Self build mortgage costings with our without VAT

[PSC88]

Hi when submitting project costings to lender will they add the VAT on to this to determine the build cost and hence borrowing amount?

 

as some parts will be 0 rated? And others will be reclaimed post completion ?

 

 

[SBMS]

10 hours ago, PSC88 said:

Hi when submitting project costings to lender will they add the VAT on to this to determine the build cost and hence borrowing amount?

 

as some parts will be 0 rated? And others will be reclaimed post completion ?

 

 

They, didn’t add VAT on for us, or reflect any reclaim.  Some Items in a build that do attract VAT such as fitted wardrobes aren’t fixed items and therefore typically necessary as a built cost.  Things that aren’t zero rated should be budgeted at their inclusive of vat price.

 

 I guess the impact of this depends on who is building. If you are primary contractor driven you won’t really ever see any VAT or have to cover any VAT - it’ll be covered and reclaimed automatically by contractor. Are

you buying materials and managing yourself?

[PSC88]

Yes buying materials and self managing