Finance/mortgage on residential new build
Discussion
wickedtopspeed said:
Hello All,
Does anyone have any experience on getting a mortgage to fund a new build home ?
Own the land already, and have assets, but not lots of income.
Have heard horror stories on cost of such borrowing - but keen to hear any experiences from ph'ers.
Many thanks
I assume you mean "Self Build" rather than "New Build"?Does anyone have any experience on getting a mortgage to fund a new build home ?
Own the land already, and have assets, but not lots of income.
Have heard horror stories on cost of such borrowing - but keen to hear any experiences from ph'ers.
Many thanks
Mortgage lenders have become tts since it blew up in 2009. The rules look to tighten in some way or another on a regular basis too.
I was recently in the same position as you. I spent a year developing a house and getting planning for a house in the garden. I toyed with self building but quickly realised as I had spent all year doing the house and plot, the lenders didn't really care I was sitting on a rather large locked in profit. The fact I wouldn't be paying tax on any of it meant as far as they were concerned, I hadn't earned.
In the end, I chose to sell the land first, then the house. Hindsight, I am pleased that I did. CIL's have become a stealth PITA tax meaning I had to keep the house for 3 years to avoid paying them.
So, every case is obviously different but I would rather get planning, sell plot and move on.
I was recently in the same position as you. I spent a year developing a house and getting planning for a house in the garden. I toyed with self building but quickly realised as I had spent all year doing the house and plot, the lenders didn't really care I was sitting on a rather large locked in profit. The fact I wouldn't be paying tax on any of it meant as far as they were concerned, I hadn't earned.
In the end, I chose to sell the land first, then the house. Hindsight, I am pleased that I did. CIL's have become a stealth PITA tax meaning I had to keep the house for 3 years to avoid paying them.
So, every case is obviously different but I would rather get planning, sell plot and move on.
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