BUILD YOUR OWN HOUSE
HAVE YOU EVER THOUGHT ABOUT BUILDING YOUR OWN DREAM PROPERTY?
HERE’S WHAT YOU’LL NEED TO CONSIDER BEF...
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Build Your Own House

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Have you ever thought about building your own dream property? With UK house prices on the rise, what other options do you have when it comes to property ownership?

With thousands of self-build homes completed each year in the UK, we take a look at the things you'll need to consider before embarking on your own self-build project, including planning permission, finding a plot, self-build mortgages and more.

Via: http://www.gocompare.com/mortgages/build-your-own-house/

Published in: Self Improvement
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Transcript of "Build Your Own House"

  1. 1. BUILD YOUR OWN HOUSE HAVE YOU EVER THOUGHT ABOUT BUILDING YOUR OWN DREAM PROPERTY? HERE’S WHAT YOU’LL NEED TO CONSIDER BEFORE EMBARKING ON A SELF-BUILD PROJECT AROUND 12,000 SELF-BUILD HOMES ARE COMPLETED EACH YEAR IN THE UK £242,000 AVERAGE HOUSE PRICE IN THE UK (JUNE 2013) £150,000 £182,000 AVERAGE COST OF A 1ST TIME BUYER’S HOME UP TO 25% MIN. YOU WOULD NEED TO BUILD A 3-4 BEDROOM HOUSE ADDED VALUE OF YOUR COMPLETED HOME ON THE OPEN MARKET STEPS TO BUILDING YOUR OWN HOME 1 SECURING A MORTGAGE 25% YOU WILL LIKELY NEED A HIGHER DEPOSIT FOR A SELF-BUILD MORTGAGE, OFTEN AT LEAST 25% OF THE TOTAL COST DEPOSIT 75% MORTGAGE THINK ABOUT INCLUDING A 10% EMERGENCY FUND IN YOUR BUDGET 2 MONEY IS USUALLY RELEASED IN 5-7 STAGES, AND YOUR LENDER MAY ALSO ARRANGE INSPECTIONS IN BETWEEN PAYMENTS 10% CONTINGENCY THIS MAKES SELF-BUILD MORTGAGES MORE EXPENSIVE, BUT THINK ABOUT REMORTGAGING AFTER YOUR HOME IS COMPLETE TO GET A BETTER DEAL FINDING LAND PLOTS CAN SOMETIMES BE DIFFICULT TO FIND, BUT IT’S WORTH DOING THIS BEFORE DESIGNING THE LAYOUT OF YOUR HOME CAN’T FIND A PLOT? CONSIDER KNOCKING DOWN AN OLD PROPERTY AND STARTING AGAIN IF YOU DO FIND A PLOT YOU LIKE, CHECK THAT THE LAND ISN’T: ? IN A FLOOD PLAIN UNDER A FLIGHT PATH CLOSE TO A RAIL LINE NEAR A BUSY ROAD CLOSE TO OTHER PLANNED DEVELOPMENTS BEFORE BUYING A PLOT, CONSIDER GETTING YOUR PLANNING PERMISSION APPROVED FIRST STAMP DUTY LAND TAX (SDLT) FOR SELF-BUILD PROPERTIES, SDLT IS ONLY APPLICABLE ON THE COST OF THE LAND AND NOT THE VALUE OF THE COMPLETED HOUSE LAND COST SDLT RATE £125,001 £250,000 £250,001 £500,000 3% 1% £125,000 LAND COST ZERO% UP TO 3 FREE FOR UP TO £125,000! SDLT RATE £500,001 £1,000,000 4% YOUR FLOOR PLAN START DESIGNING THE LAYOUT OF YOUR PERFECT HOME HOW MANY BEDROOMS? BATHROOMS? ENSUITE? TRY TO BE SPECIFIC IN YOUR DESIGNS, BUT FLEXIBLE IN HOW THEY ARE