October 23, 20241 yr Good afternoon, i have been gathering quotes for the building of a house early next year and have now gotten down to the stage of making an agreement, how do most people proceed from here? the builder has said he would like to get it agreed soon so its in the diary as other people are coming at him with work which is understandable, ive told him that i will now need to go to a lender with his quote and apply for a mortgage, he says he will send out a contract to sign for now and an invoice for a deposit, im just curious is this standard practice and what sort of deposit is common? are the deposits normally refundable if the mortgage application is refused? thanks
October 23, 20241 yr If he gets the work booked in it will take time and resource that will be wasted if you cannot fund it leaving him out of pocket. Why not get your funding approved, then agree a start date and sign contracts. Find out how long the mortgage approval will take.
October 23, 20241 yr Author 3 hours ago, Mr Punter said: If he gets the work booked in it will take time and resource that will be wasted if you cannot fund it leaving him out of pocket. Why not get your funding approved, then agree a start date and sign contracts. Find out how long the mortgage approval will take. yes i know what you mean, the issue is he has a team of men and needs the diary kept full so once my mortgage is passes which i assume will take 8 weeks or so??? then id need to wait around until hes free again
October 23, 20241 yr 1 hour ago, Amateur bob said: yes i know what you mean, the issue is he has a team of men and needs the diary kept full so once my mortgage is passes which i assume will take 8 weeks or so??? then id need to wait around until hes free again and do not assume he will be just working on your job once it starts and nothing else he will keep his dairy full by having jobs at different stages to get best use of his men and then there are the usual hold ups .windows staircase etc etc so getting him tied up before mortagae would not be top of the list for me get funding sorted first I assume all other hurdles have been jumped -cos he might want to charge you if he is held by something you have not sorted
October 23, 20241 yr Definitely have the money in the bank or at least the stage payments ready to go once certain milestones have been hit before you commit to a builder. If you are a long way down the road with your lender and this quote will be the last piece of paperwork required you could well have your money in 4-6 weeks If you are only just starting your application could be 3-6 months before your ready to go sometimes longer.
October 23, 20241 yr 2 hours ago, Buzz said: If you are only just starting your application could be 3-6 months before your ready to go sometimes longer. +1 started our mortgage application early May this year, it came through mid September.
October 24, 20241 yr 17 hours ago, Amateur bob said: i have been gathering quotes for the building of a house early next year I would be worried if you can find a builder who can start almost immeadiatly probably means they are not very sort after and probably a reason for that
October 24, 20241 yr Author 13 hours ago, Buzz said: Definitely have the money in the bank or at least the stage payments ready to go once certain milestones have been hit before you commit to a builder. If you are a long way down the road with your lender and this quote will be the last piece of paperwork required you could well have your money in 4-6 weeks If you are only just starting your application could be 3-6 months before your ready to go sometimes longer. im planning to apply at the end of this month, i was hoping i could get builder to write detailed costings for each stage of the build but hes just written a list of everything thats included at each stage and then a total, will this suffice for lender? another issue is im self employed will this make it difficult? wife is on salary, cheers
October 24, 20241 yr Author 10 hours ago, ChrisInKent said: +1 started our mortgage application early May this year, it came through mid September. what was the hold up and who did you use out of interest? are u self employed? cheers
October 24, 20241 yr 10 hours ago, Amateur bob said: im planning to apply at the end of this month, i was hoping i could get builder to write detailed costings for each stage of the build but hes just written a list of everything thats included at each stage and then a total, will this suffice for lender? another issue is im self employed will this make it difficult? wife is on salary, cheers Hi @Amateur bob unfortunately I have no idea about self employed as the only experience I have is our own that we applied for , but i will say that our was fairly straightforward 2 people both on salary pay and a large sum of money in the bank and no mortgage, but it took months from the 1st introduction to finally getting it over the line .
October 24, 20241 yr 11 hours ago, Amateur bob said: what was the hold up and who did you use out of interest? are u self employed? cheers we took about 3 months, both self employed (1 sole trader , 1 Ltd company). This was using a broker to push things through. We didn’t have many issues. Biggest issue was the builders insurance for some reason the mortgage company wanted to be a named party. The valuation took an age 2 weeks to get a valuer and a week to get his report ! we owned the land, and also had enough in the bank to pay the deposit and first 2 builder payments. These days the legal and financial processes take ages.
October 24, 20241 yr 12 hours ago, Amateur bob said: what was the hold up and who did you use out of interest? are u self employed? cheers Build Store/Loan. We’re not self employed. One hold up was the mortgage surveyor who kept wanting to see a house on the plot when we hadn’t even started foundations. The solicitor took a couple of weeks and we had to change the rebuild insurance to meet the building society estimate - they had a 20% uplift to reflect costs if we needed a builder rather than us to finish it. The whole process just seemed to take ages even though we always responded to any asks within 24 hours. It only just came through in time in the end.
