NewBuy v's Self Build

IveSeenTheLight

I'm finding the number of self build mortgages areseverly reducing this year.
There was always a limited option, but really it's getting down to only 3 or 4 options, all of which have both high mortgage rates and high arrangement fee's

Seriously, I can get a better rate for my BTL's than I can for my self build.
It maybe would be worth considering selling two of my BTL's to self fund the self build (not that I will as it's a short term fix and is not how I want to treat my tenants)

It made me wonder, with the NewBuild scheme operating to promote the building of properties, why could this not be extended to self builds?

I realise there is a risk, however with me asking for <60% LTV, I believe the risk is minimal and would be prepared to put up the land which I would buy outright as collateral.

chucknorris

IveSeenTheLight wrote: »

I'm finding the number of self build mortgages areseverly reducing this year.
There was always a limited option, but really it's getting down to only 3 or 4 options, all of which have both high mortgage rates and high arrangement fee's

Seriously, I can get a better rate for my BTL's than I can for my self build.
It maybe would be worth considering selling two of my BTL's to self fund the self build (not that I will as it's a short term fix and is not how I want to treat my tenants)

It made me wonder, with the NewBuild scheme operating to promote the building of properties, why could this not be extended to self builds?

I realise there is a risk, however with me asking for <60% LTV, I believe the risk is minimal and would be prepared to put up the land which I would buy outright as collateral.

I looked at a plot a couple of weeks ago, I was interested but put off by the traffic noise from the road but my wife didn't like it too much anyway. It made me realise though that I have to extend my current house (to sell) first before contemplainting buying a plot.

Graham_Devon

IveSeenTheLight wrote: »

It made me wonder, with the NewBuild scheme operating to promote the building of properties, why could this not be extended to self builds?

Because it doesn't help the house builders....who coincidently pay large amounts to the government.

That's about it, really.

marathonic

A self-build is something that has always interested me but I have never been in a position to do so to date.

Now that I've purchased a house, my focus will be on paying down the mortgage to a 60% LTV (will take about 2 years). At that point, remortgaging to buy the land may be an option and I can self-build slowly. Will have to see what the house price and lending landscape is like in 2015.

One of the big attractions for me is I can choose everything based on the long-term benefit to me as opposed to the impact on the valuation of the completed project.

As an example of what I mean, if a heat recovery system has a 3 year payback and an estimated lifespan of 10-15 years, it's obviously worth installing. However, if it's not going to increase the value of a completed house by more than the cost of installation, a builder is not going to fit it.

Harry_Boyle

There is no VAT on new builds but 20% on renovations to existing buildings. Cheaper then to build your dream house rather than to extensively renovate an existing one. This often results in builders knocking down victorian housing that could be modernised and renovated to make way for pokey new builds.

All that embodied energy in those existing buildings lost.

To make it worse, the government have now withdrawn VAT relief for listed properties, so expect a lot more historically important buildings to be placed on the 'at risk' register and a few accidently getting knocked down by wayward tractors.

shortchanged_2

Harry_Boyle wrote: »

There is no VAT on new builds but 20% on renovations to existing buildings. Cheaper then to build your dream house rather than to extensively renovate an existing one. This often results in builders knocking down victorian housing that could be modernised and renovated to make way for pokey new builds.

All that embodied energy in those existing buildings lost.

To make it worse, the government have now withdrawn VAT relief for listed properties, so expect a lot more historically important buildings to be placed on the 'at risk' register and a few accidently getting knocked down by wayward tractors.

So what took you down the renovation route rather than new build then renoman?

PaulF81

Swines now bill you for la housing too... Theft by the council as usual.

IveSeenTheLight

Harry_Boyle wrote: »

There is no VAT on new builds but 20% on renovations to existing buildings. Cheaper then to build your dream house rather than to extensively renovate an existing one. This often results in builders knocking down victorian housing that could be modernised and renovated to make way for pokey new builds.

All that embodied energy in those existing buildings lost.

To make it worse, the government have now withdrawn VAT relief for listed properties, so expect a lot more historically important buildings to be placed on the 'at risk' register and a few accidently getting knocked down by wayward tractors.

That of course is up to the planners.
I looked at plots with derelict steadings, looking to knock down and build new.
I was advised that if the steading could be converted, that any planning applocation knock down would be rejected.

IveSeenTheLight

PaulF81 wrote: »

Swines now bill you for la housing too... Theft by the council as usual.

Yes I know.
I received my verbal approval of my planning application and now have to pay the planning gain fee.

What irks a little is that you are adding to the supply ofp properties by building which is what the government want, yet you are asked to contribute towards the building of more "affordable" properties.

I tell you what, I'll be keeping a close eye on my local council and lobyin my MP should there be no additional "affordable" housing built.

chucknorris

IveSeenTheLight wrote: »

Yes I know.
I received my verbal approval of my planning application and now have to pay the planning gain fee.

What irks a little is that you are adding to the supply ofp properties by building which is what the government want, yet you are asked to contribute towards the building of more "affordable" properties.

I tell you what, I'll be keeping a close eye on my local council and lobyin my MP should there be no additional "affordable" housing built.

The building site I looked at a couple of weeks ago was on for 300k, but you also had to pay a 25k infrastructure charge (which may have been fair enough if it was for improving the access road) but there was also a 10k affordable house charge to pay.

John_Pierpoint

When was the law changed ? As I remember trees could have preservation orders slapped on them, but the average boring brick box could be knocked down at will.

My next door neighbour had a tree preservation order slapped on every stick in his garden in an attempt to frustrate redevelopment of a shoddy 1953 house.
[In the early 1950s there were all sorts of restrictions on the size of property that could be built and a rationing of materials - the objective was demolition and reconstruction of something twice as big; built to modern "sustainable" standards.]