Bit of a pickle

[Lewis88]

I have full planning and suds consent for my home, own the plot outright and have just sold my current house. I have got a commissioned a quantity estimation through estimators.com and it has come back as 385,000 ex vat to build the house. This means that I’d need a mortgage of 462,000 minus my equity.

 

My query is can I just apply to the mortgage company to build the house without the attached garage (valuation changed to suit) and would the current planning permission be acceptable to the mortgage company?  I can’t imagine planning would have any issues with not building the garage and I’m ready to lay the base. 
 

I’m hoping to then use the vat reclaim cash to build the garage - even if that means reapplying for planning permission. Has anyone done this before or is this unchartered territory?

[Oz07]

When I applied for a self build mortgage years ago your cost estimates could be done by yourself and I suspect along as they were within a certain range per m2 then this passed muster. Just to make sure the borrower isn't in dream land. How big is your house m2? I reckon you could just adjust your figures and lose 40 - 60k on 460k and you'd still pass their checks.

 

With your figures above are you saying the mortgage would need to be 460k because of the VAT? Providing you can comply with your planning conditions and provide enough parking spaces your probably not obliged to build the garage so your plan sounds ok to me. I'm not sure if you'd have to start telling your mortgage company about this it could probably just open a can of worms. Then when your VAT reclaim comes through you can finish off any externals that don't stop you getting your completion cert off building control. It's probably a good idea to split you building control application if possible and going down this route so you don't end up with a place they wont sign off until garage built. Need completion cert for VAT reclaim I think. Depending on garage location and size you might not even need to include on your building control plans although at 50k build cost I assume its quite a decent garage?!

[ProDave]

Our first build we did that, completed the house before the garage.

 

No issue with planning, but building control required us to do the building warrant for just the house so they could issue completion on that and we could do the VAT claim, and then a separate building control for the garage.  Of course it meant the materials for the garage you could not reclaim the VAT.

[G and J]

If cash flow allows (we currently only talk about cashflow as little as possible in our house at the mo.  😕 ) then there might be efficiencies from building the garage at the same time, which, coupled with the VAT saving, might mean the resultant increased borrowing cost is more than compensated for.

 

 

[Oz07]

2 hours ago, ProDave said:

Our first build we did that, completed the house before the garage.

 

No issue with planning, but building control required us to do the building warrant for just the house so they could issue completion on that and we could do the VAT claim, and then a separate building control for the garage.  Of course it meant the materials for the garage you could not reclaim the VAT.

Unless you stockpiled them during the house build 🥷

[Redbeard]

10 minutes ago, Oz07 said:

Unless you stockpiled them during the house build 🥷

 

Wondered about that!

[saveasteading]

2 hours ago, G and J said:

efficiencies from building the garage at the same time,

At least the foundations along with the house. Maybe the drains too as it part of a single, and more efficient, process. It would also reduce the stress and mess of starting again.

[G and J]

Stockpiling has an effect on cashflow. 
 

As for doing all the foundations in one go, Amen to that.  The thought of getting back down in the mud again…….   just say NO!

[Lewis88]

Thank you all for the reassurance! That is exactly the news I wanted to hear! The house is large but traditional construction with costs considered, the house itself is on a footprint of 13mx10.5 however I’m not really interested in marble work surfaces and high quality touches, I’d prefer something more run of the mill and rustic.  The garage itself is 6.5mx 10m and attached to the house.
 

I will put the base and all drainage in but will wait until I have the house done and potentially revisit it before final sign off (if there’s money left) if not the house will get signed off then the vat reclaim will be used to build the garage, I have a habitable space above the garage which is entered from the first floor, the lintels will go in but will be getting sealed up just in case. 

[Oz07]

34 minutes ago, Lewis88 said:

Thank you all for the reassurance! That is exactly the news I wanted to hear! The house is large but traditional construction with costs considered, the house itself is on a footprint of 13mx10.5 however I’m not really interested in marble work surfaces and high quality touches, I’d prefer something more run of the mill and rustic.  The garage itself is 6.5mx 10m and attached to the house.
 

I will put the base and all drainage in but will wait until I have the house done and potentially revisit it before final sign off (if there’s money left) if not the house will get signed off then the vat reclaim will be used to build the garage, I have a habitable space above the garage which is entered from the first floor, the lintels will go in but will be getting sealed up just in case. 

Just make sure you have separate building control applications then and explain your method to the BCO he will work with you then hopefully

[Oz07]

is your house roughly 250m2 net internal space then? If you have a look around here at build costs you could be anywhere from 250k-upwards of 500k so there is a lot of wiggle room on the figures you submit to lender.

[Roundtuit]

We put foundations and drainage in, then delayed the garage build for several years.  When you get round to building it you can still ask trades to zero rate, so depending on your build method the vat hit might not be as big as you think.

[Temp]

On 27/09/2025 at 13:57, Lewis88 said:

it has come back as 385,000 ex vat to build the house. This means that I’d need a mortgage of 462,000 minus my equity.

 

That appears to assume you will be paying VAT on everything including labor? Labor should be zero rated to you, cannot be paid and reclaimed. You only pay and reclaim VAT on materials you buy. 

 

You might still want to apply for nearer the £462k mortgage though to give some flexibility if costs over run. 

Edited September 29 by Temp

[Spinny]

Just out of interest when peeps talk cost of building a house - are you talking raw build cost, or totally complete decorated, fitted and finished cost ?

you can spend anything on kitchen, bathrooms, lighting, curtains, flooring yada yada

 

contingency ?