Build Your Own House

BUILD YOUR OWN HOUSE HAVE YOU EVER THOUGHT ABOUT BUILDING YOUR OWN DREAM PROPERTY? HERE'S WHAT YOU'LL NEED TO CONSIDER BEFORE EMBARKING ON A SELF-BUILD PROJECT AROUND 12,000 SELF-BUILD HOMES ARE COMPLETED EACH YEAR IN THE UK £242,000 E150,000 AVERAGE HOUSE PRICE IN MIN. YOU WOULD NEED TO BUILD THE UK (JUNE 2013) A 3-4 BEDROOM HOUSE SOLD E182,000 AVERAGE COST OF A 1ST UP 25% ADDED VALUE OF YOUR COMPLETED TIME BUYER'S HOME TO HOME ON THE OPEN MARKET STEPS TO BUILDING YOUR OWN HOME SECURING A MORTGAGE MONEY IS USUALLY RELEASED IN YOU WILL LIKELY NEED A 25% 5-7 STAGES, AND YOUR LENDER HIGHER DEPOSIT FOR A MAY ALSO ARRANGE INSPECTIONS DEPOSIT SELF-BUILD MORTGAGE, IN BETWEEN PAYMENTS 75% OFTEN AT LEAST 25% OF THE TOTAL COST MORTGAGE THIS MAKES SELF-BUILD MORTGAGES MORE EXPENSIVE, BUT THINK ABOUT THINK ABOUT INCLUDING 10% REMORTGAGING AFTER YOUR HOME IS A 10% EMERGENCY FUND IN YOUR BUDGET CONTINGENCY COMPLETE TO GET A BETTER DEAL FINDING LAND PLOTS CAN SOMETIMES BE DIFFICULT TO FIND, BUT IT'S WORTH DOING THIS BEFORE DESIGNING THE LAYOUT OF YOUR HOME CAN'T FIND A PLOT? CONSIDER KNOCKING DOWN AN OLD PROPERTY AND STARTING AGAIN IF YOU DO FIND A PLOT YOU LIKE, CHECK THAT THE LAND ISN'T: IN A FLOOD PLAIN UNDER A FLIGHT PATH CLOSE TO A RAIL LINE NEAR A BUSY ROAD CLOSE TO OTHER PLANNED DEVELOPMENTS BEFORE BUYING A PLOT, CONSIDER GETTING YOUR PLANNING PERMISSION APPROVED FIRST STAMP DUTY LAND TAX (SDLT) FOR SELF-BUILD PROPERTIES, SDLT IS ONLY APPLICABLE ON THE COST OF THE LAND FREE FOR UP TO £125,000! AND NOT THE VALUE OF THE COMPLETED HOUSE LAND COST SDLT RATE LAND COST SDLT RATE UP TO E125,000 ZERO% E250,001 - ES00,000 E125,001 - £250,000 ES00,001 - E1,000,000 1% 4% YOUR FLOOR PLAN START DESIGNING THE LAYOUT OF YOUR PERFECT HOME HOW MANY BEDROOMS? BATHROOMS? ENSUITE? TRY TO BE SPECIFIC IN YOUR DESIGNS, BUT FLEXIBLE IN HOW THEY ARE IMPLEMENTED TO HELP KEEP YOUR COSTS DOWN AND WITHIN BUDGET PLANNING PERMISSION THERE ARE TWO DIFFERENT TYPES OF APPLICATIONS: THIS CHECKS WHETHER YOUR THIS IS A DETAILED APPLICATION PROPOSED PROPERTY WOULD BE FOR YOUR PROPERTY WHICH OUTLINE YOU WILL NEED TO HAVE FULL/DETAILED ACCEPTABLE TO YOUR LOCAL PLANNING PLANNING AUTHORITY, AND IS USUALLY VALID APPROVED BEFORE ANY PERMISSION PERMISSION FOR 3 YEARS BUILDING WORK CAN START THE COST OF