Self build mortgage 1 January at 5:59PM in Mortgages & endowments 3 replies 191 views

kimmer

Hi,

I am looking into options for buying land partly to build a house on and partly to rent out the land as a dog walking field - does this complicate the process rather than just going down a purely residential development because there is a commercial aspect? Also, I'm a bit confused with when one starts actually paying any mortgage payments - is it once the build is complete or do you actually start paying monthly payments as soon as they have given you the money for stage 1 costs?

Thanks,

Kim

user1977

Yes, it will greatly complicate things from the lenders' point of view - they tend to view things as being either residential or commercial (unless perhaps the residential has an obvious connection with the commercial as e.g. accommodation for staff, but it doesn't sound like it here). It might be better to split it into separate transactions, if that's possible.

Are you getting planning for both things at once?

MikeJXE

If the land you are buying has planning permission you should be able to get a mortgage to build. There is no need to mention dog walking.

Not sure if you can pay outright for the land like i did back in 1970 and use that as the deposit.

I had a house built on said land and the builder was paid in stage payments, I never had to pay until it was complete.

The next piece of land I bought I built my own bungalow and got stage payments, again didn't have to pay the mortgage until it was complete 

Obviously things could have changed since then.

kimmer

Thanks both that's very helpful. The dog site is more a vague thought than a definite plan - if it is going to massively complicate things then it seems like it makes more sense to consider it further down the line (it wouldn't make sense to start it when the place was a building site in any case).