Self Build Mortgage

pennywise02

We have spent a considerable amount of money on our building site on planning permission, putting in foundations and site levelling etc.

We have worked hard to do this out of our own pocket over a period of time to try and reduce the amount of mortgage we need but now we've hit a problem................

our site is on land which has shared access to it and access is also via a farmyard, this doesnt bother us as it is family land but we are finding that these 2 circumstances are causing problems getting a mortgage as alot of mortgage providers have clauses against this.

I understand why they have them but how are we supposed to build??

We have a good credit rating and have passed the initial credit check stage, this is our big restricition atm and causing some sleepless nights!

Does anyone have any recommendations as to who might provide a good rate mortgage?

We are in northern ireland if that makes any difference?

amnblog

On Self Build the message is always to get the funding sorted before you start.

Many self build lenders do not like lending on projects that have already started.

Speak to a broker that does self build regularly, there are a number around and you will find them on the web.

holly_hobby

Although the farm is currently family owned, there may/will come a day when it isn't, and if the new owner prevents access via the yard, you or the owner of your new house will be a bit scuppered.

The other issue is even if right of way was added as a covenant (assuming the farm is unencumbered, and the house will have its own title deed), this unusual arrangement may still cause issues on the re-sale market for potential buyers (either on a voluntary sale basis, or a forced possession).

All this should have be really bottomed, and thought about, before you commenced the build.. It being farily obvious that having to access your home through someone elses farmyard (even with right of access) is a tad unusual and wouldn't be everyone's or most peeps cup of tea (even if you were to build for cash, you're thinking about the re-sale market if as I say you wanted/needed to re-sell and no one knows what the future brings).

Unless the property can be furnished with its own private access (without going through the farm boundaries itself), it may be better to stop the build now, save throwing more money at what may essentially be worthless on the market (unless you find a cash buyer happy with the situ).

Have you spoken to a local broker about this ?
Have you spoken to your planning dept for guidance on changing access ?
What suggestions have they made re either the farm deeds or re-jigging the access issues ?

There are still a few self build lenders about (and many will consider from foundation stage onwards - all will be in stage payments comparative with build status), and AFAIk Buildstore (a dedicated self build/renovation portal) also lend in NI - .run your current situ passed them and ask for their comments on how it may be managed to make this a mortgageable exercise ... http://www.buildstore.co.uk/whyselfbuild/index.html

Hope this helps

Holly

pennywise02

Thanks Holly,

I understand the reasons why some mortgage providers have these provisions in place but unfortunately doesnt help our situation.

Planning, archetect & mortgage advisor never hinted this may be an issue!

I have looked at buildstore before but thought it was a very expensive option?

We have considered alternative access and there is no way we can avoid having shared access but we may be able to bypass the farm yard.

Does anyone know if a bank or building society would object to access that ran past a farmyard yard to one side but did not actually go through it?

holly_hobby

Planner and architect aren't mge advisers so wouldn't have an idea I would suspect.

But your mge adviser certainly should !

Don't they know of one, given that they didn't raise the obvious access issue as a problem in your initial enquiry ?

Given the issues, you may not have many options re whose is the most expensive .... but I do fear they'll be no home for this unless the access is amended, family agreement of shared access, unless legally in place (ie right of way etc) won't swing it, given as I say this could be cut off by any new owner of the farm, with the lender also having to consider if the property was repossessed would access still be permitted by your family (or A N Other), or even attractive to another buyer, which is how their surveyor will assess whether this is viable security for a mge.

Get your adviser to pull his/her finger out on this, and if they don't know of any lender/didn't realise due to lack of experience/exposure to this type of enquity it would be an issue, they need to start doing a bit of legwork to find one, or at least bottom out that there is no one whom will take this enquiry in its current format .(which I suspect) ...... given your adviser is part of the c**k up, make them earn their fee or assist in finding a solution !

Holly x

bigadaj

To be fair this is more of a planning issue than a mortgage one, at least initially so your planners are largely to blame.

It sounds as though you have progressed to a point from savings and now want a mortgage , diverting around the farmyard would be a solution but you'd need to formalise this as a separate access, potentially with a right of way for a crossing for the farm to access land. We do t know the distances involved but building a new road isn't likely to be cheap, even if it is of hardcore rather than metalled type.

Thrugelmir

Right of access is a complex legal issue and should have been addressed with a solicitor before construction commenced. Even if it is family land. As effectively there's a potential ransom strip. Also connection to existing drains requires addressing and formalising.