Self-Build Mortgage on Parents Land

Mozza1984

Hi guys,

First post here so thanks in advance for your advice

I am planning to convert a stable block on land that is part of my parents house (I am buying the land). I have successfully applied for planning permission and was wondering what the best next step was.

Should I start to look at brokers for mortgages or does the land need to be separated first? Does anyone have experience of self-build mortgages with recommendations or things to avoid?

Thanks!

TonyN1

I Would definitely see a broker, self build mortgages are slightly more complex than traditional mortgages and will have some weird and wonderful criteria. A good broker will help smooth the process out!

cjard

Try and build it without one.. If you can't, be prepared for brokers who will sell you one dream and deliver another (and demand a fee). You'll also probably have to buy an insurance policy that will build it if you don't. You'll have to buy a warranty or arrange professional supervision (architect certificate), and you'll have to find a building control provider. When you want stage payments you'll have to apply, possibly pay a fee (definitely pay a fee if you use architects certs).
No lender will lend on part of a title, you have to arrange a TP1 form off to the registry to transfer part of your rents title to you. This can be going on while you build, but must be done before you mortgage. Make sure the land registry entry data is exact and precise; even a minor typo in your name or missing middle name will probably be enough to shut your application down til corrected. At the end of all this, particularly after being told you're a massive risk and having a ridiculous interest rate forced on you, you'll be fleeced into a mortgage deal that could see the lender with the rights to snatch everything off you for very little cash input on their side; you'll probably always have to pay to improve the value of their asset considerably before they release a stage payment that evens things up a little

I'd dearly love to mention a particular broker who is simultaneously the most obvious and least effective choice in the self build market, but rules here probably prohibit it. Be assured though that any independent you go to might end up applying via this set of sharks so you get roped into their marketing machine regardless. If I were self building again I would, in order of preference:

* Mortgage something else that looks like a normal house and do away with the admin and massive cost/vultures associated with this country's most minority method of providing housing supply
* approach directly any of the lenders listed in a copy of BuildIt magazine, avoiding those who only entertain applications through certain brokers
* stick pins in my eyes

It's been a rewarding experience, building my own home, but the financing of it has been the single most distasteful aspect, and something the government really needs to get a handle on if they want this country to become as deep into self building as th rest of Europe is

Land_Registry

As cjard states it is best/necessary to transfer the land first and form TP1 is the legal deed you would us to transfer the ownership

Nowadays a lender is very unlikely to lend on the land before it is split but as it is in your parent's names you will need to do it anyway in order for the mortgage to take place and be secured against the land