msi

I've found some land that has planning permission to build a house, anyone know if:

1: You can get a mortgage on the land as it is?
2: Any companies that you could recommend that specialise in this type of thing?

Ta Nick

warrenm2

yes and check the self build magazines - they'll have lots of ads and advice for people in your situation

richardg

1. yes you can and with the plg consent it is easier to value. bank shoul dbe able to give you 80% 'ish of the value of the land. ie, if you paid less than 80% of what a valuer now says it's worth, then your cashflow is positive already. you could then agree 80% (again this is an 'ish figure) LTV self-build mortgage with draw-downs based on either stages or pre-defined time periods.
2. all sorts - we use our bank. i don;t know of any other specific lenders, but do a google search on self-build mortgages and you'll find more than enough info

fast bloke

1. - Yes
2. - How much is the land and how much f a deposit do you have?

fast bloke

We usually use Halifax, HSBC or Britannia but Buildstore now have a product that runs up to 95% of the cost of the site and the build.

sti-04!!

As richardg says

msi

Thanks guys.

The land is £200k, I have approx £120k, I think the land is a bit overpriced because a builder told me as a guide it's a third, a third, a third, that is the land, the building cost and the profit and I doubt the house would be worth £600k when built but I'm viewing it over the weekend so I'll see.

fast bloke

you should have no problem with a 120k deposit.

Build cost and profit will depend on the size of house you build and the location. 33% profit is maybe a bit keen, but 20%-25% seems about normal in NI. (Basing this on mortgages arranged v's final lender valuations)

scoobydooooo

yes , a mortgage is no problem , my brother and i bought a car park with palnning for a 3 bedroom house and got a loan no problem especially with your deposit .

chris's scooby

You shouldn't be using someone elses deposit...

The third/third/third rule seems to be a little dated now. It will depend on where you are in the country but here in our part of East Sussex you can be looking at anything over 20% as being acceptable as the profit part.

If you were to go for a build using timber frames you could save a fair bit of cash.

unclebuck

Not any more. Maybe two years ago. It really depends on where in the country it is. Most self builds now will break even and no more. Depending on the house spec and the location you can actually end up spending more than if you simply bought an existing house.

I'm hoping that when the recession hits plot prices will drop back to sensible levels again.

Bluie

Worth a look

http://www.buildstore.co.uk/

http://www.ebuild.co.uk/

richardg

1/3, 1/3, 1/3 is a guide - it never works out at exactly that. what he's told you is what your average developer/surveyor would tell you as a rough guide when you're looking into things. obviously some houses are more expensive to build that others (ie, timber/masonry/steel/concrete; 1/2/3/4+ floors; basement etc etc). in reality, if the land is 25-30% 'ish of the value of the completed house, the remaining 70-75% will account for construction cost, fees, finance costs, marketing, services, project management costs/fees, surveyors fees and then 'profit'. if it's a self-build, then the theory from a housebuilder is that the self-builder can 'afford' to pay more for the land as they won't be incurring some of these costs (ie marketing costs, agents fees and of course "profit"). HTH