Missed ‘Grand Designs: The Street’ on Channel 4 last night?
Here’s what you need to know…
Last night’s episode followed a couple who wanted to downsize without having to get too hands-on with the building process. They combine their creativity and love of art with an innovative modular bungalow to create their ‘forever home’.
Featured last night: Building our’ forever home’ — Pauline and Godfrey
Pauline and Godfrey wanted their ‘forever home’. However, they also wanted their home to be to an outlet for their creativity, as well as a space to live in.
They opted for an innovative modular bungalow that was built off-site, removing the pressure of an on-site construction process. It was important to them that their home not only was, “a space that was our own, designed to our specifications” but that it also had an art and design aspect to it to reflect their originality.
To make their dream home a reality they needed to secure a self-build mortgage, which proved to be not as straightforward as first anticipated. However, in Godfrey’s words, “due to Graven Hill’s diligence and attitude” everything worked out and they can now enjoy their home.
The details: 3 bedrooms, 2 bathrooms, started in November 2018, yet to be completed, estimated build costs, £300,000.
Financing a build
The nature of buying a self-build is different to a conventional house purchase, due to it needing to be built first! Therefore, an alternative mortgage option is needed. At Graven Hill, BuildStore Mortgage Services provide advice and exclusive mortgages for self-build homes that allow you to receive money as your build progresses rather than in one lump sum.
What is a self-build mortgage?
Self-build mortgages are suited entirely to the realities of a self-build project.
Amazingly, you can borrow up to 95% of the cost of the plot and the build. This is an unusually high percentage that allows you to stay in your current home while your dream home is built, eliminating the need for temporary accommodation.
How does it differ from a normal mortgage?
Unlike a traditional mortgage, self-build mortgages are released in stages, and are simply known as stage payment mortgages.
There are typically six stages:
- Land purchase
- Preliminary costs and foundations
- Wall plate level
- Wind and watertight
- First fix and plastering
- Second fix to completion
These stages can vary slightly depending on whether your house is constructed with bricks or timber.
As the value of your build increases, a percentage of the total funds are released by the lender. The amount you receive depends on your income and the stage of the project, so you’ll always have the money you need to keep your build on track.
Generally, funds are released in arrears, but BuildStore Mortgage Services also offer the exclusive Accelerator Mortgage. This lets you receive the funds in advance of each stage instead of at the end of them, giving you access to the money you need to buy materials and pay your contractors.
Help to Buy
If you’re not quite ready to take the self-build plunge, there are other options on the site too. Our Custom Build New Homes provide the perfect combination of personalisation, without the need to build your entire home from the ground up.
Our custom-build properties are also supported by the Help to Buy scheme, allowing you to apply for a 20% equity loan from the Government to boost your minimum 5% cash deposit. From there, a 75% mortgage can cover the rest.
To find out more about our self and custom-build finance options, get in touch with the team today.