Self build mortgage - what's not included

jamesdeanjames

My build is currently being costed and I'm wondering what exactly the bank won't pay for in the mortgage. Most I know such as
Professional fees - architect, engineer, solicitor
Council, esb etc
Furniture

What am I missing here?

Is fitting out the kitchen included and things like major appliances?
Flooring?
Painting?

Meeting the banks next week but looking to get a heads up. I've had some informal chats so know my borrowing limits etc.

Thanks!

Trish56

When building by direct labour all lenders will require you to have a qualified Architect/Engineer with Professional Indemnity Insurance to supervise the construction of the property and to complete a detailed list of the costing's. The lenders have their own standard form for this and will not accept below €85/€90 per sq. ft. to build. You must also add 10% contingency plus professional fees and Local Authority fees.

jamesdeanjames wrote: »

My build is currently being costed and I'm wondering what exactly the bank won't pay for in the mortgage. Most I know such as
Professional fees - architect, engineer, solicitor
Council, esb etc
Furniture

What am I missing here?

Is fitting out the kitchen included and things like major appliances?
Flooring?
Painting?

Meeting the banks next week but looking to get a heads up. I've had some informal chats so know my borrowing limits etc.

Thanks!

sonder

Hi, I see you have gotten to the wet room stage of your new build, congratulations!
I am currently drawing up my own plans and internet searching to see if I could make my dream of a self-build a reality (already have the site & I am pretty sure planning will not be an issue).
Anyway from your experience what exactly does a self-build mortgage cover? Also how much are all the extras such as solistors, engineer & council fees? As I said I'm a long way off but I would appreciate any guidance on how much cash I'll need to be saved before I even enter a bank. Thanks

jamesdeanjames

I'm only starting next week!!! I'm trying to tie down costs on absolutely everything, from taps to tiles, as we're a little over budget.

So far my understanding of of what is not included....

Council Fees - 5.8k
Engineer Fees - 6k
Water - Still not sure of this. Could be around 4k or more/less. This a is a major concern. A lot depends on whether the water mains is on your side of the road or not. If not then traffic will need to be stopped for construction work etc as they bring across a connection, which can really add to the cost. Lots of people I know have done their own well. There seems to be pros and cons. A buddy of mine tells me his well was in the region of 2.5k. I'm not sure of any service costs he had with that. I'm actively trying to figure out this.
Solicitors Fees - We have a family friend doing this so it will be cheap. I believe it can be around 1-2k but not sure. I'm sure others will advise.
Architects fee - 6k - We didn't pay this as it was gifted to us but that was the price.

There were lots more fees for site suitability tests etc during the planning process, which you may already be aware of. I'm not sure of these as I was out of the loop for this. Everything else is covered, excluding furniture and things that aren't really tied down. However, if you're smart you can bend the rules a little with your engineer. (I.e, he can draw down 16k for kitchen, the kitchen can cost 12k and you spend 4k on furniture). That's assuming you have wiggle room. In this case I don't!

It's the council fees that are the killer. Water connection I can take, but the council fees are seemingly pulled out of thin air.

sonder

Oh, thanks so much for the information. A friend of mine paid 13k to the council in Dublin city center for the connection! Doesn't seem right does it? So yes, I do think they do pull them from thin air!!

sonder

ps: What price are you expecting your build come in at per square meter?

jamesdeanjames

Up to the builders finish around 91 per square metre. That's underfloor heating with air to water included. This is without the kithcen and flooring etc.

Final finish we're hoping on 108 before we are able to move in. That will be minus much of the furniture and one empty untiled bathroom.

sonder

Are you first-time buyers? I read that new-build's qualify for the first-time buyers' tax rebate of up to 20k.

jamesdeanjames

We're under the LTV cut off so in theory no (site was a gift). But I'll still apply. If we qualify it will be a life saver!

sonder

Do banks calculate the LTV rate on the potential resale value of your completed build (total newbie)?

jamesdeanjames

sonder wrote: »

Do banks calculate the LTV rate on the potential resale value of your completed build (total newbie)?

Ya, that's it. On the flip side you get a slightly cheaper rate with a low ltv. However it would be a life saver to have it now.

sonder

jamesdeanjames thanks for all your information & help... I don't think I'd qualify either.
Best of luck on your build, I hear they are stressful times, but enjoy your new home when it's complete

jamesdeanjames

Sound! And good luck yourself.