Self Build Advice

Navilluso

Hi, I was just wondering if you guys had any advice....
.... recently got planning for new house which we're going to self build prob by direct labour (BIL is a chippie, uncle a plumber, which helps). Through the work I do, planning was reasonably easy, but building will be all new to me. In relation to going to banks for a mortgage I was wondering if people normally have to get a quote from a contractor, direct labour prices from the various tradesmen or could we use a quote from a QS? Or does the bank just use a multiplier to tell me how much it will cost according to them...?
Thanks

Mellor

Its worth pointing out that if you are looking for a morgage from the bankman, he will most likely look for a cert of compliance. How do you suggest getting that sorted through direct labour.

smashey

There are people (Architects/Engineers etc.) who will inspect the work and issue a cert of compliance. Ask around.

Do-more

AFAIR when we were building we got a valuation off the plans from an estate agent for the bank.

ircoha

cert of compliance

Are we talking cert of compliance with PP or the building regs or re stage payments from bank?

also OP, are u happy to forgo 10 year Homebond g tee?

Mellor

I know the bank can ask for compliance with regs, not sure if they will ask for one for PP. But since they hold the money they could ask for anything.

There are people (Architects/Engineers etc.) who will inspect the work and issue a cert of compliance. Ask around

I am well aware that people will inspect the work and sign off on it. But they will have to be involved through-out the build. They can't just look at the finished house and know its up to scratch and hand out a cert. They wouldn't put their PI insurance on the line without know that the build was up to standard.

smashey

Mellor wrote:

I know the bank can ask for compliance with regs, not sure if they will ask for one for PP. But since they hold the money they could ask for anything.


I am well aware that people will inspect the work and sign off on it. But they will have to be involved through-out the build. They can't just look at the finished house and know its up to scratch and hand out a cert. They wouldn't put their PI insurance on the line without know that the build was up to standard.

I never said they would just look at the finished house. Obviously they would have a hands on job and would inspect at various stages.

Elfish

ircoha wrote:

also OP, are u happy to forgo 10 year Homebond g tee?

I would not worry in the slightest about Homebond. As far as I know, the homebond guarantee only covers you for structural defects, i.e. if your house falls down. I've worked on houses/apts that had this guarantee, noticed damp proof course going in wrong and pointed it out to the head man. He didn't care, but I bet these houses will have problems with damp round their windows.

I don't value Homebond at all. At all. It's more a marketing ploy than anything else.

sas

Elfish wrote:

I don't value Homebond at all. At all. It's more a marketing ploy than anything else.

Absolutely agree. People seem to be under the impression that they are some sort of all protecting government body. I know I certainly was. They are an insurance company and like all insurance companies the first thing they say is NO. They only thing homebond care about is Homebond.

My own personal experience with them in brief. Moved into the current house five years ago. We weren't the first owners but we were the first occupiers. We couldn't afford to decorate the sitting room for a year so it wa a while before we discovered that the chimney wouldn't draw.

Had a few crowds out to look at it and they all suggested I tackle homebond on it. So I contact them.

Homebond: "You're not the first occupier of the house so I'm afraid you're not covered".

Me: "The cover is on the house, not the occupier so thats not true"

Homebond: "Oh right yeah. Whats the problem"

Me: "I'm told my chimney is incorrectly built so I need to get it looked at"

Homebond: "We only cover structural elements of the building so you're not covered"

Me: "The chimney is a structural element of the building, I want to talk to an engineer".

Several minutes argument before she gets an engineer to ring me back. He was very impressive, took me 2 mins to talk the clown into getting someone out to look at it for me.

Few weeks later, this guy arrives with a ladder and a torch. Goes up to roof level and shines the torch down. Thats fine. Nothing wrong I'm told.

My options were now arbitration or sorting it myself.

I eventually got a small local builder to comeout and sort it for me. He opened the chimney breast in the upstairs bedroom. On the turn in the flue it was 3/4 full of mortar. I saw it myself. It was clearly visible from above so I was effectively conned by homebonds "specialist".

Upside was that the draw on the chimney is now great.

Navilluso

Thanks...

Not particularly worried about homebond, we don't intend to sell on (I agree that it's more of a marketing feature)...and SAS's story doesn't give me much more confidence in it....if you go direct labout do you automatically forgo it?

I know a reliable engineer, with PI, who would check throughout the build and they would be prepared to sign off. Again, as we intend to live in the house, I don't want someone signing off on something that they wouldn't be happy with. Obviously I'd prefer if the signing off was for all sides - building regs, planning and mortgage....should there be a difference (assuming all is done the way it should be)?

Back to original question....who will banks accept a quote from...Do-more - I didn't even think of an estate agent? I realise the bank technically wants to know how much the house is worth to them (ie sale value) but on earnings we definitely wouldn't be able to get a mortgage to buy a 2,800 sq ft house, but have a site and pp so I suppose that could be considered collateral if they decided to go that route. I assumed they would give us the money we need to build the house, not the sale value......

squire1

Navilluso wrote:

Back to original question....who will banks accept a quote from...Do-more - I didn't even think of an estate agent? I realise the bank technically wants to know how much the house is worth to them (ie sale value) but on earnings we definitely wouldn't be able to get a mortgage to buy a 2,800 sq ft house, but have a site and pp so I suppose that could be considered collateral if they decided to go that route. I assumed they would give us the money we need to build the house, not the sale value......

Yeah, the fact that you have a site will help you with the bank. You are right, the bank are only concerned with what they can sell the site/house for if you fail your repayments. In my case the bank sent out a valuer to put a value on the site and also put a value on the finished house (from plans). It might be worth your while to get some quotations from contractors to build the house. These are normally free and would be accepted by the bank as a good estimate of build cost. They would probably also include a breakdown of the stage payments. If you employ a QS they will charge you for the privilage of telling you how much it will cost to build.

Why not contact your bank and ask them, you will probably find that they are fairly helpful (at this stage).

Mellor

Navilluso wrote:

Obviously I'd prefer if the signing off was for all sides - building regs, planning and mortgage....should there be a difference (assuming all is done the way it should be)?

There is a difference, comp with regs and comp with PP are two separate documents. The bank will ask for regs, but could also ask for PP to prove its not going to cause problems with the council as they could lose "their" house.

Navilluso

Ya, I get what you mean Mellor....we're generally going to build as per the plans....although I've already seen probs with the back kitchen windows which might have to be 'moved' and will prob put in solar panels, but these are also on the back. Not intending to apply for pp for changes like that...will go the retention route if bank get really sticky. Re the QS...I also know one of them who owes me a turn...just wondering if this is when I should use it...

ircoha

Thanks for comments on Homebond.

Re PP and the banks, I know for a fact that Ulster Bank will not lend if planning is not 100%. Their mortgage loan processing has been outsourced and if all the boxes are not ticked then no money.