Buying Plot For Self Build B4 Our House Sold

mirage

Hi Everyone

Very much in need of help and advice. We have a house with a lot of equity (about £400K). We really want to buy a plot of land to build a much smaller dream home. Does anyone know how we could raise enough money to buy a plot without having to get another mortgage or raise our existing mortgage until we sell our existin property.

It's one of those catch 22 situations i think. It would obviously make me feel safer to know we had somewhere to go before our own house was sold.

Any advice very gratefully received.

bootman

I have been looking at sort of the same thing. All the small plots for sale I have found have been between 300K and 400K!! I think you need to know someone who knows someone, if you see what I mean.

I Don't know what sort of costs you are looking at to build on top of that though. I think the land is the most expensive bit

mirage

Thanks Bootman for your reply

Just hope someone out there can think of a solution.

We've seen some excellent plots in last 6 months, some going for as little as £150k but unfortunately these get snapped up as quick as anything. There's obviously going to be less and less plots for sale and prices are going up dramatically. We're thinking the build costs for what we want will be about the same as the plot (depending on how lavish I decide to be with the interior).

It's just so soul destroying to find an ideal plot only to be stuck for a solution of how to buy it when your money is tied up in the house you're living in. We're thinking we'll have no option but to sell and hope a plot becomes available shortly after......lets bet that Sod's Law predicts it wont !!

pioneer

You could rent out your existing property & live in a mobile on your new plot whilst it is being built, this will provide site security and at the same time fund a briding loan/mortgage or multiple maxed out 0% CCs.

Way to go !

mirage

I agree this would be a good option and worth looking into. At least it gives one possible solution but would love another option to at least compare to. Thanks for your input.

pioneer

In order to Project manage your build efficiently you need to be close to it (no travelling, no cost, on site quicker, stay later, get it done), time is not exactly on your side in terms of a housing correction so you don't want to be caught with your eggs in one basket.

By letting out for a while you will pay no council tax etc you can put this towards buying a cheap caravan or mobile home that if bought for the right price you can get back at the end. Things will happen alot faster if you are there providing you have planned correctly. Might seem inconvienient for a while, but what a great fun project and look what you'll have at the end.

However it does all depend on your circumstances, good luck.

Robert_Sterling

bootman wrote:

I think the land is the most expensive bit

Rule of thumb:- land costs one third of the final value of property.

In my immediate area I have a plot which I am selling for about 40% of the final value of the property.

In a more upmarket area nearbuy ( 500 yards away ) land is 55% of the final value of the property.


Location Location Location.

davef

Have you tried Buildstore Financial Services on
http://www.buildstore.co.uk/finance/index.html

Also worth speaking to an IFA.

Seen_the_light_4

Hi

We went through Buildstore and got a Skipton land mortgage to buy a plot of land. Due to the equity in our house and earnings we could stay in our current home whilst we had the house designed and obtained Planning Permission. Once we had all that we sold and moved into rented across the road from our plot whilst the build took place.

It was more expensive because we were paying two mortgages then a mortgage and rent, but when compared to the costs and hassle of living in a caravan and having your possesions in storage it was worth the money.

Hope all goes well

Alan

bootman

Robert_Sterling wrote:

Rule of thumb:- land costs one third of the final value of property.

In my immediate area I have a plot which I am selling for about 40% of the final value of the property.

In a more upmarket area nearbuy ( 500 yards away ) land is 55% of the final value of the property.


Location Location Location.

You sould like you know your stuff;) What is the best way to look for a plot. The ones I have seen have been via agents and have planning to knock down the existing house and build another on the plot.

I am looking in the Yorkshire area.

mirage

Seen_the_light wrote:

Hi

We went through Buildstore and got a Skipton land mortgage to buy a plot of land. Due to the equity in our house and earnings we could stay in our current home whilst we had the house designed and obtained Planning Permission. Once we had all that we sold and moved into rented across the road from our plot whilst the build took place.

It was more expensive because we were paying two mortgages then a mortgage and rent, but when compared to the costs and hassle of living in a caravan and having your possesions in storage it was worth the money.

Hope all goes well

Alan

Thanks Alan

I shall look into your idea...it certainly seems the best option so far. Hopefully we'll be able to afford both mortgages. Do you know if they'll approve an amount before we've found a plot ?

Kim