Self Build Finance - Help Required
Discussion
I have just put my property on the market with the aim of moving into rented while I buy a plot to build my own home. As often happens with these things timing can sometimes catch you out - a developer friend of mine has told me of a plot that is currently available and I am seeing the owner tomorrow.
The plot should be available for around £440K including stamp duty and the build cost around £300K. My house sale plus savings will easily cover this but in the short term, until I sell my house, I only have around £250K in savings meaning a shortfall of around £190K for the plot purchase.
So, can anyone recommend a lender who deals with land purchases as I may need to go down this route.
Many thanks
Gary
The plot should be available for around £440K including stamp duty and the build cost around £300K. My house sale plus savings will easily cover this but in the short term, until I sell my house, I only have around £250K in savings meaning a shortfall of around £190K for the plot purchase.
So, can anyone recommend a lender who deals with land purchases as I may need to go down this route.
Many thanks
Gary
Speak to Buildstore. Most of the self build lenders will lend up to 70% of the plot price. Buildstore is a financial service that deals with the self build market so they often have offers with lenders. It'll be a higher rate than the high street but will do the job for you in the short term.
That's the second time I've mentioned them today, I'm in no way affiliated with them, just building/restoring our house so went through the financing options a while ago.
That's the second time I've mentioned them today, I'm in no way affiliated with them, just building/restoring our house so went through the financing options a while ago.
Going through similar at the mo, in so far as I've had to put a deal together based on my house not being sold in case the house sale falls through. It's made it about 5k more expensive to borrow the money as I have a lower ltv and had to use a more flexible lender.
Using buildstore myself, although if your figures are not tight you could try going direct to norwich peterborough as their rate is very good, and the fees are much much cheaper.
Using buildstore myself, although if your figures are not tight you could try going direct to norwich peterborough as their rate is very good, and the fees are much much cheaper.
slippery said:
+1 for Buildstore. They were great when I built mine and the deal they set me up at the time has been better than anything I could even find once the house was completed. They are totally set up to cater for the OP's circumstances. 
+1 for me - I remember the joy/relief/excitement driving to their offices with my architects certificates each time we had completed another stage which meant the release of another payment and temporary relief from financial meltdown....I spoke to Norwich & Peterborough - they couldn't offer a better deal than Buildstore (Ipswich Building Soc). They're not very flexible either - and we've been customers for years... Saffron BS pretty good too and just announced a massive fund for self build but I'm not sure whether they have a 'distance from Saffron Walden' policy like some of the BS lenders.
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