Build costs per sq ft

[Hobo]

Having an issue at the moment with a banks surveyor. Before they will lend us monies they need to get our budgets checked by an independant QS. Anyway, to cut the short short we have a development of 5 houses, totalling 7400 sq ft. We have quotes from all the contractors (who we have used previously) & including a 10% contingency sum its coming in a £44/sq ft. They are saying it can't be done & this should be nearer £60/sq ft. That just boll@cks as we've obviously built before at this. Its in the banks best interest to overcharge as they charge a setup & exit fee of 2.5% of the monies initially asked for. This extra monies equates to a few k.

I'm just interested in your thoughts on build costs per sq ft for house. We are putting in 4k kitchens, around 3k in sanitaryware & its artificial stone/slate. We also have our own mechanical & electrical company who will do these works at cost.

The development is forecasting a return of 43%, however we have only allowed 15k for project management of a 12 month build period as we have incomes from elsewhere so don't need to draw the monies for this & be charged interest of in. The bank is saying just up our build costs 100k to get the deal signed off & them pocket the 100k ourselves, ie taking some of the profit out before its finished. Thats all well & good apart from the bank fees/interest associated with doing this.

[jamesuk28]

43 per square foot sounds very low, I thought it was usually between £70 - £100.

But as you say you have done it before so I guess you must be right.

[paul0843]

44 pound a foot...cant see it...would have thought nearer to 70-80 for very very basic spec...take the 100k.if you think its unnecessary then use as deposit for another development...my advice...you going to need it...keep it on deposit ,with comfort of knowing its there...banks have clamped up lately...
btw in central london we are allowing 300-400 per sq.foot...
sat in a meeting last week when a platinum mosaic was specced for swimming pool at £1500 per m2

[Hobo]

We don't have any options but to take the money as the bank won't sign the finance off otherwise. Margins are good enough that at £60/sq ft the return are still good enough to satisfy the banks requirements. I just can't understand why they won't accept it thought as we've showed them we can do it previously & we have all the quotes, etc to back it up.

Spec is actually quite good as well (for a home of the value we are selling). Much better than the Barratt/David Wilson, etc, standards.

[paul0843]

from what i reccolect london councils allow £100-£120 per foot for council housing