Funding a new build
Discussion
I'm in the fortunate position of having full planning to build a small 2 bed bungalow in my back garden.
The original plan was to fund it out of savings and manage the build myself to keep costs down. Unfortunately the amount I've managed to save is falling well short, plus my current job wouldn't give me the time to manage the build, therefore I'm looking to fund the full build.
What's the most cost effective way to proceed here? And the best order to arrange things? Do I separate the plot out and then look to borrow money against the plot. Or do I try and borrow more money against my existing house and remortgage when built? I currently owe around 110k on a 200k house (this is the NW of England). I estimate the build to cost at 80k and be worth 170k finished. The other issue being I'm self employed now but was employed when i first bought this house with decent garden.
The original plan was to fund it out of savings and manage the build myself to keep costs down. Unfortunately the amount I've managed to save is falling well short, plus my current job wouldn't give me the time to manage the build, therefore I'm looking to fund the full build.
What's the most cost effective way to proceed here? And the best order to arrange things? Do I separate the plot out and then look to borrow money against the plot. Or do I try and borrow more money against my existing house and remortgage when built? I currently owe around 110k on a 200k house (this is the NW of England). I estimate the build to cost at 80k and be worth 170k finished. The other issue being I'm self employed now but was employed when i first bought this house with decent garden.
The options are as follows:
1. Buildstore finance (probably only any good if you meet the criteria for self build)
2. Remortgage
3. Joint Venture with a builder
Obviously your employment status change makes things tougher but not impossible. When you say self employed, are you really a director of a Ltd?
1. Buildstore finance (probably only any good if you meet the criteria for self build)
2. Remortgage
3. Joint Venture with a builder
Obviously your employment status change makes things tougher but not impossible. When you say self employed, are you really a director of a Ltd?
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