Self-build home: Raise finance
- Sell an existing property and use any remaining equity after paying back loans. Allowance may need to be made for financing temporary accommodation during the period between sale completion and occupation of the self-build home.
- Raise funds using equity in an existing property as collateral.
- Use capital or liquidate other assets.
- Obtain a mortgage loan. There are a number of companies offering self-build mortgages, typically on the basis of 75% against land value and 60% against building value, releasing funds in the form of stage payments. It is advisable to seek a range of quotes and to pay particular attention to charges for inspection of the work to release progress payments and re-valuations. These charges can vary significantly.
- Apply to schemes such as the Government Custom Build Investment Fund for a loan. This is only available for community schemes with a minimum of five dwellings and a maximum cost of £3m.
NB Self-build homes and the conversion of non-residential buildings into dwellings may qualify to reclaim the VAT paid on eligible building materials and services. See VAT refunds on self-build homes for more information.
Featured articles and news
CEOs and high-level executives explain who they expect to be the most successful players in the future of construction.
What are package contracts and how are they broken down? Find out in our introductory article.
Identifying sustainable shoreline protection solutions in the face of rising sea levels and storms in the US.
Budget documents state modern methods of construction will be favoured for public infrastructure schemes from 2019.
A walk-through exhibition of an emergency humanitarian shelter is officially opened at BRE's Innovation Park.
How to work safely on a construction site during winter.
Housing is the big winner in Chancellor Philip Hammond's Autumn Budget.
The winner of our BSRIA competition, Tomorrow's challenges in today's buildings, is.... Bob Hendrikx. A big thank you to everyone that took part.
Committee of MPs accuses government of dealing billpayers a 'bad hand' over the guaranteed power price.
In 1992, the Joint Fire Code was first published. What influence does it still have on construction sites today?
"Companies will have to adapt or go out of business" - how are virtual reality and big data disrupting digital construction?
International Well Building Institute and BRE collaborate on multiple levels to advance human health through better buildings.
"The industry has tried moving away from prescriptivism to focus on performance, but maybe that’s no longer working".