Perfect financial planning
Have you found the perfect barn that's ripe for conversion? Are you hoping to knock down your existing property and rebuild your dream home? Or are you planning to renovate or extend your house? Whatever you have in mind, it's easy to get carried away with the excitement of it all, but before you rush head-on into your new project, there are a few things you should consider to make sure you're as financially prepared as possible.
First, if you're planning to buy a plot of land or a conversion opportunity, does it have detailed planning or outline planning? I strongly advise not to purchase it unless the appropriate planning permission has been granted, particularly as residential funding will not be available unless you have the minimum of outline planning permission. If you wish to purchase a property with a view to renovating and extending, it's a good idea to consult with the local planning authority or a planning consultant before you commit to buying anything in order to see whether they think the work you have in mind will be allowed. You should also ensure that you have access rights and that your site is not land locked. If it is land locked you may well have to negotiate to purchase adjoining land (what is commonly known as the ‘ransom strip') to gain access, which is generally a costly exercise.
Not only do you have to consider the purchase price of the plot or property, you also need to ascertain at an early stage your anticipated build costs. You must demonstrate to the lender that you will have sufficient funding in place to complete the build project (mortgage facility plus own cash contribution). It is also very important for you to identify at this early stage the type of materials that you wish to build your new home with. Some lending institutions will lend on certain materials but not on others, so make sure you check with them as to what will be possible. You should also ensure that the build materials have the necessary accreditations.
Finally, have you considered where are you are going to live during the project? Will you live in your current home, rented accommodation, with family or friends or even in a caravan on site? The answer to this question is very important! Why? Basically, where you choose to live may have an impact on the level of borrowing you may be offered from a bank or building society, as all of your financial commitments will be taken into consideration.
Did someone guide you through the maze of information at the start of your project, or did you jump in too quickly? Let theselfbuilder.com know about your experiences.
And if you're now ready to discuss funding options for your build, contact Mary Riley
Mary Riley Solutions
07808 094 014