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Self build site purchase

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  • 04-09-2013 8:18pm
    #1
    Oliviaqc
    Registered Users Posts: 4 ✭


    We are hoping to purchase a site which currently has full planning permission but we do not want to build for a number of years. I am wondering does anyone know of any lender who gives a mortgage for site only? We have almost our existing home paid for ( initially term 20 years and will be paid in 10) but our current lender will still not give a mortgage or even equity release to purchase the site.


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    #2
    Trish56
    Registered Users Posts: 1,256 ✭✭✭Trish56


    If your own bank refuses to consider an equity release you need to consider remortgaging with another lender.. this of course will depend on the current loan to value of your property.


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    #3
    D3PO
    Registered Users Posts: 7,879 ✭✭✭D3PO


    no bank will give you a mortgage based on what you have said.

    the site is valued based on it having PP. If your not planning on building for years that PP will likely expire therefore the lands value decreases as there is no guarantee you will get PP again in future.

    You also fail to mention if you have a deposit to put against the purchase Im getting the feeling you haven't so again why would the bank lend you 100% of the purchase price.


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    #4
    Oliviaqc
    Registered Users Posts: 4 ✭Oliviaqc


    Thanks for your replies.

    We do have the necessary savings to cover a deposit for the site and we are only hoping to hold off building for two years so the planning would not lapse and as far as I am aware if you put down the foundations that is enough to hold the planning. They are adament the reason is that they don't lend for site only and I just cannot understand that considering we can use our existing home as collateral. The branch said considering our history it probably would not be an issue but they would have to consult there credit department and they in turn rejected the application.


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    #5
    D3PO
    Registered Users Posts: 7,879 ✭✭✭D3PO


    Oliviaqc wrote: »
    Thanks for your replies.

    We do have the necessary savings to cover a deposit for the site and we are only hoping to hold off building for two years so the planning would not lapse and as far as I am aware if you put down the foundations that is enough to hold the planning. They are adament the reason is that they don't lend for site only and I just cannot understand that considering we can use our existing home as collateral. The branch said considering our history it probably would not be an issue but they would have to consult there credit department and they in turn rejected the application.

    why not just get a self build mortgage now and start the work ? kill two birds with the one stone so to speak.


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    #6
    Oliviaqc
    Registered Users Posts: 4 ✭Oliviaqc


    Thanks for your reply. We have 28k left to pay on our current home which is a 3 bed semi so I cant see how the ltv would be an issue thanks for the advice.


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    #7
    Oliviaqc
    Registered Users Posts: 4 ✭Oliviaqc


    My husband is working on a contract basis at the moment and my income will not cover the full self build and site mortgage value. It would cover approx 3/4 so unfortunately that isn't an option at present. They wont consider his income as it is not a permanent role. That is why we wanted wait the year or two.


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