We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Self build advice
Taggo
Posts: 113 Forumite
Hello,
We are considering moving to be closer to family and looking at our options. The ideal scenario is we build our forever home and looking to see if this idea is possible.
My parents own the adjoining house which belonged to my gran which they let out (small mortgage, used to buy out my aunt)
If we were to go ahead and decide to build it would likely be on the other side of my parents in their garden, planning shouldn't be an issue.
One thought to avoid high self build interest rates and having to wait for stages to complete for money to be released is,
Use the equity in my current home that I will sell to buy my grans old house, from my parents, and therfore have a house worth roughly 150k mortgage free.
In doing this am I then able to take out a mortgage on this property and use this to fund my self build. Or am I overlooking some major points.
Any advice appreciated
We are considering moving to be closer to family and looking at our options. The ideal scenario is we build our forever home and looking to see if this idea is possible.
My parents own the adjoining house which belonged to my gran which they let out (small mortgage, used to buy out my aunt)
If we were to go ahead and decide to build it would likely be on the other side of my parents in their garden, planning shouldn't be an issue.
One thought to avoid high self build interest rates and having to wait for stages to complete for money to be released is,
Use the equity in my current home that I will sell to buy my grans old house, from my parents, and therfore have a house worth roughly 150k mortgage free.
In doing this am I then able to take out a mortgage on this property and use this to fund my self build. Or am I overlooking some major points.
Any advice appreciated
0
Comments
-
You would be better off using the equity in your current home to build the new property. If you need more than £150K to build it where is that going to come from?The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.0
-
The equity in my house is small, only been in a year, but enough to pay of the mortgage on my grans home.
Keeping this isn't an option il be moving hundreds of miles away. Just looking if freeing up the money in advance is possible.
As far as budget, given I'm not paying for land and services etc are on site, if I can't do it on that budget I won't do it at all.0 -
Never done this myself but if watching grand designs has taught me anything :rotfl:- it more often than not costs more than planned.
You should do your sums - cost of planning - architects etc and then find a builder that will do it for a fixed cost..
Get those prices to see whether it can be done in the price range you are looking for. If it can - then go and see a broker to get the finance sorted.0 -
All I'm wondering is if that way of releasing funds is possible.
The actual build doesn't worry me, father is a joiner with 40 years experience, He'l guide me right on this.
So the finance. Anyone know if that's doable?0 -
Use the equity in my current home that I will sell to buy my grans old house, from my parents, and therfore have a house worth roughly 150k mortgage free.
In doing this am I then able to take out a mortgage on this property and use this to fund my self build. Or am I overlooking some major points.
Any advice appreciated
If the equity in your current home is not 150k you won't own your gran house outright, your parents will still own part of it.
I believe much more straightforward action is the best way to proceed.
Just sell your current home, use all or part of the equity as deposit and buy your granny house with mortgage. Ignore the fact that it's currently owned by your parents. The Lender should be more or less happy with this scenario as this is straight forward house move.
Then have your parents gift you (or simply invest) the proceeds from the granny house sale for the new build.0 -
Ah, a very obvious way, should have thought of that. My thinking was they sell me the house for whatever is left in mortgage. Say 30k. Your way is a lot more simple. Woods for the trees an that. Thanks all.0
-
Hi,
Perhaps use a mortgage broker rather than approach lenders direct as I don't think some lenders will allow you to buy from family.
Tlc0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 353.7K Banking & Borrowing
- 254.2K Reduce Debt & Boost Income
- 455.1K Spending & Discounts
- 246.8K Work, Benefits & Business
- 603.2K Mortgages, Homes & Bills
- 178.2K Life & Family
- 260.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards