Things to consider before building your own home
Exactly where would you consider living
This might sound odd, but the closer that you can narrow down your search for a plot or property, the more likely it is that you will find an opportunity sooner. Try to have a mini list of desired locations in order of preference and consider what is important to you and your household such as access to transport, doctors, schools, affordability and so on.
The length of time it will take to complete the project
Typically it can take 6 months or more to find a plot, up to 8 weeks to achieve planning permission for developments between 1 and 9 homes, 13 weeks for developments over 10 homes, and depending on your build method and financial position, anywhere between 4 months or more to construct.
Finding out how much you can realistically afford and setting a full budget
This is not easy to calculate if you have not engaged in a project of this type before. A number of self build support organisations have produced tools to help you set a budget and a useful summary of some of the budget headings you will need can be found on the Self Build Portal. It is useful at this stage to consider how you will finance each stage of the project. Traditionally, self build mortgage finance in the UK is paid in set instalments following the completion of the following stages:
- The purchase of land
- Completion of the footings and foundations
- Erection of the walls and roof to make the building water tight (commonly referred to as the shell of the building)
- Full completion and fit out.
There are mortgage products available that offer advance payments. These two types of mortgage are usually referred to as either an ‘arrears based mortgage’ or an ‘advanced stage payment’ mortgage. There are also bridging loan finance products that can assist with cash flow.