How much of the costs does a self build mortgage generally cover?

batman1

Would like to look in to a self build at some stage in the near future.

Currently live in a house bought from a developer but would like to move on to bigger things.

However, all the info regarding costs for this and that can get overwhelming.

I am wondering if anyone can give an idea of what costs can be covered as part of a self-build mortgage. For example, site purchase costs, any/all professional fees including arch/solicitor/council etc etc. Do banks allow for such costs?

Say if one were to look to build an 1800 sq ft 4 bed house to modern standards (solar panels, good insulation etc), at say €80?/sq ft (north west Ireland) and a site purchase of 25k, would a mortgage of 180k cover it, allowing for reasonable finishing?

A friend got an 1800sqft built to builders finish (plastered) for €60/sqft last year.

We're at the very beginning of researching this whole area of self building.

Galwayguy35

batman1 wrote: »

Would like to look in to a self build at some stage in the near future.

Currently live in a house bought from a developer but would like to move on to bigger things.

However, all the info regarding costs for this and that can get overwhelming.

I am wondering if anyone can give an idea of what costs can be covered as part of a self-build mortgage. For example, site purchase costs, any/all professional fees including arch/solicitor/council etc etc. Do banks allow for such costs?

Say if one were to look to build an 1800 sq ft 4 bed house to modern standards (solar panels, good insulation etc), at say €80?/sq ft (north west Ireland) and a site purchase of 25k, would a mortgage of 180k cover it, allowing for reasonable finishing?

A friend got an 1800sqft built to builders finish (plastered) for €60/sqft last year.

We're at the very beginning of researching this whole area of self building.

I had my own site and agreed a price with the builder to finish it out to the moving in stage. Was living in a 1600 sq ft house for 200 k, now this was 4 years ago so you should get a lot done for 180 k.

muffler

NW Ireland is probably one of the less expensive areas to build so you're off to a good start.

I have seen houses built to "builders finish" for €70/sq. foot but the renewables would not be included in this. You may be out extra for ground works/landscaping, sewage treatment system, water supply etc etc. If you can afford it I would suggest you stick with a figure of around €100/ft2 and see if you can get a mortgage for this amount.

Most lenders will allow for the final stage payment not to be drawn so effectively if you think you need €180k try to get €200k and if you end up not needing the extra 20k then you dont have to take it and there is no penalty incurred. Check this out in advance though.

The various institutions all have their own criteria for mortgages but generally they will look to see savings amounting to around 20& -40% of the mortgage amount.

Again most of them will include the cost of buying the site in the mortgage or at least a good percentage of the cost but I cant really see you getting much of a site for 25k though.

Development contributions payable to the Co. Council can be checked out on their web sites or a quick phone call to the local planning office will get you an answer.

Expect to pay solicitors around 4 k, architect/engineers/project managers/site assessors, QS etc fees could run anything up to 10 - 15 thousand and these fees can be included in the mortgage. A straight forward ESB connection is around 1800.

There are loads of threads here in this forum and also inn the main construction & planning forum so have a root around and you will get some good tips.