27 May 2016

Four Things to Consider Before Starting a Self-Build Project

Incentives set out by the government have also made the self-build route more cost effective. House buyers can spend a lifetime searching for the perfect home, often eventually compromising on location, style, size, price, or a combination of each.

Kevin McCloud, pioneer of the self-build movement rightly claims “self-build is greener and empowers people more. It can create communities and makes houses a reflection of their owners.”

While this is 100% true, there are a number of elements of any self-build that should be considered carefully when looking to make a dream home, a reality.

Find the Right Spot

Finding the perfect plot can be overwhelming. There are numerous elements to consider, such as pinning down an ideal location, size, outlook and planning, whilst working to a fixed budget.

Finding your ideal location is the first hurdle of overcome. Be specific and narrow your search by focusing on a specific geographical location, rather than searching over a large geographical location. Once you’ve honed into a specific town or village, leave no stone unturned. Speak to the locals and get creative. A plot covered in brambles or an unused back garden may be the perfect spot for your self-build. Bear in mind however, when buying land the key principle is the more work the land needs, the cheaper it is.

Obtaining planning permission can also be a confusing and taxing process - sometimes taking years to complete. Buying land with existing planning permission usually results in the land being more expensive, but it is often the easier (and safer) option. You can see our top tips on finding the perfect plot here for further information, advice and resources.

Design for the Now … and for the Future

This is the fun part. Don’t rush. Instead consider how you can create the best house to suit you. It is an opportunity to express your personality through your architecture. Put your own unique stamp on your home, both on the exterior and interior. The sky’s the limit - but remember to keep your budget in mind.

It is easy to get carried away and try to pack your new home with every design feature or home gadget you’ve come across without considering real practicality. Think carefully about what you really need and heed advice from the professionals whose job it is to design your new home. If considering using a package builder, think seriously about using one of their recommended specialist designers - this always pays off in cost terms, giving you more bang for your buck.

Finally, think long term. A self-build home allows its owners to plan ahead and include features that will not only fit their present needs but those in 10, 20 or 30 years’ time.

Be Budget Smart

Careful budgeting of a project and the discipline to stick to it, is key for anyone undertaking a self-build project. Running out of funds part way through a build is all-too frequently the nightmare scenario that will sap any amount of joy from a self-build dream.

To avoid this, before embarking on your self-build journey, it is essential to carefully plan and set a budget. Calculate ALL of the costs before you start planning a build. Accurate calculations are essential.

While choosing a reputable pre-manufactured home supplier such as Hanse Haus to construct a new property will ensure that costs are 100% fixed after contracts are signed, other costs will still rear their heads such as building insurance and legal fees, Building Regulations fees and costs associated with site preparation. You may also require somewhere to live while the property is being built, which should be taken into consideration when compiling your overall budget.

Borrow Wisely

Mortgages aren’t just for pre-existing properties. Take the time to research money lenders, meet with your local bank manager and assess the best route forward for financing your self-build. Self-build mortgages work differently to residential products, as funds tend to be released in stages rather than in a lump sum. This is to primarily reduce the risk to the lender, but also aims to help ensure self-builders do not run out of money during a project. Good, longstanding, financially-stable fixed-price package builders should be able to offer you payment terms which work for your lender, without you having to worry about that nightmare scenario, in which the builder goes out of business during the build.

A lender will want to see detailed plans of your proposed property, a projection of costs and planning permission details. The lender may also want to inspect each stage of construction before signing off the staggered release of funds, therefore calculating your budget correctly and sticking to your budget is essential. The inspections and administration makes self-build loans more expensive, however builders should be able to re-mortgage to a cheaper deal once the building is complete.

Oliver Grimshaw, Head of UK Sales, Hanse Haus GmbH

Oliver Grimshaw is the Head of UK Sales for premium German supplier of pre-manufactured, high-efficiency homes. Founded back in 1929, Hanse Haus now erects some 400 homes annually Europe-wide and has been active in the UK since 2006.

With over 85 years’ experience in the construction industry and boasting more than 30,000 completed homes, the company is also a certified builder of the remarkable Passivhaus; a home that loses almost no heat through its walls, roof and windows, thanks to extremely high levels of thermal insulation.

[email protected]     www.hanse-haus.co.uk      0800 302 9220

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