Self-build home: Raise finance
There are several approaches that can be adopted for raising finance:
- Sell an existing property and use any remaining equity after paying back loans. Allowance may need to be made for financing temporary accommodation during the period between sale completion and occupation of the self-build home.
- Raise funds using equity in an existing property as collateral.
- Use capital or liquidate other assets.
- Obtain a mortgage loan. There are a number of companies offering self-build mortgages, typically on the basis of 75% against land value and 60% against building value, releasing funds in the form of stage payments. It is advisable to seek a range of quotes and to pay particular attention to charges for inspection of the work to release progress payments and re-valuations. These charges can vary significantly.
- Apply to schemes such as the Government Custom Build Investment Fund for a loan. This is only available for community schemes with a minimum of five dwellings and a maximum cost of £3m.
NB Self-build homes and the conversion of non-residential buildings into dwellings may qualify to reclaim the VAT paid on eligible building materials and services. See VAT refunds on self-build homes for more information.
Featured articles and news
A briefing on fall protection systems for designers
A legal requirement and an ethical must.
CIOB Ireland launches manifesto for 2024 General Election
A vision for a sustainable, high-quality built environment that benefits all members of society.
Local leaders gain new powers to support local high streets
High Street Rental Auctions to be introduced from December.
Infrastructure sector posts second gain for October
With a boost for housebuilder and commercial developer contract awards.
Sustainable construction design teams survey
Shaping the Future of Sustainable Design: Your Voice Matters.
COP29; impacts of construction and updates
Amid criticism, open letters and calls for reform.
The properties of conservation rooflights
Things to consider when choosing the right product.
Adapting to meet changing needs.
London Build: A festival of construction
Co-located with the London Build Fire & Security Expo.
Tasked with locating groups of 10,000 homes with opportunity.
Delivering radical reform in the UK energy market
What are the benefits, barriers and underlying principles.
Information Management Initiative IMI
Building sector-transforming capabilities in emerging technologies.
Recent study of UK households reveals chilling home truths
Poor insulation, EPC knowledge and lack of understanding as to what retrofit might offer.
Embodied Carbon in the Built Environment
Overview, regulations, detail calculations and much more.
Why the construction sector must embrace workplace mental health support
Let’s talk; more importantly now, than ever.
Ensuring the trustworthiness of AI systems
A key growth area, including impacts for construction.
Comments