Current climate for Self-builds?

SwordofLight

Hi Everyone,

I'm toying with the idea of a self-build. I'm a first time buyer and worked in the building industry years ago so reckon I could handle a build project with guidance from an engineer or architect. I've also seen the Help To Buy scheme running. Would love to someday own my own home.

So I'm looking at this as the process
1. Identify a site eligible for planning.
2. Consult the planning authority to confirm eligibility.
3. Hire an architect or engineer to create a design for a house including costs.
4. Pay the architect for the plans.
5. Lodge the planning application prior to bidding on the site.
6. If successful, put total costs together and apply for mortgage.
7. If successful, have mortgage instalment 1 drawn down to account.
8. Bid on site.
9. If successful, begin building.
10. Apply for HTB scheme rebate.
11. Have architect or engineer visit site every month to ensure build is accurate to plans, and to sign off for next instalment.

Someone please tell me I am wrong! It would be a massive risk to pay for plans and planning before owning a site wouldn't it? And is an engineer cheaper than an architect? And am I allowed to be the builder of the site once it is signed off by someone registered like the architect? Could I register for VAT and reclaim the vat on building costs?

Any advise very welcome!!!!!! Thank you.

BryanF

Purchase the site ‘subject to planning’ you agree price with seller, and get letter from them prior to approaching arch/planning authority.

Arch will be charge more than an engineer. But their services/expertise tend to be different

You can you ‘self-build’ ie ‘you are the builder’ but read the ‘health safety and welfare at work act / regulations. And also the building regulations/ technical guidance documents before taking this on.

Tax advice is not my area, so get this checked out by a tax consultant. As a self-builder I’m not aware of a legal way to claim tax back on builder providers materials you buy directly. But you can claim tax back on the majority of sub- contractors work, such as windows suppers/installers or timber frame etc, but you may it find it hard to get the say a block layr to fill out the tax paperwork

Car99

SwordofLight wrote: »

Hi Everyone,

I'm toying with the idea of a self-build. I'm a first time buyer and worked in the building industry years ago so reckon I could handle a build project with guidance from an engineer or architect. I've also seen the Help To Buy scheme running. Would love to someday own my own home.

So I'm looking at this as the process
1. Identify a site eligible for planning.
2. Consult the planning authority to confirm eligibility.
3. Hire an architect or engineer to create a design for a house including costs.
4. Pay the architect for the plans.
5. Lodge the planning application prior to bidding on the site.
6. If successful, put total costs together and apply for mortgage.
7. If successful, have mortgage instalment 1 drawn down to account.
8. Bid on site.
9. If successful, begin building.
10. Apply for HTB scheme rebate.
11. Have architect or engineer visit site every month to ensure build is accurate to plans, and to sign off for next instalment.

Someone please tell me I am wrong! It would be a massive risk to pay for plans and planning before owning a site wouldn't it? And is an engineer cheaper than an architect? And am I allowed to be the builder of the site once it is signed off by someone registered like the architect? Could I register for VAT and reclaim the vat on building costs?

Any advise very welcome!!!!!! Thank you.

Set up an ltd building company and register for VAT as a builder is that what you're thinking? Could it be that easy to get a vat free build?

SwordofLight

Thanks a lot for the replies.

Ha I'm sure they have ways to bust you car99! Never that simple!

BryanF of course! Subject to planning!

So, like everyone else, I'm thinking of costs - am I right the arch is the only one who can design and cost a build?
Can I buy a basic design from the arch and submit the planning applic myself?
Can I then hire an engineer to keep an eye on it and sign it off?
The build would probably take me over a year because I work full time. I'd need to sub out for a lot of bits I guess.

bfclancy

Usually first draw down of mortgage is when footings and sub floor are in, usually people would be spending their own money up to this point to buy the site, architect fees and initial costs for ground works, founds, rising walls, sub floor etc. maybe you can draw down before this stage someone else may be able to shed more light on this. conservatively you'd need at least six figures in the bank before you start thinking about it. draw downs are paid on work completed not on work to be completed!

Car99

I know when we did it in 2007 we got the mortgage amount approved, then agreed to buy the site subject to planning, planning approved and with a bridging loan from credit union paid for the site . Cleared bridging loan from the mortgage on first draw down after footings finished.
The process might be different now but that's what we agreed with the mortgage provider at the time.

SwordofLight

Must have been nerve-racking waiting for the first draw down Car99!

The phases are becoming a bit clearer now, along with the reality that I need to save up A LOT of money!

First step seems to be calculating complete costs and i'm wondering if the mortgage approval is based on the proposed build cost, proposed valuation on build finish, or the actual costs.

If an architect does up a costing and I buy the materials/ get work done cheaper/ do it myself, does the bank still give me the same money for the build etc., I would presume I return whatever is left over and the valuation is adjusted? maybe the architect can work to my budget. Still unsure as to how many architects would like to get involved in self-builds where the work is being done by the owner, aren't they taking a risk?

I'm thinking another risk is the wait time for services to be put in on site - can't this take up to a year?

Aurelian

Based on my experience the bank will require an architect/engineer to sign off on each stage of the draw down to say the works are complete. There may be a solicitor required in each stage of the draw down too. So, factor in those costs.