Applying for Mortgage on New Build

fitzparker

Hi Guys,
(Hopefully the correct forum)

I am a first time buyer and looking to get a small mortgage to build a property out of my parents back Garden, it is only a small 1 story house 2 bedrooms.

My query is the build is only 40k( for the shell) then for everything else ( sewage,elec,plumbing etc) is 20k.

what way is the Mortgage offered do you just get the loan to build the property or for sewage,electrical points etc...

thanks
Scott.

Calhoun

After recently going through this process let me tell you that unless you have the land in the back garden assigned over to you then it will be very hard to get a mortgage.

Assuming you have this sorted and the land gets trasnferred into your nam the next issue is access. The banks are reluctant to loan for a new build if it doesnt have independant acess as it will impact future sales.

Third item of concern is the planning permission you will this before the bank will even consider lending anything. Along with the planning you will need to have architectual plans ect detailing the build.

If you have all of that in place and depending on if you have a deposit built up the bank will ask for a independant valuer to do a value of the land and to confirm anything in their requirement meets their needs, they will also look for the certified builder and his costings to ensure it can be built for the value of the mortgage. Once all is above board they can lend you most of it i believe depending on how the deposit is handled.

They will hold 10% back until the house is liveable.

Took us around 2-3 months to sort everythng out and we went for 75% of the value of the house as it was something we felt would be achieveable on my income, the bank will do allot of homework on assessing what will happen in the future if they need to resell this asset so keep that in mind.

Jeff Le bowski

With new building regs that were brought in last March you can forget building something like that unless you have very deep pockets,you need to get the builders work certified at different stages which could cost as much as they want to charge you.

I was also interested in building to shell,get it plumbed etc and finish it myself but since they brought this in it's financially not possible.

These changes will affect you as follows , from that date

When works start you must send to your local authority in standard formats set down by regulations

1 . A Commencement Notice signed by you ( not your agent as may be the case now ) stating when works will start and including all drawings , specifications and calculations to show how you will comply with building regulations.

2 A Certificate of Compliance ( Design ) signed by your Architect , Engineer or Surveyor* to confirm that the building is designed in accordance with building regulations

3. A Notice of Assignment of Person to Inspect and Certify works signed by your Architect , Engineer or Surveyor* ( who may differ from the person at 2 )

4. Undertaking by Assigned Certifier – the person at 3 confirms your appointment of them

5. Notice of Assignment of Builder . You confirm you have appointed a competent builder ! Self build / direct labour posters note this one !

6. Undertaking by Builder . The builder confirms your appointment of him . He confirms he is competent and that he knows and will build to regs. Self build / direct labour posters note this one too !


At completion of the works and – note carefully – before the house is occupied or used the following must be submitted to the local authority

8. Certificate of Compliance on Completion as completed by the person at 3 above

10. As built drawings specifications and calculations

11. The Inspection Plan as implemented by the person at 3 above.

The days of building off planning permission drawings and "do I really need an Architect/Engineer/Surveyor?" are gone unfortunately

REFLINE1

Jeff Le bowski wrote: »

With new building regs that were brought in last March you can forget building something like that unless you have very deep pockets,you need to get the builders work certified at different stages which could cost as much as they want to charge you.

I was also interested in building to shell,get it plumbed etc and finish it myself but since they brought this in it's financially not possible.

These changes will affect you as follows , from that date

When works start you must send to your local authority in standard formats set down by regulations

1 . A Commencement Notice signed by you ( not your agent as may be the case now ) stating when works will start and including all drawings , specifications and calculations to show how you will comply with building regulations.

2 A Certificate of Compliance ( Design ) signed by your Architect , Engineer or Surveyor* to confirm that the building is designed in accordance with building regulations

3. A Notice of Assignment of Person to Inspect and Certify works signed by your Architect , Engineer or Surveyor* ( who may differ from the person at 2 )

4. Undertaking by Assigned Certifier – the person at 3 confirms your appointment of them

5. Notice of Assignment of Builder . You confirm you have appointed a competent builder ! Self build / direct labour posters note this one !

6. Undertaking by Builder . The builder confirms your appointment of him . He confirms he is competent and that he knows and will build to regs. Self build / direct labour posters note this one too !


At completion of the works and – note carefully – before the house is occupied or used the following must be submitted to the local authority

8. Certificate of Compliance on Completion as completed by the person at 3 above

10. As built drawings specifications and calculations

11. The Inspection Plan as implemented by the person at 3 above.

The days of building off planning permission drawings and "do I really need an Architect/Engineer/Surveyor?" are gone unfortunately

The're doing a U-turn on assigned certifier for this type of development.

http://www.independent.ie/business/personal-finance/property-mortgages/radical-plan-to-exempt-new-homes-from-building-rules-31192849.html

Calhoun

U-turn or not it may not satisfy the bank on access issues and land ownership. If they cant resale an asset easily they will have zero interest in it.

REFLINE1

Calhoun wrote: »

U-turn or not it may not satisfy the bank on access issues and land ownership. If they cant resale an asset easily they will have zero interest in it.

Correct, i was obviously only referring to the Assigned certifier aspect mentioned.

Ri_Nollaig

do you have planning permission?

And while they are probably going to make a U-turn on the building regs from last year, they haven't yet. So until then, you will have to assume you will need to follow them or wait till its changed.