Question on financing, would a Builder bank roll my new build

scumfrog

Hi all,

have been reading the forum for some time and find it very useful
I'm wondering can anyone shed some light on a conundrum i am facing, i have planning permission to build a 3 bed on to the side of my existing house only problem now is i can't get finance for the build, i tried for an equity release on my current mortgage but as im on my tod and credit has tightened i was refused.

so my question is would it be possible to find a builder who would bank roll and construct the shell of the house so that i could sell my existing house to pay for the new one ? i know the property market aint exactly healthy but the house is in Dublin 9 and not many for sale in the area and would be willing to sell for a realistic price

is this a feasible plan ?

oh and another question will i have to stump up stamp duty for the new house?

Thanks in advance

Frank

Quazzie

With rent prices dropping why not sell first?

DOCARCH

I would seriously doubt any builder would be in any better position to bank roll the construction of the new house. If somebody was in a position to do this I would suugest you will pay a large premium for this!

As suggested - sell your house now (before prices fall further!) - rent and finance the new build from proceeds of sale.

AFAIK you will not need to pay stamp duty on the new house.

scumfrog

the new house will be built onto the side of the existing and existing front door and windows need to be relocated hence the need to build then sell, i could sell the house + site together which is another option, but the way the building costs are going i kinda thought a builder could build just the bare shell without breaking the bank, only 3 walls need to be built up to the roof plus i think its 9" cavity block which i guess would be cheap to build ?

DOCARCH

You could consider getting the necessary alterations done to the existing house prior to selling the existing house but prior to building the new house - this would/should include the fencing off/separation of the front and rear gardens?

I seriously don't think any builder in this current climate will take the risk of bank rolling the job even if they did have the funds - you/nobody knows how long it would take to sell the existing house.

muffler

God no! The bank wont help you but you expect a builder to step in to pull you out financially? Not a hope in hell of that happening.

No harm in trying though.

scumfrog

i don't need to be pulled out financially as you say, just exploring this as an option with a lot of tradespeople at a loose end was just wondering if they would be willing work and be payed at a later date or not, i'm sure people do a lot of work this way anyway, but then again i could be wrong, i don't expect a builder to do anything for free obviously there would be a premium paid for the arrangement

Craft25

Update your house
Build separating garden wall
sell garden property to builder (minus house) at bargain price

In fact I'll buy your garden if its cheap enuf

No6

Keep talking to the banks, some of them are lending perhaps not for development though. You could also try and sell the house off the plans!!! Get a provisional BER done and put it on the market as it stands, you have 5 years from the date of your planning permission grant to build it so if its a recent planning you can sit it out for a while, things of course could get worse!!:eek:

scumfrog

if i sold the site separate i'd get rodgered with CGT so that aint happnin,

in my opinion things will get worse, the only reason i want to sell up is i want to buy a place with my partner and its an ideal time imho

gonna keep on at the banks i probably only need 20-30k to build the shell then that would free up the other house, i was tryin to get 80k last time

Quazzie

I'd aim to have a more definite set of figures available before meeting the bank.