October 25, 20241 yr Author 11 hours ago, PNAmble said: we took about 3 months, both self employed (1 sole trader , 1 Ltd company). This was using a broker to push things through. We didn’t have many issues. Biggest issue was the builders insurance for some reason the mortgage company wanted to be a named party. The valuation took an age 2 weeks to get a valuer and a week to get his report ! we owned the land, and also had enough in the bank to pay the deposit and first 2 builder payments. These days the legal and financial processes take ages. Ah really, which mortgage company did you end up going with? im assuming tit was the lenders job to sort out the valuers and not urs? cheers
October 25, 20241 yr Author 10 hours ago, ChrisInKent said: Build Store/Loan. We’re not self employed. One hold up was the mortgage surveyor who kept wanting to see a house on the plot when we hadn’t even started foundations. The solicitor took a couple of weeks and we had to change the rebuild insurance to meet the building society estimate - they had a 20% uplift to reflect costs if we needed a builder rather than us to finish it. The whole process just seemed to take ages even though we always responded to any asks within 24 hours. It only just came through in time in the end. ah not so good buildstore is the name i keep hearing so prob one ill need to try ecology no longer do self build,
October 25, 20241 yr 31 minutes ago, Amateur bob said: Ah really, which mortgage company did you end up going with? im assuming tit was the lenders job to sort out the valuers and not urs? cheers we ended up with Harpenden via Mayflower. Yes it was Harpenden who organised the valuation (we are apparently a bit in the sticks so difficult to get a valuer 🤷🏻♂️). Went with Protek for warranty and built on a Building Notice (LABC), and provided Planning Drawings. Harpenden used company profit (averaged) for the limited company as opposed earnings which was good as well. we spent a while discussing with Mayflower getting different options from different mortgage companies before landing on Harpenden main reason was their flexible drawdown. They used a standard spreadsheet for building costs which you need to provide not just the builder’s quote.
October 25, 20241 yr Author 4 hours ago, PNAmble said: we ended up with Harpenden via Mayflower. Yes it was Harpenden who organised the valuation (we are apparently a bit in the sticks so difficult to get a valuer 🤷🏻♂️). Went with Protek for warranty and built on a Building Notice (LABC), and provided Planning Drawings. Harpenden used company profit (averaged) for the limited company as opposed earnings which was good as well. we spent a while discussing with Mayflower getting different options from different mortgage companies before landing on Harpenden main reason was their flexible drawdown. They used a standard spreadsheet for building costs which you need to provide not just the builder’s quote. ah really, ill look into harpenden and protek then althoug im in central scotland so will need to see if they can cover this area, did the builder draw up a spreadsheet detailing all the costs for the lender or did you have to get the likes of a quantity surveyor to do this? thanks
October 25, 20241 yr 3 hours ago, Amateur bob said: ah really, ill look into harpenden and protek then althoug im in central scotland so will need to see if they can cover this area, did the builder draw up a spreadsheet detailing all the costs for the lender or did you have to get the likes of a quantity surveyor to do this? thanks I filled it in. Using a combination of the quotes from builders, a very early QS report and other quotes (eg kitchens) and guesstimates. I can dig out the blank spreadsheet if it would be useful. I think I’ve posted it before. It was based on a TF solution. Edited October 25, 20241 yr by PNAmble
October 26, 20241 yr Author 19 hours ago, PNAmble said: I filled it in. Using a combination of the quotes from builders, a very early QS report and other quotes (eg kitchens) and guesstimates. I can dig out the blank spreadsheet if it would be useful. I think I’ve posted it before. It was based on a TF solution. yeah that would be helpful cheers my builder has just given me a total
October 27, 20241 yr On 26/10/2024 at 12:23, Amateur bob said: yeah that would be helpful cheers my builder has just given me a total this was the form I was asked to fill in. However Harpenden required 20% contingency at each phase and that my funds plus borrowing enabled me to finish with the contingency. Timber Frame costings form.xlsx
October 27, 20241 yr Author 2 minutes ago, PNAmble said: this was the form I was asked to fill in. However Harpenden required 20% contingency at each phase and that my funds plus borrowing enabled me to finish with the contingency. Timber Frame costings form.xlsx 27.46 kB · 0 downloads cheers cant get it to open though in that format
October 27, 20241 yr Not sure I can do that. I don’t allow Google anywhere near my computer. I’ll convert it to pdf tomorrow
October 28, 20241 yr Author 14 hours ago, PNAmble said: Not sure I can do that. I don’t allow Google anywhere near my computer. I’ll convert it to pdf tomorrow no worries, thanks
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