IMPLEMENTED TO HELP KEEP YOUR COSTS DOWN AND WITHIN BUDGET 4 PLANNING PERMISSION THERE ARE TWO DIFFERENT TYPES OF APPLICATIONS: OUTLINE PLANNING PERMISSION THIS CHECKS WHETHER YOUR PROPOSED PROPERTY WOULD BE ACCEPTABLE TO YOUR LOCAL AUTHORITY, AND IS USUALLY VALID FOR 3 YEARS THIS IS A DETAILED APPLICATION FOR YOUR PROPERTY WHICH YOU WILL NEED TO HAVE APPROVED BEFORE ANY BUILDING WORK CAN START FULL/DETAILED PLANNING PERMISSION THE COST OF BOTH APPLICATIONS VARY DEPENDING ON YOUR LOCATION, BUT IS IN THE REGION OF £320 - £385 NOTE: 5 PLANNING PERMISSION IS A KEY STEP IN YOUR SELF-BUILD, BUT IT IS NOT ALWAYS STRAIGHTFORWARD - THERE ARE NO GUARANTEES THAT YOUR PLANS WILL BE APPROVED AND THE APPLICATION CAN SOMETIMES BE TIME CONSUMING ARCHITECT OR KIT HOUSE? “I WILL HELP YOU TO STAY COMPLIANT WITH BUILDING REGULATIONS, TELL YOU WHAT’S AFFORDABLE FOR YOUR BUDGET, AND ADD IN UNIQUE CHARACTERISTICS TO YOUR BUILD. IF YOU LIKE, I CAN ALSO HELP YOU WITH APPLYING FOR PLANNING PERMISSION AND MANAGE THE ENTIRE PROJECT FOR YOU FROM START TO FINISH.” “I’M ALSO KNOWN AS A PREFABRICATED HOUSE - IF YOU’RE NOT CONCERNED ABOUT HAVING UNIQUE ARCHITECTURAL FEATURES TO YOUR HOME, I WILL HELP YOU TO KEEP YOUR COSTS DOWN. ALTHOUGH I MAY BE LIMITED ON DESIGN, I’M QUICK TO CONSTRUCT AND YOU WON’T NEED AN ARCHITECT JUST THINK OF ME LIKE A FLAT PACK HOME.” 6 FINDING YOUR TEAM CHOOSE YOUR TRADESMEN CAREFULLY! ASK FOR THE PRICE OF THE WHOLE JOB BUT NEVER PAY THE FULL AMOUNT UP FRONT - PAY IN INSTALMENTS TO MAKE SURE YOU’RE HAPPY WITH THE BUILD THE CHEAPEST QUOTE MIGHT NOT BE THE BEST - CHECK REVIEWS & RECOMMENDATIONS YOU COULD SAVE MONEY BY SOURCING MATERIALS YOURSELF - YOUR BUILDER MIGHT BE TIED TO A STORE BUT YOU CAN SHOP AROUND FOR THE BEST DEAL COULD YOU TAKE ON SOME OF THE TASKS YOURSELF, SUCH AS PLASTERING, PAINTING AND DECORATING? 7 INSURANCE 8 START THE BUILD YOU MAY NEED TO TAKE OUT SPECIALISED INSURANCE TO PROTECT ANYONE WORKING ON YOUR BUILDING SITE - SPEAK TO AN INDEPENDENT FINANCIAL ADVISOR OR AN INSURANCE BROKER ABOUT THIS NOW THAT YOU HAVE EVERYTHING IN PLACE, YOU CAN START THE BUILD! YOU WILL LIKELY FACE A FEW MORE OBSTACLES ALONG THE WAY THAT ARE UNIQUE TO YOUR PROPERTY, BUT DON’T WORRY, AS YOUR 10% CONTINGENCY BUDGET SHOULD COVER THESE ISSUES 9 RECLAIM YOUR VAT LASTLY, DON’T FORGET TO RECLAIM THE VAT ON YOUR PURCHASES MATERIALS SOURCED FOR YOUR SELF-BUILD PROJECT ARE EXEMPT FROM VAT TAX, AND COULD SAVE YOU A GOOD SUM OF MONEY AT THE END, SO DON’T FORGET TO CLAIM THIS BACK! 10 ENJOY YOUR NEW HOME! SOURCES: 4HOMES, MONEY.CO.UK, THE INDEPENDENT, THE TELEGRAPH, ONS, THISISMONEY.CO.UK FINANCIAL TIMES, THE GUARDIAN, PLANNINGPORTAL.GOV.UK

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