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Not living next to the build - Self Build Mortgage


paulc313

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Evening,

 

I have been told by buildstore that to get the self build mortgage I will need to live next to the plot that I am building on. Our current circumstances are that we own a plot of land next to my mother/father in law. They stay roughly 3 hours away from where we stay just now. My father in law will be the one building and project managing the build for us as he does this for a profession. I don't understand buildstore's logic that we have to be living next to it day in day out. Once we get the mortgage we will be looking for jobs in the area they live so will eventually move up and we can stay at theirs practically every weekend if need be (and will be if we get a job while the build takes place). Can someone explain the logic behind the requirement of staying next to the build 24/7 that buildstore want? 

 

Thanks

 

Paul

Edited by paulc313
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When I asked Buildstore they said that's just what the Banks/BS want. They didn't really gave me an explanation, that's why i'm asking the question here. Because my partner and I have office jobs we can work from home from time to time so we could theoretically work in my father/mother in law's house more than 50% of the time which is adjacent to the build...

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The answer @paulc313 is not to go with BuildStore .....

 

There are other brokers and depending on where you are building you may find a local building society can do you a better deal. 

 

There are plenty of horror stories on here about when BuildStore change their minds ... 

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9 minutes ago, PeterW said:

The answer @paulc313 is not to go with BuildStore .....

 

There are other brokers and depending on where you are building you may find a local building society can do you a better deal. 

 

There are plenty of horror stories on here about when BuildStore change their minds ... 

 

^ This. I've not heard of any other self-build mortgage with this requirement. Not sure how anyone can reasonably expect people to live on their site when they already have a perfectly reasonable house/flat that they're already in...

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We split the plot of our previous property and built our new build on the bottom half, so as it happens we were living next door.  But my point was that we didn't raise a loan on the new build, we remortgaged our existing property, and this gave us enough cash to do the build, though it was a bit tight at the end.  

 

There was nothing underhand here.  We were upfront with our BSoc (Monmouthshire) and even got a no capital-repayment loan at an extremely competitive rate (under 1½% for first two years) because our stated repayment strategy was to pay off the loan from the proceeds of the sale of the farmhouse.  I don't know what your circumstances are but if the asset value of your current property will cover a combined value of any existing loan and the cost of the new build then you might be able to raise the capital solely on your existing house.  If you can do this, then the rate will be better than you will typically find for a new-build loan, as the lender does not bear any risk associated with the build.

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