Replacement dwelling questions

savingskat

OK newbie post so apologies if I waffle a bit. Basically Hubby and I have bought a house in NI. Its a 200yo farmhouse on around 1.5 acres plus an additional 4 acre field costing 90k total (with a 70% ltv mortgage)

The house has not had a lot done to it for the past 15 years or so and as such needs rewiring, replumbing etc totalling around £40k. It also has no foundations which apparently will cause issues if we ever wanna extend.

After survey we renegotiated price and got a few builders out who all thought it'd be more cost effective to knock the house down and start a new. Planning in the area were pretty confident we'd get the go-ahead for the right plan. We decided we loved the plot and outbuildings so we'd figure out what to do once we had bought it as no mega rush to move in.

This will be our home for a while so we could wait a few years to do anything however we also have around a 50% deposit (got it after buying house!) for a self build mortgage atm. The value of the mortgage is obviously tied up in the house; so I'd imagine lender would be pretty peeved if we knocked it down. However has anyone ever got planning to build a replacement dwelling BEFORE knocking old house down? Would that ever be allowed?

Alternatively we could pay off mortgage then apply for a rebuild mortgage in 3 years when our fixed term expires?

Any thoughts/opinions?

27col

I certainly did when I bought an old bungalow and pulled it down prior to building a new house on the site. If it is an old house and not a listed dwelling, then the value to the lender is in the land. The lender will almost certainly only release the money in stages as the house goes up. That way they will see something tangible to lend more money on.
There are quite a few people who would be ready to take on a partially built house if you were unable to complete it for any reason.
I believe that some BS specialise in self build mortgages, but I cannot say who they might be.
The alternative would be to get a bridging loan to enable part of the house to be built. Then, when there is something to see on the ground, the BS mortgage can kick in.

Doozergirl

It's quite normal to get permission before demolishing the old house. In some cases, demolishing the house first could even jeopardise the chances of a new build.

If you're lucky, you could build on a different footprint and only demolish the first house once the second is built. But you'd be very lucky!