buying land for house build.best funding?

adjey

thanks for any help in advance.
i have made an offer of 150k for a plot of land,will need 160k to build house on it to completion.just wondering best way to fund it as i will be building it myself so will have no income.i have an openplan mortgage with woolwich owing 100k on 21 years.my house is worth in region of 260k.would i be better asking for more on reserve account,doing it on buy to let? remortgage? or interest only? i know there are a lot of ?????s but any help would be good.this is a joint venture with my brother but i need to buy the land as he is getting divorced and his ex is in proccess of buying him out.cheers

divadee

what will you be doing with the new house?

also what will you be thinking of selling it for if your not going to live in it when completed?

no bank is going to touch it if you havent thought out your figures and they stack up especially in the current climate

need more info to help you out.

adjey

the planning permission is for four three storey town houses.we will be selling them when built or will consider selling off plan..my brother and myself will have to draw a basic wage off whatever mortgage we get every week as well.thanks

adjey

bit more info.we will be looking to sell all four properties for around 650k.this is on the very low side.eg selling off plan.

Imp

You are proposing a business. Get a business plan and speak to a bank/building society.

If you were building just for you, then something like Buildstore.co.uk have special self build mortgages.

If this is your first venture into this, be prepared to exceed your budget, especially if you don't know what you are doing.

A professional developer has not snapped up this land. Is there a reason for this? Bad ground conditions, flooding, mine workings etc. etc. Do your homework. Then go for it.

There is no detail in your message, but the cost of the build may well be 230,000 to 290,000.

adjey

thanks for reply.three building firms are in for this as well but are not in position to buy just yet.pp has been granted for four dwellings.the site has been levelled.and the drainage moved to front of development.

Doozergirl

You're than me if you can pull a wage from the mortgage!

Are you looking at £160,000 to build one house or all four? £160,000 is very high for one - very low indeed for four!! :eek:

I think business plan although you may have to pull considerable money from your own mortgage to show that you're investing heavily too.

Do you have a track record? I'm just wondering if this is the best time to be going to the bank manager starting a property developing business.

I'm a little concerned by your figures. £150,000 is very low for a piece of land that will yield £650,000 on a bad day

I would have suggested Buildstore for a self-build too, or buy a copy for Homebuilding & Renovating for a list of available self build mortgages.

adjey

we will be employing groundworks,plumber electrician and roofer.everything else will be done by us.£290,000.should be total costs.land,material,labour.for all four.plus contingency of £30,000