Can I build my own home?

  • 3 months ago
  • 1
building a home

One in three of us are interested in the thought of building our own home. Life’s biggest financial asset built from our own thoughts, ideas and designs. With around 11,000 of us taking the plunge and reaping the benefits every year, the opportunity is one that must be considered strategically. But what’s actually involved?


Step one – Sourcing land

Location is by far, the most important aspect to consider, more so if you are looking to reside in the property rather than to sell on. Consider;

  • The lands surroundings
  • Neighbouring property
  • Access
  • Restrictions
  • Boundaries
How much should I pay for land?

Land prices, as expected will vary over the country but as a self-build you should expect to pay between 30-40% of the end value on the land plot itself.

30% – Expect to pay around this figure if you are employing contractors to manage the build on your behalf.

40% – You can allow a purchase price of up to this figure if you are completing the build yourself as you will not have to factor in any contractor / management cost


Step two – Planning Permission

The land plot already has planning permission

The figures above are based on a land plot having existing planning permission. Although this means plans have already been drawn by an architect, you will be able to interact with the local council re any re-submissions due to design changes.

Example
Northdown Road, Broadstairs, Kent, CT10 2UW offers a plot with planning for a detached 4-bedroom dwelling being sold by Connect UK Auctions.

The land doesn’t have planning permission

If a plot has no planning permission then you must consider not only the cost to obtain planning but the timeframe it could take as well as the risk involved if planning is rejected. If you are unsure on the likelihood of obtaining planning permission for a plot you should seek guidance from the local council and/or an architect.

How long does planning permission take?

When applying for planning the decision should take no longer than sixteen weeks from the point of application. You can withdraw an application at any time — so if you think you are going to get a refusal, you can withdraw it at any time up to the day itself, and resubmit free of charge. You can submit an infinite number of planning applic¬ations on any one site — and choose which one to use. As long as it is current, you don’t have to use the most recent.


Step Three – The Build

Whether you are carrying out the build yourself our hiring a contractor to complete the build for you the stages are the same. The timeline for the build can differ significantly and is dependant on many factors but typically it takes between 6-12months from beginning to end.

3 Tops tips to consider during the build phase
  1. Shop smart. While it may seem obvious to go straight to a builder’s merchants you should always shop around from the best price. Ask for trade prices but always know the average cost of what you’re buying before you call. Merchants often reduce cost prices if they know you are shopping around or you mention a competitor.
  2. Hire a project manager if you do not have the experience yourself. Tasks that are not so obvious, like keeping the site tidy, stacking and storing materials, site security, taking in deliveries and temporary weatherproofing all fall on the project manager. If you do choose to manage the project yourself be aware that you are committing to a lot of work, stress and daily site visits.
  3. Keep track. Yes, by now you’ll have a budget but make sure you are keeping track of the spend in spreadsheets. Keeping a diary can also help, day to day of the tasks carried out and who was on site. This may prove convenient moving forward of any unusual events that may occur or be of significance.

House end goal

If you are not looking to reside within the new build but decide to sell the property you must consider the cost of CIL – Community Infrastructure Levy. This is a levy that local authorities can choose to charge on new developments in their area. The cost of this charge will dependant on the size of the development, the location and will differ from council to council.

If you’re interested in plots of land for sale within the UK, sign up to Connect UK Auctions’ mailing list for new and upcoming auction lots today.

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              Buyer FAQs

              Do I need to register to bid?

              Yes – You have three options when it comes to bidding and each will require its own bidding process.

              If you are joining us in the room, we can register you on the auction day, at the auction venue. Just ensure you bring along 2x proofs of ID and proof of funds. Please call us if you are unsure on what to bring.

              What if I want to bid but can’t make it on the day?

              You can choose from two options; bid via Connect Realtime© or via Proxy/Telephone. Both registrations are swift and straightforward and will ensure your ability to bid on your chosen lot.

              What ID must I provide?

              By law we will require two proofs of ID – one photographic and the other proof of address less than three months old. Proof of funds will also be asked for at the time of registration. Without the above you will not be able to bid.

              What is a buyer’s premium?

              A buyer’s premium is payable on all property and land lots. This will be payable upon the fall of the gavel as contracts are exchanged. This will be paid at the same time as the deposit if you are the highest bidder on a lot, before leaving the auction venue. The amount payable will be specified in the lot description.

              How much is the deposit?

              The Purchaser shall pay a deposit of 5% and buyer’s premium of 2.2% inclusive (with a minimum of £5,000.00) and contracts are exchanged. The purchaser is legally bound to buy and the vendor is legally bound to sell the Property/Lot.

              Can I buy with a mortgage?

              Of course. Some clients like to arrange their mortgage valuation prior to auction day and others after. Either way, completion can be set at 42 days (6 weeks) from exchange, rather than the normal 28 days, or in fact, anywhere in between. As long as all parties are notified, your timeframe is paramount. Auction offers immense opportunity and allows one to buy, through some lenders, with only a 15% deposit.

