 400k in time to 'move quickly' would be near impossible. Even over 3 years it would mean saving somewhere in the region of 10k a month! Not likely with a London mortgage and nursery fees. What do you mean by 'refinance the existing house' and what would that process look like in terms of raising capital to buy land? Whilst our income is good and we've added value to our current home, large sums of cash (apart from 50k savings) is not readily available. Thanks

My first step was to establish whether a self-build was even a viable option (it looks like it is - for now). My next step is to work out a savings strategy with my OH, she agrees paying cash for land is the better option so let's see what plan we can hash out.