Building over a long period - Thoughts?

[soapstar]

Hello Folks,

 

Just looking for other peoples experiences when doing their self build over several stages long term which is an option I am considering given finances etc. Its looking more and more likely that we wont be able to get our finances together to start our build in 2019 as originally planned, this is mainly due to our current property not selling!

 

Itching to get something underway we are toying with the idea of getting our ground work / foundations done next year to get us ahead of the game for the following year to begin the actual build. We should have the cash to fund the foundations without any mortgage or loans required. However this brings me on to the important questions!

 

1. We have heard from one mortgage provider that they do not like to fund a build that has already been started (foundations) for example - has anyone else heard this? It may be a way of scaring us to taking out a larger mortgage I don't know!
2. Would funding the foundations with our own cash be unwise given this money would obviously be very handy as a deposit for funding the build if we started bare (no foundations).

 

If anyone has been in this position or done anything similar your advice would be appreciated! How did you find it in general building over a longer period? Did you find it helped to relieve the stress rather than going for the whole hog in one go!?

 

 

 

 

[the_r_sole]

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Edited September 26, 2019 by the_r_sole

[recoveringbuilder]

Hi, I’m not sure I can be of much help but I will ask if your structural engineer has specified what you need for the foundations, they can be one of the great unknowns until you really get into it and can end up costing way more than you expected. Where are you intending living during the build? We lived in a caravan for our last build which took 18months and we moved in before it was all done because by then we were losing the will to live, even on this build we’ve been in a caravan for 5 months now and that wasn’t meant to happen but due to builder troubles we’re a month over, nothing ever goes to plan no matter how well researched 

[ProDave]

Don't worry about the building warrant, you can extend it.  £100 buys you a 9 month extension, £200 buys you a 2 year extension.  The on line system to do is is somewhat clumsy to say the least and I messed it up earlier in the year and only did the 9 month extension, so early in the new year I will try again for another 2 year extension.  I will try and avoid the on line system and instead print the form and post it with a covering letter making it clear it is a 2 year extension I want.

 

Like you our financial issues are due to the inability to sell the old house when we wanted to, and we are now grinding on slowly, but now with a real prospect of eventually getting the new house finished without the sale of the old one.

[the_r_sole]

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Edited September 26, 2019 by the_r_sole

[newhome]

I extended my building warrant many times during the build. Sometimes I got a 6 month extension, other times it was 9 months, and once it was a year. I never knew why the timescales were different but the council seemed reluctant to allow a longer extension. The reason for the elongated build was not due to finances but because my husband became ill during the build and then it was left to me to finish it. The foundations were already in when I bought the plot as they had been put in by the builder who owned this plot and the one next door so he completed both sets of foundations together and he then completed the house next door and sold this plot with the foundations laid. There didn’t seem to be any question of the building regs being changed during that period. We were still building to the regs in place when the building warrant was issued. The council didn’t seem to be too worried about that aspect even though I only got the house signed off last year, some 10 years after the foundations were laid. 

 

Can’t comment on the mortgage aspect I’m afraid as I don’t have one. 

[Ed Davies]

Had my warrant extended by 9 months then another year (till October 2019) but the BCO did warn me that if I need another extension it'll need to be to new regulations “where practical”.

 

AFAIK the only change that would affect my house would be the requirement for a logging CO₂ monitor [¹]. The BCO couldn't think of anything else which would matter off the top of his head, either.

 

[¹] Actually, I already have a logging CO₂ monitor but whether my ESP8266 + Raspberry Pi setup which logs that as well as other parameters will be considered acceptable is another question.

Edited November 19, 2018 by Ed Davies
Misspelling of “off”.

[PeterW]

10 minutes ago, Ed Davies said:

...the requirement for a logging CO₂ monitor...

 

A what..??! Does this have some bizarre purpose and who checks the logs ..?