              Can I make a pre-auction offer?

              Yes. Any offers made before the auction will always be put to the vendor. If you are really interested in a lot then of course a pre-auction offer is a good idea. Ensure you have thoroughly read the legal pack before offering and if the offer is accepted the sale will exchange before the auction and will proceed under the same, auction conditions.

              What is a Proxy Bid?

              Here you will advise a representative as to your maximum bid by completing our Proxy Bidding form and the auctioneer will bid on your behalf up to your maximum. They will always endeavour to secure the property for you, either at, or below your maximum bid if possible. If the bidding in the room exceeds your maximum, then you proxy bid would end.

              What is a Telephone Bid?

              Here you will be asked to complete a telephone bidding registration form. This will be based on a first-come, first-serve basis and a representative will bid on your instruction. You will be able to hear the auctioneer in the background and will also be able to watch the auction live in action through our live stream via Connect Realtime©. A representative will call you a few minutes before the specified lot so please ensure you are ready and waiting.

              What is Connect Realtime© Bidding?

              Connect Realtime© is our live streaming of the auction you will access via our website. Giving you the ability to bid from anywhere in the world, in real time. You will create an account with us, login, then register to bid on your chosen lot(s). Once registered, we will send over the necessary documentation for you to complete before approving your bidding. Once approved, come auction day, just login to your account and watch the auction unfold and bid on your chosen lot(s).

              What is an open house viewing?

              These viewings are scheduled in by our team and give you a chance to view the lot and fully inspect your potential purchase. You can choose to bring someone along with you, a builder, or someone who may have extensive property knowledge if you are unsure yourself. A team member will conduct the viewings so there will always be someone there if you have any questions while your there. If the viewing days have finished but there is still a lot of interested, the team will schedule a further viewing.

              What happens if I’m the highest bidder?

              In the room

              After the fall of the gavel you will be asked to sign the contracts. This will be sent to both your solicitor as well as the sellers’ solicitors.

              After providing your solicitors and personal details you will be asked to pay the deposit and buyer’s premium on the specific lot. At this point you are legally bound and the amount will be payable by debit card or bank transfer.

              Completion will usually take place 28 working days later (or as varied by the Special Conditions of Sale) under the supervision of your solicitor. As soon as the gavel falls, there is a binding contract of sale. The property is at your insurable risk from this point.

              Via Connect Realtime, Proxy or Telephone

              You will have already signed to say that you are happy for us to sign the memorandum of sale on your behalf to allow the exchange of contracts after the fall of the ‘virtual gavel.’

              After this has been done one of our team will be in touch once the auction has finished to take payment of the lot deposit and buyers’ premium. Once this has been completed contracts will be sent to your solicitor as well as the sellers with completion usually to take place 28 working days later (or as varied by the Special Conditions of Sale) under the supervision of your solicitor.

              As soon as the hammer falls there is a binding contract of sale. The property is at your insurable risk from this point.

              What makes a property un-mortgageable?

              There are a few reasons for this and the most obvious include the following:

              • Properties without a kitchen or bathroom.
              • Properties with any kind of structural defect, damp, dry or wet rot.
              • Properties close to mining works, areas of landfill, areas of recent flooding or subsidence.
              • Leasehold properties with a short lease, typically less than 70 years, or a defective lease.
              • Where there are boundary disputes or where planning applications have not been applied for correctly.
              • Derelict property or where part of the building is in severe disrepair and needs demolishing.
              • Properties of non-standard construction. Standard construction has brick or stone walls with a roof made of slate or tile, so anything that differs from this will be classed as Non-Standard.
              • Some properties with sitting tenants or regulated tenancies.
              • All properties with a value below a threshold, sometimes stated as £40,000.
              What is Due Diligence?

              This means that you have done everything you can, in terms of research, before committing to a property or land purchase. This may include viewing the property, commissioning a survey, asking a solicitor to review the legal pack etc.

              What payment methods do you accept?

              We take debit card or bank transfers.

              What happens if I cannot complete on a purchase?

              If you don’t exchange on the date set you will be given what’s called ‘Notice to Complete’ – This will last for 10 days and will incur a daily charge, of which the amount can be found in your contract. Failure to complete at all with result in a forfeit of your deposit as well as your buyer’s premium plus any shortfall once the property or land is re-auctioned and sold.

              What is auction finance?

              Auction finance is a service provided by specialist lenders to auction buyers. We have an in-house specialist who can provide advice and finance on the following:

              • Short-term finance
              • Funding for residential, commercial and land purchases
              • Funding for non-standard construction
              • All income types considered
              • Up to 70% loan-to-value
              • Monthly interest rates from 0.55% (other fees and charges apply)
              Do I need to do a survey on the property I’m interested in?

              A survey isn’t compulsory, but if you are unsure about the structure or condition of the property then you might wish to instruct a surveyor, an engineer, or a builder for some advice.

              But remember, as soon as the gavel falls there is a binding contract of sale. The property is at your insurable risk from this point.