Mortgage stuck until planning approved – Buildstore and broker won’t move forward

[loz140]

Hi all,

 

We’re trying to self-build and have found a plot we really love, but we’re hitting a frustrating roadblock.

 

The plot has existing planning permission, but we’d need to submit a new planning application - the design would be quite different (smaller and more affordable to build). Both Buildstore and an independent broker have told us they won’t progress the mortgage until the new planning permission is fully approved.

 

We can’t buy the land without the mortgage - so we’re stuck in a catch-22.

 

Has anyone found a way around this? Wondering if we could:

 

• Find a lender who will consider progressing and will accept a change to planning after land purchase.

• Find a different broker who understands the self-build process.

 

Would be so grateful for any advice or shared experiences. Feeling a bit defeated at this point.

 

Thanks in advance,

[nod]

I think most on here have bight the plots prior to mortgage 

 

Could you not use the existing planning Then re apply once you have secured the funding 

[loz140]

1 hour ago, nod said:

I think most on here have bight the plots prior to mortgage 

 

Could you not use the existing planning Then re apply once you have secured the funding 

Thanks - that’s good to know.

 

One thing I’m wondering: is it actually allowed to secure the mortgage based on the existing planning, and then reapply for a different design after the funding is in place? Has anyone done that?

[deancatherine09]

1 hour ago, loz140 said:

Thanks - that’s good to know.

 

One thing I’m wondering: is it actually allowed to secure the mortgage based on the existing planning, and then reapply for a different design after the funding is in place? Has anyone done that?

 

We did, and it was fine - but we went from a less expensive build to a more expensive, and so the end value went up and naturally the bank were happy. I'm not sure how it would work if you plan to apply for permission for a smaller / more affordable house? We were with Ecology Building Society who were flexible

[Conor]

18 hours ago, loz140 said:

Thanks - that’s good to know.

 

One thing I’m wondering: is it actually allowed to secure the mortgage based on the existing planning, and then reapply for a different design after the funding is in place? Has anyone done that?

It happens all the time, we did.

 

The important thing to bear in mind, is your new design, when completed, likely to be lower in value than the one in place? I.e. smaller foot print, fewer bedrooms? If so, that could be an issue.

 

How are you funding the build? Do you need a mortgage for both land cost and construction? Near in mins the funder will only release money in stages, based on the value of the plot at each draw down.

[loz140]

2 hours ago, Conor said:

It happens all the time, we did.

 

The important thing to bear in mind, is your new design, when completed, likely to be lower in value than the one in place? I.e. smaller foot print, fewer bedrooms? If so, that could be an issue.

 

How are you funding the build? Do you need a mortgage for both land cost and construction? Near in mins the funder will only release money in stages, based on the value of the plot at each draw down.

 

Thanks, it's helpful to know that!

 

Yes, our new design would be smaller in footprint as we can't afford the size of build that's in place now.

 

We were hoping to get a cost-based self-build mortgage with stage payments, but that does need to cover both the purchase of the land and the construction.