[Declan52]

The main issue you might have is getting a company /architect to certify your build once its started.  I got mine built and roofed using cash.  Went mortgage hunting and like you got turned down by a few as it had already started. 

My architect was willing to certify the build was done correctly and  at each stage once my approval came through he wrote a letter saying how is wind/watertight and built according to the regulations.  Had another letter when we done first fix and another at  plastered out then the final payment once completed. 

Another difficulty you might have is site insurance.  Get this setup once your ready to start as you might have issues if the house is built and then you go looking a policy. 

Theres nothing wrong with getting the mortgage approved and  keeping your cash for the  finishing touches and the  contingency fund. 

[Thedreamer]

You could do what we did and get the services on site with the access put in. Dig a few trial holes with a structural engineer to know what your foundations are going to be. 

 

Your only going to add value, it also removes uncertainty (connection costs) allows you to start digging trenches for foundations on day one and it's handy to have a temporary supply on site for brickie, joiner etc.

 

Doing both of these might allow you to go back to your lender and argue that some of risk has been removed therefore lowing your contingency slightly.

 

I wouldn't do the foundation before your mortgage is in place. If you definitely want to do this I would at least get some form of certificate from an architect or Quantity Surveyor that these have been checked for any future lender. You might also run into problems with self build insurance and warranties if you choose this route.

 

 

[PeterW]

I’d get the mortgage, draw down £5000 and then stick it into an account and leave it there.

 

There are plenty of people here - @JSHarris @recoveringacademic amongst others that have taken mortgages that have failed to materialise when they needed them as the lender has gone back on the deal prior to draw down. 

 

Use your own money when the banks is spent, they will happily accept your interest payments once you’ve taken their money ..!

 

[Thedreamer]

17 minutes ago, PeterW said:

I’d get the mortgage, draw down £5000 and then stick it into an account and leave it there.

 

There are plenty of people here - @JSHarris @recoveringacademic amongst others that have taken mortgages that have failed to materialise when they needed them as the lender has gone back on the deal prior to draw down. 

 

Use your own money when the banks is spent, they will happily accept your interest payments once you’ve taken their money ..!

 

 

I agreed my mortgage in February started the build in April and paid my self build arrangement fee yesterday! 1st drawn down is due to be in the bank on Friday.

 

If your using the bank's money first then your going to incur interest if the build is over a long period, it might also be tricky to get a drawn down of £5,000.  

 

I guess it all come down to the old self build triangle of time, cost and quality not being able to have all three. I would always choose cost and quality.

 

[Ed Davies]

Regarding CO₂ monitors

2 hours ago, PeterW said:

A what..??! Does this have some bizarre purpose and who checks the logs ..? 

 

https://www.gov.scot/Topics/Built-Environment/Building/Building-standards/techbooks/techhandbooks/th2017domenviro

 

3.14.2.

 

As I say, it's something I'll be doing anyway so I've not taken any more interest than reading that.

 

PS: I'll start another thread for any more discussion rather than derail this one.

Edited October 24, 2018 by Ed Davies

[scottishjohn]

On 24/10/2018 at 18:54, newhome said:

I extended my building warrant many times during the build. Sometimes I got a 6 month extension, other times it was 9 months, and once it was a year. I never knew why the timescales were different but the council seemed reluctant to allow a longer extension. The reason for the elongated build was not due to finances but because my husband became ill during the build and then it was left to me to finish it. The foundations were already in when I bought the plot as they had been put in by the builder who owned this plot and the one next door so he completed both sets of foundations together and he then completed the house next door and sold this plot with the foundations laid. There didn’t seem to be any question of the building regs being changed during that period. We were still building to the regs in place when the building warrant was issued. The council didn’t seem to be too worried about that aspect even though I only got the house signed off last year, some 10 years after the foundations were laid. 

 

Can’t comment on the mortgage aspect I’m afraid as I don’t have one. 

lucky you dumfries&galloway will definately want you to alter your build to suit any news regs if you go for an extension .