Green Building Forum - Finance for self-build Tue, 09 Jun 2026 09:26:52 +0100 https://www.greenbuildingforum.co.uk/newforum/ Lussumo Vanilla 1.0.3 Finance for self-build https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142396#Comment_142396 https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142396#Comment_142396 Thu, 12 Apr 2012 12:00:26 +0100 sidtheglass The best finance packages I have been offered so far are either 14% or 18% interest but then there are about £13,000 worth of charges on top of that (brokers fee, valuation fees, legal fees, arrangement fees, inspection fees, exit fees etc) which bump it up to about 30% which is clearly ridiculous. Has anyone out there managed to get reasonably priced development finance and if so, where from?]]> Finance for self-build https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142397#Comment_142397 https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142397#Comment_142397 Thu, 12 Apr 2012 12:27:11 +0100 Peter_in_Hungary Finance for self-build https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142404#Comment_142404 https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142404#Comment_142404 Thu, 12 Apr 2012 13:59:15 +0100 sidtheglass Finance for self-build https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142442#Comment_142442 https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142442#Comment_142442 Thu, 12 Apr 2012 22:45:39 +0100 Peter_in_Hungary Finance for self-build https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142446#Comment_142446 https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142446#Comment_142446 Thu, 12 Apr 2012 23:48:07 +0100 CWatters
http://www.money.co.uk/mortgages/self-build-mortgages.htm

If you own the land already the LTV should be fine.

I assume you plan to live in the new build but if you plan to sell it as well do make sure you understand any tax implications of selling the existing house first.]]> Finance for self-build https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142450#Comment_142450 https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142450#Comment_142450 Fri, 13 Apr 2012 00:50:23 +0100 Peter_in_Hungary Posted By: CWattersWhy is the rate so high?..

Possibly because

Posted By: sidtheglassI tried that but they considered my income insufficient to service a larger mortgage.


Posted By: CWattersI assume you plan to live in the new build but if you plan to sell it as well do make sure you understand any tax implications of selling the existing house first.


an absolute must - but I think there is provision for some time between property roll-overs - needs a tax expert.]]> Finance for self-build https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142456#Comment_142456 https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142456#Comment_142456 Fri, 13 Apr 2012 07:35:43 +0100 sidtheglass Mortgage providors are not interested if you only want the money for a short time. I could pretend I wanted it for longer and apply but then my existing mortgage would mean I was already borrowing more than my income can justify so they wouldn't lend anymore.
I haven't started the build yet - the house is already on the market but I can see purchasers faces fall as I tell them what is about to happen next door and they are then put off by it.
I am going to live in the new build so there should be no adverse tax implications.
It seems crazy when people are struggling to get 3% on their investments that I can't get a reasonable rate on this project. Interestingly, I spoke to a development finance company yesterday who sounded all interested until I mentioned the word "eco" at which point he said it was not for them as they "did not lend on "eco" projects".]]> Finance for self-build https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142457#Comment_142457 https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142457#Comment_142457 Fri, 13 Apr 2012 07:38:46 +0100 SteamyTea Posted By: sidtheglass"did not lend on "eco" projects".
Never use that word again, or 'green', 'sustainable'...
Just say your building a house to at least current standards.:wink:]]> Finance for self-build https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142461#Comment_142461 https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142461#Comment_142461 Fri, 13 Apr 2012 08:13:29 +0100 DamonHD
Rgds

Damon]]> Finance for self-build https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142463#Comment_142463 https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142463#Comment_142463 Fri, 13 Apr 2012 08:29:29 +0100 SteamyTea Posted By: DamonHDExcept that plenty of those can't do their sums right either...

Can anyone, I can't :shamed:]]> Finance for self-build https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142464#Comment_142464 https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142464#Comment_142464 Fri, 13 Apr 2012 08:34:02 +0100 sidtheglass Finance for self-build https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142469#Comment_142469 https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142469#Comment_142469 Fri, 13 Apr 2012 08:51:03 +0100 tony Finance for self-build https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142483#Comment_142483 https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142483#Comment_142483 Fri, 13 Apr 2012 09:47:48 +0100 CWatters Finance for self-build https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142484#Comment_142484 https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142484#Comment_142484 Fri, 13 Apr 2012 09:49:55 +0100 adwindrum Finance for self-build https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142485#Comment_142485 https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142485#Comment_142485 Fri, 13 Apr 2012 09:49:58 +0100 CWatters Posted By: sidtheglassThe rate is so high because it is classed as "development finance" rather than "mortgage". I only need the loan until the end of the build when I can sell my existing house and pay it off.

You have enough equity in the existing house to pay off both mortgages?]]> Finance for self-build https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142488#Comment_142488 https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142488#Comment_142488 Fri, 13 Apr 2012 09:57:38 +0100 sidtheglass Because of this I thought I would have no problem raising funds but they all seem to take income (rather than assets) into consideration and, as a typical craftsman, my income has always been low]]> Finance for self-build https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142502#Comment_142502 https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142502#Comment_142502 Fri, 13 Apr 2012 11:39:06 +0100 DamonHD
Rgds

Damon]]> Finance for self-build https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142514#Comment_142514 https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142514#Comment_142514 Fri, 13 Apr 2012 13:39:02 +0100 djh Posted By: DamonHDSounds like you want to go to one of the eco-friendly building societies
It does, doesn't it. But when I approached Ecology, I found they have a catch-22 that meant they were no use. Somebody else mentioned a similar problem on here as well, IIRC. Somebody needs to catch their board's attention and get them to look at whether they can broaden their outlook. But it could be worth approaching Nationwide or Co-op.]]> Finance for self-build https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142543#Comment_142543 https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142543#Comment_142543 Fri, 13 Apr 2012 16:27:06 +0100 sidtheglass Finance for self-build https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142552#Comment_142552 https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142552#Comment_142552 Fri, 13 Apr 2012 17:35:23 +0100 Ed Davies Finance for self-build https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142667#Comment_142667 https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142667#Comment_142667 Sat, 14 Apr 2012 17:48:12 +0100 djh Finance for self-build https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142711#Comment_142711 https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142711#Comment_142711 Sat, 14 Apr 2012 23:17:41 +0100 CWatters
If it's got planning permission just tell the bank the land does have permission for what you want to build .. and then change your mind.]]> Finance for self-build https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142921#Comment_142921 https://www.greenbuildingforum.co.uk/newforum/comments.php?DiscussionID=8925&Focus=142921#Comment_142921 Mon, 16 Apr 2012 14:43:26 +0100 djh Posted By: CWattersVery risky to buy land that doesn't have planning permission. Were they worried you might not get it?
No, it had permission.

If it's got planning permission just tell the bank the land does have permission for what you want to build .. and then change your mind.

That's the catch-22. What it has permission for is not an ecological build, and they require to see the permitted plans first.]]>