A lot of people dream of the perfect home – so what if you could build your perfect home from scratch and make your dream a reality? A great way to get on the property ladder, the idea of self-building your perfect house does not have to remain as an idea.
According to the National Self Build Association there are 6 million people in the UK who would like to build their own home but only 1 million have started the planning process. Why is this? Read on to find out about how to build your own house.
There are a number of ways to become a self-builder, it just depends in how involved in the process you want to be; you could manage the whole design and construction process or just join a community project. Realistically the route you take depends on the time and money which you have.
Find a plot
The first step for any self-build project is finding a suitable plot of land; and it’s harder than it sounds. You need to ensure that you have the correct planning permissions and are considering all the rules and regulations when it comes to building property.
You can check websites such as Rightmove, self-build portal or speak to your local estate agents to source plots of land that are currently up for sale. If you are embarking on a community project or a group scheme the land and planning permission is likely to already be sorted.
You can go to your bank or local building society to talk to an advisor about self-build mortgages. It is important to be aware that not all banks will offer a self-build mortgage; but there are deals available from certain lenders if you shop around.
Self-build mortgages work differently to residential mortgages; the funds you receive are released in stages so that you will not run out of money half way through your self-build project. Because of this lenders will want to see all of the detailed plans for the projects including projection of costs and planning permission details.
Site insurance is fundamental for a self-build project. You need comprehensive protection for both the building and the rest of the site.
Protecting your site against fire, floor, storm damage and accident damage is important; and more often than not standard building insurance will not pay out on a loss involving a property under development.
What does it cost?
According to a report carried out by Lloyds Banking Group, the average self-build project (including land) costs £255,543.
Although this is higher than the average house price of £169,000 if you were to buy a residential property for more than £250,000 then you would have to pay stamp duty. With self-build stamp duty is only applicable on the land, which starts on values over £125,000.
There are other costs to bear in mind too – i.e. insurance, legal, somewhere to live whilst it’s being built as well as the furniture and fixtures.
Reference: This is Money
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