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Self Build

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  • 15-02-2014 10:29pm
    #1
    mayoireland
    Registered Users Posts: 136 ✭✭


    Hi,

    I am planning to start to self build house with savings accumulated, getting self build insurance also. Some people advised me against as this as have been told banks wont lend to finish house, only for entire build.
    Has anyone else started house and gone to bank at later stage for loan/mortgage to finish? If so, have the banks lent the money?

    Thanks
    Tagged:


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    #2
    BryanF
    Moderators, Home & Garden Moderators Posts: 10,139 Mod ✭✭✭✭BryanF


    Yes standard practice in the past. New building control act 2014 BCA ( the actual new regulations that are being discussed in the other thread you posted in) requires a main contractor and certifier to be appointed upon submission of the commencement notice. Gone are the day of the 'traditional direct labour' build..

    if you want to ask questions on the BCA do it in the other thread. Thanks


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    #3
    galwaytt
    Registered Users Posts: 12,776 ✭✭✭✭galwaytt


    ...well I know of a site in Sligo with similar issues right now - kinda.

    Bank is lending for a self-build, but wouldn't put a cent forward until building was up & roofed and signed off by and Eng, first.

    And even then paperwork was brutal, and time to process inordinate.

    Ode To The Motorist

    “And my existence, while grotesque and incomprehensible to you, generates funds to the exchequer. You don't want to acknowledge that as truth because, deep down in places you don't talk about at the Green Party, you want me on that road, you need me on that road. We use words like freedom, enjoyment, sport and community. We use these words as the backbone of a life spent instilling those values in our families and loved ones. You use them as a punch line. I have neither the time nor the inclination to explain myself to a man who rises and sleeps under the tax revenue and the very freedom to spend it that I provide, and then questions the manner in which I provide it. I would rather you just said "thank you" and went on your way. Otherwise I suggest you pick up a bus pass and get the ********* ********* off the road” 



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    #4
    tonwal31
    Registered Users Posts: 2 ✭tonwal31


    <snip>

    Mod: Advertising posts are not allowed. Please read the forum charter before posting again.


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    #5
    declan52
    Registered Users Posts: 72 ✭✭declan52


    I did mine this way but Ulster bank were only one who would give me a mortgage. Loads of hoops to jump through and I mean loads over 4 months of forms and forms to be filled in. If I was to do it again I would def have the finance sorted first. Might have got a better deal with other banks.


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    #6
    tonwal31
    Registered Users Posts: 2 ✭tonwal31


    Declan52 - sorry to hear that, had a similar experience, all I can say looking back that type of insurance contract gives the lender security that your (their) asset is adequately protected should something occur, I had an incident where someone broke in a stole tools and materials. Think going forward all lenders will request these warranty insurance contracts to ensure all involved are working to regs etc. and the final result is not jeopardised and some recourse for the purchaser.


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    #7
    declan52
    Registered Users Posts: 72 ✭✭declan52


    tonwal31 wrote: »
    Declan52 - sorry to hear that, had a similar experience, all I can say looking back that type of insurance contract gives the lender security that your (their) asset is adequately protected should something occur, I had an incident where someone broke in a stole tools and materials. Think going forward all lenders will request these warranty insurance contracts to ensure all involved are working to regs etc. and the final result is not jeopardised and some recourse for the purchaser.

    Had insurance already but it was just constantly asking questions going through my bank statements about what I had spent money on. Large amounts for materials wages etc all queried. I think its just the banks being extremely cautious to who they lend to. You have to meet all the criteria or you get no money.
    One bank put all my details into their calculator and it come up on the screen refusal. Advisor said sorry the computer says no. Nearly pissed myself.


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    #8
    fin78
    Registered Users Posts: 4 ✭fin78


    Hi, I need some advice..

    I have been approved mortgage of €140,000. I am purchasing and old house which I am going to renovate. The house has been valued at €55,000 but the owner is selling it to me for €25,000. The cost of my renovations will cost me €100,000 approx. plumbing, wiring and building work.. What way will I have to draw down the mortgage. Am hoping €120,000 will buy and completely finish the house / furnish. When house is finished it will prob be worth in the region of €170,000 much more than. Will I get the full amount from bank or how much deposit will have toput towards it. Would me Equity / input deposit be €30,000 ?

    Please advise...


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    #9
    ryan101
    Closed Accounts Posts: 1,671 ✭✭✭ryan101


    In the likes of mayo you can definitely buy cheaper than you can build at the moment.


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    #10
    galwaytt
    Registered Users Posts: 12,776 ✭✭✭✭galwaytt


    fin78 wrote: »
    Hi, I need some advice..

    I have been approved mortgage of €140,000. I am purchasing and old house which I am going to renovate. The house has been valued at €55,000 but the owner is selling it to me for €25,000. The cost of my renovations will cost me €100,000 approx. plumbing, wiring and building work.. What way will I have to draw down the mortgage. Am hoping €120,000 will buy and completely finish the house / furnish. When house is finished it will prob be worth in the region of €170,000 much more than. Will I get the full amount from bank or how much deposit will have toput towards it. Would me Equity / input deposit be €30,000 ?

    Please advise...


    It is extremely unlikely the Bank will allow you draw down the full amount at this early stage.

    I would suspect, given that you are buying the property for such a low price, that you would be expected to pay for this in full yourself before you get access to any of the mortgage - it does come in at less than the deposit you'd have to put down normally.

    Once bought and in your name, and with contractors in place, I suspect you could draw down agreed amounts based on signed-off valuations by your assigned Certifier on a rolling basis.

    Either way, I think it will be a slow process.

    Ode To The Motorist

    “And my existence, while grotesque and incomprehensible to you, generates funds to the exchequer. You don't want to acknowledge that as truth because, deep down in places you don't talk about at the Green Party, you want me on that road, you need me on that road. We use words like freedom, enjoyment, sport and community. We use these words as the backbone of a life spent instilling those values in our families and loved ones. You use them as a punch line. I have neither the time nor the inclination to explain myself to a man who rises and sleeps under the tax revenue and the very freedom to spend it that I provide, and then questions the manner in which I provide it. I would rather you just said "thank you" and went on your way. Otherwise I suggest you pick up a bus pass and get the ********* ********* off the road” 



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