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    • Mrsoverall
    • By Mrsoverall 7th Feb 18, 10:10 PM
    • 2Posts
    • 0Thanks
    Financing self build?
    • #1
    • 7th Feb 18, 10:10 PM
    Financing self build? 7th Feb 18 at 10:10 PM
    I own a plot of land (urban Belfast). Itís fairly substantial but I just currently park my car there as it is adjacent to my property. Iíd like to build a three storey building with apartments to rent out. Iíve not looked into planning yet but this would be in keeping with the immediate area. Presuming this is ok, how do I go about financing it?
    Is there a self build mortgage available that I could use to finance the build? I wondered if I could use my current home as security (itís owned outright with no mortgage).
Page 1
    • nubbins
    • By nubbins 7th Feb 18, 11:16 PM
    • 701 Posts
    • 934 Thanks
    • #2
    • 7th Feb 18, 11:16 PM
    • #2
    • 7th Feb 18, 11:16 PM
    As long as you are earning, own the land and own another property outright financing shouldn't be a problem. Your major problem will be getting planning permission and the gamble of £5000-£10,000 costs just getting a yes or no at pre-application stage (if this is applicable in your area) and then another 10 - 20k gamble (solicitors, architects, bat surveys, ground surveys, landscaping,tree reports, arborcultural report, structural engineer, energy consultants, more council fees, building regs,etc etc etc) going for full planning. If you was lucky enough to get planning permission your costs of building it will be a lot more than you think it will be, getting 4,6 8 or whatever lots of gas, water and electricity into the property will run into thousands alone. I would look very carefully at your construction/fees cost before you worry about financing it.
    • Mrsoverall
    • By Mrsoverall 7th Feb 18, 11:38 PM
    • 2 Posts
    • 0 Thanks
    • #3
    • 7th Feb 18, 11:38 PM
    • #3
    • 7th Feb 18, 11:38 PM
    Thanks for the advice. I have a good income and own the land and a residential building plus have a commercial tenant with a good few years left on lease,

    I donít expect planning to be a problem (although not a dead cert). I just wasnít sure if it would be feasible to get a mortgage/loan for this type of project.

    Would it need a specialist lender?
    • Doozergirl
    • By Doozergirl 8th Feb 18, 9:35 AM
    • 24,894 Posts
    • 68,271 Thanks
    • #4
    • 8th Feb 18, 9:35 AM
    • #4
    • 8th Feb 18, 9:35 AM
    Yes, it would need a specialist as a development of flats for let is unlikley to fall under the definition of self build for mortgage purposes. It is likely to need commercial finance.
    Everything that is supposed to be in heaven is already here on earth.
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