BOTH APPLICATIONS VARY DEPENDING ON YOUR LOCATION, BUT IS IN THE REGION OF £320 - £385 NOTE: PLANNING PERMISSION IS A KEY STEP IN YOUR SELF-BUILD, BUT IT IS NOT ALWAYS STRAIGHTFORWARD - THERE ARE NO GUARANTEES THAT YOUR PLANS WILL BE APPROVED AND THE APPLICATION CAN SOMETIMES BE TIME CONSUMING ARCHITECT OR KIT HOUSE? "I WILL HELPYOU TO STAY COMPLIANT WITH BUILDING REGULATIONS, TELL YOU WHAT'S AFFORDABLE FOR YOUR BUDGET, AND ADD IN UNIQUE CHARACTERISTICS TO YOUR BUILD. IFYOU LIKE, I CAN ALSO HELPYOU WITH APPLYING FOR PLANNING PERMISSION AND MANAGE THE ENTIRE PROJECT FOR YOU FROM START TO FINISH." "I'M ALSO KNOWN AS A PREFABRICATED HOUSE - IF YOU'RE NOT CONCERNED ABOUT HAVING UNIQUE ARCHITECTURAL FEATURES TO YOUR HOME, I WILL HELPYOU TO KEEP YOUR COSTS DOWN. ALTHOUGH I MAY BE LIMITED ON DESIGN, I'M QUICK TO CONSTRUCT AND YOU WON'T NEED AN ARCHITECT - JUST THINK OF ME LIKE A FLAT PACK HOME." FINDING YOUR TEAM CHOOSEYOUR TRADESMEN CAREFULLY! ASK FOR THE PRICE OF THE WHOLE JOB BUT NEVER PAY THE FULL AMOUNT UP FRONT - PAY IN INSTALMENTS TO MAKE SURE YOU'RE HAPPY WITH THE BUILD THE CHEAPEST QUOTE MIGHT NOT BE THE BEST - CHECK REVIEWS & RECOMMENDATIONS COULD YOU TAKE ON SOME OF THE TASKS YOURSELF, SUCH AS YOU COULD SAVE MONEY BY SOURCING MATERIALS YOURSELF - YOUR BUILDER MIGHT BE TIED TO A STORE BUTYOU CAN SHOP AROUND FOR THE BEST DEAL PLASTERING, PAINTING AND DECORATING? INSURANCE YOU MAY NEED TO TAKE OUT SPECIALISED INSURANCE TO PROTECT ANYONE WORKING ON YOUR BUILDING SITE - SPEAK TO AN INDEPENDENT FINANCIAL ADVISOR OR AN INSURANCE BROKER ABOUT THIS START THE BUILD NOW THAT YOU HAVE EVERYTHING IN PLACE, YOU CAN START THE BUILD! YOU WILL LIKELY FACE A FEW MORE OBSTACLES ALONG THE WAY THAT ARE UNIQUE TO YOUR PROPERTY, BUT DON'T WORRY, AS YOUR 10% CONTINGENCY BUDGET SHOULD COVER THESE ISSUES RECLAIM YOUR VAT RECEIPT RICKS £1850 00 RECEIPT PET E S6 00 LASTLY, DON'T FORGET TO RECLAIM THE VAT ON YOUR PURCHASES ( E PAINT (S00 E 415 20 MATERIALS SOURCED FOR YOUR SELF-BUILD PROJECT ARE EXEMPT FROM VAT TAX, AND COULD £2,076 SAVE YOU A GOOD SUM OF MONEY AT THE END, SO DON'T FORGET TO CLAIM THIS BACK! TOTAL £ 350.00 10 ENJOY YOUR NEW HOME! gocompare .com SOURCES: 4HOMES, MONEY.CO.UK, THE INDEPENDENT, THE TELEGRAPH, ONS, THISISMONEY.CO.UK FINANCIAL TIMESS, THE GUARDIAN, PLANNINGPORTAL.GOV.UK I. CO