Architect Fees / Mortgage

[Abbi]

Hi

 

Quick question - we've received a quote from an architect, which we're happy with. If we pay fees now (we haven't yet got planning permission) are we able to recover these retrospectively when we apply for a mortgage to complete the build?

[ToughButterCup]

Have you gone through the Due Diligence Process?  Have you asked to see the architects terms and conditions? 

[Roundtuit]

Recover them from where?

[Abbi]

Yes, we're happy with Ts&Cs etc. We are more concerned with being able to add the fees we pay now to our mortgage, which will be processed nearer to the start of development.

[Roundtuit]

I don't think the lenders will worry about whether the fees come from your savings or your borrowings, it's effectively the same pot.  They'll just be interested in your equity, the cost of the project and your ability to pay the mortgage.

[Abbi]

Thanks

[Ferdinand]

What happens if you go over budget by say 10%?

 

Does the A suddenly get 10% more because a material price went up?

[Temp]

Anyone here got a mortgage from the Ecology Building Soc? Perhaps you could explain to @Abbi how their LTV and stage payments work.

 

LTV upto 80%?  When you get say 25% of the way through the build do they send a valuer and pay you 80% of 25%?