Out of curiousity...financing a self build

TeamLowe

I've seen an advert on rightmove for a piece of land, 4000 sq ft with planning permission granted, for a 3 bed detached house with access and parking. I've probably watched too much Grand Designs but the concept intrigued me.

How would you finance such a project? I know to get a mortgage on a house it has to have a kitchen and a bathroom so that it's 'liveable', but what about if you wanted a mortgage for the above? would you be able to get one for the cost of land + building costs, or just the land? or would you not be able to get anything?

twirlypinky

I went to a home builders show thing in Birmingham a few years ago as my ex and i were interested in doing this.

From our understanding at the time, you buy the land and borrow enough money for the first stage of the work, then you get that valued by the lender and they lend you a bit more based on that work, so you then do the frame and roof etc, and the valuer comes back round again, they'll lend you a bit more. This continues through first and second fit etc.

Times have changed since 2006/7 when i went to this show - so the system may well be different now. I remember falling in love with a design from border oak... they're still top of my list if my numbers come up.