The answers you need before starting your self-build project!

Before building your own home there can be many questions you want to be answered, we have compiled a list of some of the most commonly asked questions to give you a quick guide to look over. This is one of many blog posts on our website regarding self build properties– find more under insights, they are a great place to learn more about your learn more about your self-build options options.

How much will a self-build project cost?

Commonly asked questions before starting a self-build projectBefore setting out on a self-build project you need to assess your finances and ensure you can afford the project- this is where we can help! As mortgage advisors, we can ensure we provide you with the best options and ensure you are aware of your maximum budget and how to stay within this. For each self-build, they are specific to your requirements and there is no one set price for all. It will entirely depend on the materials you decide to use if you have external contractors and the time scale in which the project takes.

Setting a budget is crucial, but always allowing for additional costs to occur and having room to accommodate this within your budget, when building your own home there is often a few unforeseen costs, as any home purchase can have, so being prepared ensures you are left able to cover all the costs and get the home you want.

There are ways to keep the costs down. These include taking on some of the building works yourself- cutting down additional contractor costs by doing this you’ll learn lots of useful skills to carry with you to the next property or if any issues were to arise around the house in the future.  Unfortunately, there is no clear-cut answer to the total cost of a self-build, there are so many factors that will impact this.

The lender will expect the self-build mortgage to be affordable with a contractor doing the full job.

 

Help to Build scheme

The government have also recently announced the new help to build scheme enabling a wider range of people who can build their dream home. We have an entire blog post breaking down the scheme and explaining how you can use this to help you build your dream…. it’s never been easier.

 

Factors that affect the cost of a self-build project

Commonly asked questions before starting a self-build projectSeveral different factors affect the cost of a self-build project. Three of the biggest contributing factors to the initial costs are the size of the build, the design and complexity of the home and the location.

When deciding on your home the size of course will impact the cost. If you are planning to build a modest 3 bedroom home the cost of materials, labour, hours spent on it will, of course, be reduced whereas if you are building a six-bedroom with a much larger floor plan then the cost of materials alone will be greater.  This is where having an experienced mortgage advisor onside to support you and set a clear budget, will allow you to know what you can afford to create.

When designing your dream home, you want it to be just that all you have dreamed of. This can mean the complexity of the build and the design is unique and in turn, can be costly. If it is the dream, then being aware it may come at a cost and to factor in unique features will be more costly.

The location of your build also has an impact. An example of how the cost may be affected by the location is the ease with which items can be delivered to the site, if the site is in a remote location, it can be tricky to get to the site and lead to specialist equipment being required. If the location also needs further landscaping this is a cost to factor in adding foundations, levelling the ground and if the land is in a popular location, then the cost of land will be at a higher premium.

Do I have to pay stamp duty on a self-build project?

Wondering if you have to pay stamp duty on a self-build property? Great news You only pay stamp duty on the price of the plot of land not on the finished house price. This can mean you are paying a fraction of the price and cutting down the bill dramatically. Stamp duty is an expense to consider and factor into the purchase price of the land and your overall budget.

 

How long does a self-build project take?

Commonly asked questions before starting a self-build projectWith self-build projects, like any home purchase, each is unique, and each process time scale will differ.  It can take 6 months to 2 years, to longer depending on all of the factors previously mentioned. Having an idea of timescales and when things need to be completed is important and can show you if further work or money is needed to ensure deadlines are being met. If you are using contractors, make sure they know the deadlines and ensure they are keeping to the schedule previously discussed. As a small mortgage company, we work tirelessly to ensure we can aid along with timescales and ensure we are on top of every client’s case to ensure deadlines are met.

 

How do I find land for sale?

Commonly asked questions before starting a self-build projectWhen looking for land to purchase there are a few different options, you can always find land through estate agents. You can contact them and often go on newsletters to be the first to hear about any upcoming and new plots to purchase. This can be beneficial in popular locations and up and coming areas. Additionally, there are specific websites, like Right move but for plots of land that can make it much simpler for you to search. When searching for a property being aware of the area and the market will enable you to be ready when land becomes available.

 

The advantages of a self-build home

There are many advantages to building your own home from the ground up. If you are building the house, you can build the home you dream of- knowing your requirements and being able to add them to the house is perfect for you and the life you lead. You can create all you want in one house in the ideal location- In a competitive housing market, this is rare to achieve for many. You won’t have to compromise and can have all your wants in one perfectly designed package.

By building the house and being so involved you are likely to be able to pick up several skills too and this can spark a passion in you for a future project or enable you to help others! A win-win!

There are so many positives of building your own home- you are building your dream home and that is an incredible experience, are you sold on a self-build yet?

Commonly asked questions before starting a self-build project

Before embarking on a self-build journey, you have to consider and carry out extensive research, but there is a lot of support from those who are experts within these areas.

If you are ready to find out more before setting off on your self-build journey or need help as you get started contact us on 01225 962456.

 

We also have several other blog posts packed full of useful information for potential self-builders- Find more under insights on our website.

 

Commonly asked questions before starting a self-build project

 

Published on 24th February 2022