The Ultimate DIY Project
Working Lunch 13/09/01
With property prices going through the roof, it's not surprising that more of us are looking to build our own homes in order to be able to afford the house of our dreams.
One in 10 new properties is now a self-build project.
That's about 15,000 properties a year.
There is a real tangible financial benefit to this boom. When the house is completed it's normally worth at least 20% more than the actual cost of the land and the building.
Getting a bit of help
After deciding to do it yourself, the first thing you will have to do is look for people to help.
Even experienced DIYers will not be able to build a house completely by themselves.
The first thing you need to think about is who is going to design the house.
Even if you are going to draw up the designs yourself you will still need to show them to an architect to make sure it's a realistic plan.
Saving money
If the thought of designing your own property puts you off then
you can get an architect to design it and even supervise the construction
but it will obviously increase the costs.
What you will typically spend your money on
A cheaper option is to buy a house package. This will include the
design, a guide to getting planning permission, and most of the
building materials.
You will need to find a suitable plot of land. This will be your first big expense.
The cheapest plots are in the Western Isles, but in England places like Lincolnshire, Cumbria and East Yorkshire are also cheap.
Finding some land
You can find a plot of land by looking in some of the self-build magazines, talking to an estate agent or by paying a fee and searching the National Building Plot Register.
You need to make sure that any plot you buy has OPP (Outline Planning Permission), which means that the local planning department has agreed that building can go ahead on the land.
You also need to check any local planning restrictions.
You might need to hire a building surveyor to draw up the plans needed when applying for the DPP (Detailed Planning Permission), which is based on plans for a specific property.
In conservation areas it's best to go for full planning permission.
Getting extra cash
Financing your self-build house is easier than it used to be with some of the big lenders like Barclays getting in on the game, with specialist self-build mortgages.
The smaller building societies like Ecology (0845 674 5566) and the Norwich & Peterborough (01733 372 372), are more usually identified with these kind of mortgages.
The money is usually paid in stages, for instance when the foundations are completed or the roof is on.
You can usually borrow up to 75% of the value of the plot plus an amount based on how much the property is likely to be worth.
You will need some capital up front if you are going to have to wait for a stage to be finished before you receive the money.
Some lenders, like Bradford & Bingley, Britannia Building Society (0800 013 1140) and Mortgage Express (0500 111130), will release funds in advance.
