Like most of the population, the thought of buying a brand new home is everyone’s dream.
Depending where you live, most modest new builds start at £300,000 and then theirs your problem straight away.
I have done some in depth reserch that so called self builders made around 15,000 homes last year. This is expected to increase as the launch of the Governments’s Right to Build created in 2016, which means councils must relinquish land for residents or groups of locals to build on land within three years.
Experts say that a self build when completed is worth around 25% more than the cost of the build.
Some self builders typically sell their homes to fund this type of project from the sale of their old property however some banks are offering self build mortgages. Lenders including Halifax offer self build mortgages at 3.99 percent to 5.24 percent and a mortgage term of 25 years.
When you receive the loan, this will be in four or five phases rather than a lump sum, then after the build is complete the lender should let you go on to a traditional mortgage.
The other option is to take our a short-term bridging loan that is secured against the property. You do not make monthly payments as the interests are rolled up and repaid when you sell the house however this is an expensive option as interest rates are high and there is a risk if you can not sell your home at the price you need.
This can be the hard part however their are online platforms such as Plotfinder.net that have a collectively list of thousands of building plots and it is free to sign up.
Also don’t forget to add your name to your local authority’s Right to Build register.
Have a think and a walk around the area you would like to have your self build, maybe you might come across a strip of someones garden at the side of their house or maybe there is small waste land that is overgrown that could be of use. It always worth contacting the owner even through a note in the door leaving your contact details.
Flat-Pack Kit Homes
There are self build companies that offer a complete service from design, planning application to the property to be erected and complete otherwise known as a full turnkey service.
Normally a new build made out of bricks and mater would take around six months to build but one of these kit homes only takes ten days.
Some of these companies have showrooms where you can view the properties and you can get a feel on how your new build would look like. There is one company offering a modern three bedroom contemporary home fully complete under £100,000.
Buying a flat-pack home will only get much more popular, its certainly worth investigating.