Hello everyone - complete beginners planning a demolish and rebuild!

[Selfbuildnewbie]

Hi All

 

I found you while googling some questions about the VAT reclaim process and was amazed how many helpful members there seem to be - excited to have joined!

 

I recently inherited half a bungalow on the next road to my parents, and my husband and I are in the process of buying the other half with a view to demolishing the existing property and building a 4 bed family home. We decided to go ahead after unsuccessfully looking to buy a house in the area (currently living in a cladded flat in London - the joys), though are very conscious we may have bitten off more than we can chew given our level of experience - I can just about hang a picture unaided. We’ve also just found out we are expecting twins, so life is going to get very busy within the next 6 months! In terms of plan we have an architect already and are hoping to find a good main contractor who is able to take on most of the project management when it gets to construction stage - with us and my parents keeping a close eye.

 

We just received our first draft plans from the architect last week so it’s all getting very real and exciting. But this has thrown up a couple issues:

1) The proposed house is about 40m2 bigger than expected. Not a massive deal, but would take us outside of our original budget, so we’re now having to look at financing options more seriously and looking at self build mortgages however we would only really be needing a ‘top up’ in the later stages and I’m not sure if the usual lending structure fits with this.
2) We would ideally be looking to create an in out drive (existing entrance is narrow, shared with neighbor and has a green cabinet on one edge so limited visibility) but unsure whether our planning application should be submitted based on the existing access/with our ‘ideal’ access arrangement/whether we should be applying for additional access ahead of submitting the planning application.

Very grateful for any comments or

tips, but most of all just wanted to say hello ? 

[Temp]

1) I recommend getting the mortgage sorted before you start and drawdown their money first if possible. This is because its much much harder to get a mortgage on a property that is part built. In addition its not unheard of for a mortgage company to find a reason to change their mind. A change to your employment status for example might be enough to loose the mortgage. I don't mean to worry you, its rare but it has happened. They can't refuse the money after they have already given it to you. Don't forget to allow for a decent contingency. 

 

2) Not quite sure i quite ollow your description. In general the planners will allow you to use an existing entrance that has visibility splay problems as long as the new development won't increase the amount of traffic using it. That said I recommend applying for what you want first and see if they raise any issues. If you want to use existing entrances I would say that in the application and point out you won't be making anything worse. If you think your new in-out proposal will reduce the possibility of an accident you should also mention that.

[Temp]

PS..

 

Remember to include all landscaping you might want to do in you planning drawings. Including any trees you plan to plant etc. This allows you to claim the VAT on those items. You can't if its not on your planning drawings.

 

Your demolition work must be zero rated to you (not reclaimed) as its labour.

 

If the CIL is in your area make sure you claim the exemption BEFORE doing any work on site. Otherwise you can lose the exemption.

Edited May 3, 2021 by Temp

[Marvin]

When working as a Project Manager for clients, I would always express caution on stretching the finances before you are even half way through the job!

 

For my clients a perfect house is a house they like and can afford. If you don't have this you have the perfect house that someone else ends up owning.

 

If you gave an architect the role to design your home, specifying a certain square floor area and or certain facilities / rooms and the result is different, then you have a few choices but I would humbly suggest that getting more money is not a good option.

 

It may be good to measure the rooms that are planned and see if you can see where the floor area could be reduced, or see if you could loose a room or two. I'm sure the architect would rather the design is compromised rather than not built at all because you can't afford it.

 

I would look for at least 15% of your budget to be a reserve before you start any work on site.

 

Keep an eye on cost engineering problems that arrive as the project moves along and find a way to solve them. ( very good to understand how cost engineering works and learn to apply it.)

 

Biggest risks of sudden increases of cost in my experience are changing plans after you have started, vague plans and ground works! 

 

If one part of the budget goes up remember to find a saving somewhere else when it happens. It's not going to go away!

 

Finally if you do get to the finishes and you kept any of your reserve I bet you could find a use for it!

 

Many others will have sound advice I sure.

 

Good luck.

 

Marvin

[Selfbuildnewbie]

Thank you both - that is all excellent advice and fully taken on board. We are just fortunately/unfortunately in the very lucky position of having a flexible budget, but that doesn’t mean we should use it all! We do need to look closely at the room sizes as all of the bedrooms seem very large!

 

Noted on the mortgage drawdown too - very good point!

 

Its going to be a long road... 

[Jilly]

Yes, it is a long road, someone on here took 8 years. Whilst I'm not suggesting that long, it's less stressful taken slowly, and your new babies will take up a lot of your time soon, so start researching and enjoy the ride. You can go to the local planners for a 'pre application ' meeting, which lets you sound out what they do and don't like.

[ToughButterCup]

58 minutes ago, Jilly said:

...

your new babies will take up a lot of your time soon, so start researching and enjoy the ride. 

...

 

"Friends Romans and New Buildhubbers,

Hail Gluttons For Punishment!

Blame the honorable children not, for they 

Come not to steal away your hearts

But to play in the brick dust and make mud pies

To discover the sharpenss of your tongues and chisels.

Let them work their mischief, let them work the whacker plate

Let them lose their milk teeth on your hammers

And let your parents have the twins for three weeks every month.

 

(Apologies to both Bill and Bowdler.)

Edited June 9, 2021 by ToughButterCup