Self build mortgage question

owenf

Just a quick one about stage payments just wondering how many stages
Is it usually broke into and do you have to use all your money first before a stage payment??

Regards
Owen

FiOT

owenf wrote: »

Just a quick one about stage payments just wondering how many stages
Is it usually broke into and do you have to use all your money first before a stage payment??

Regards
Owen

Hi there,

I'm doing a self build at the moment and my bank have 5 stages; Completion of site clearance, foundation and main walling, Completion of roof construction, external window and door joinery, Completion of first fix, Completion of second fix, Completion.

However, for us we drew down the first instalment after foundations and the second after wall plate so that we would have a bit in advance of the expensive things like windows and heating system being ordered. Once the engineer signed off on the draw down, the bank were happy to give us our stage payment.

It's a bit stressful juggling what money you have before the first draw down (I guess depending on how much cash you have starting) but after that it's a bit easier to manage the budget. Just be smart about how much you draw down, think about what's coming next! If I could go back I'd try save another few bob before starting to save a few grey hairs :rolleyes:

Mikey555

However, for us we drew down the first instalment after foundations and the second after wall plate so that we would have a bit in advance of the expensive things like windows and heating system being ordered. Once the engineer signed off on the draw down, the bank were happy to give us our stage payment.

It's a bit stressful juggling what money you have before the first draw down (I guess depending on how much cash you have starting) but after that it's a bit easier to manage the budget. Just be smart about how much you draw down, think about what's coming next! If I could go back I'd try save another few bob before starting to save a few grey hairs :rolleyes:[/quote]


Just a quick question for you.

I will be applying for a self build mortgage soon and was wondering if you could answer the following for me?

We will be going direct labour. We will be getting a digger driver to do site clearance, foundations etc and some family members will be helping him out with pouring the concrete and floor.

What way do the bank release the funds? Do they give out cash so I can pay the digger driver and give something to the family members separately or will they need receipts?


Thanks

Mikey555

However, for us we drew down the first instalment after foundations and the second after wall plate so that we would have a bit in advance of the expensive things like windows and heating system being ordered. Once the engineer signed off on the draw down, the bank were happy to give us our stage payment.

It's a bit stressful juggling what money you have before the first draw down (I guess depending on how much cash you have starting) but after that it's a bit easier to manage the budget. Just be smart about how much you draw down, think about what's coming next! If I could go back I'd try save another few bob before starting to save a few grey hairs :rolleyes:[/quote]


Just a quick question for you.

I will be applying for a self build mortgage soon and was wondering if you could answer the following for me?

We will be going direct labour. We will be getting a digger driver to do site clearance, foundations etc and some family members will be helping him out with pouring the concrete and floor.

What way do the bank release the funds? Do they give out cash so I can pay the digger driver and give something to the family members separately or will they need receipts?


Thanks

FiOT

Mikey555 wrote: »

Just a quick question for you.

I will be applying for a self build mortgage soon and was wondering if you could answer the following for me?

We will be going direct labour. We will be getting a digger driver to do site clearance, foundations etc and some family members will be helping him out with pouring the concrete and floor.

What way do the bank release the funds? Do they give out cash so I can pay the digger driver and give something to the family members separately or will they need receipts?


Thanks

Hi,

Well I have to answer your question in two parts I think!

Firstly the bank will only pay you out once your person signing off on the stages fills out the draw down form saying they think you've spent 'X' amount of money so far. So therefore unless your contractors are willing to wait a few weeks to be in paid, you're going to have to have that cash up front to pay them.

Secondly, the bank pays you out the total of what's been asked for at each stage through your solicitor into your account to share out as you need to, no receipts needed.

Hope that helps!

Mikey555

FiOT wrote: »

Hi,

Well I have to answer your question in two parts I think!

Firstly the bank will only pay you out once your person signing off on the stages fills out the draw down form saying they think you've spent 'X' amount of money so far. So therefore unless your contractors are willing to wait a few weeks to be in paid, you're going to have to have that cash up front to pay them.

Secondly, the bank pays you out the total of what's been asked for at each stage through your solicitor into your account to share out as you need to, no receipts needed.

Hope that helps!

That's cleared things up for me.

Thank you for your help.

db

Also, the bank will pay out in 4 - 5 stages with the last one being completion so you can't be going into the bank every few weeks to get another payment. I think we had payments at foundations & rising walls, roof & windows, first fix, second fix and completion. We had a contractor and even still we needed a good chunk of cash available right through to pay for some items we kept outside the contract. We looked after the windows and stone ourselves for example.

Sharlyn

Hi, so we are planning to build early next year! I have been gifted a site from my parents so the banks are taking this as our deposit! We are required to build a bungalow and are just waiting for planning permission to go through..we are also getting married next year so funds to start are a bit limited..are we being naive to think we will be able to get ourselves off the ground with 17000 and we are then getting a 100% mortgage of €240,000! I'm panicking with regard to what money we need to have ourselves before the first draw down of the mortgage comes through basically! Thanks

Galway901

Sharlyn wrote: »

Hi, so we are planning to build early next year! I have been gifted a site from my parents so the banks are taking this as our deposit! We are required to build a bungalow and are just waiting for planning permission to go through..we are also getting married next year so funds to start are a bit limited..are we being naive to think we will be able to get ourselves off the ground with 17000 and we are then getting a 100% mortgage of €240,000! I'm panicking with regard to what money we need to have ourselves before the first draw down of the mortgage comes through basically! Thanks

Hi Sharyn,

I'm doing a self build too hopefully! In my case I have €45k in the bank. The bank have told me they will fund the self build mortgage for me. They've told me the €45k will be split like this;
--I will use 15k for the land purchase(the site is €62k) and they will pay the difference of 47k
-- I will use 10k to get the site prepped and foundations in
-- I will keep the last 20k until the end of the build as contingency.

Hope this helps

Sharlyn

Galway901 wrote: »

Hi Sharyn,

I'm doing a self build too hopefully! In my case I have €45k in the bank. The bank have told me they will fund the self build mortgage for me. They've told me the €45k will be split like this;
--I will use 15k for the land purchase(the site is €62k) and they will pay the difference of 47k
-- I will use 10k to get the site prepped and foundations in
-- I will keep the last 20k until the end of the build as contingency.

Hope this helps

Cool so 10,000 shud get the site prepped and foundations in! ðŸ‘Bank are approving us for a contingency fund also! And will just have solicitor fees to transfer site as the gift! Cheers

Galway901

Hope it goes well ðŸ‘

FiOT

Sharlyn wrote: »

Cool so 10,000 shud get the site prepped and foundations in! ðŸ‘Bank are approving us for a contingency fund also! And will just have solicitor fees to transfer site as the gift! Cheers

Hi there,

I don't want to rain on your parade but I would be surprised if €10,000 will cover all of that.

I am just beginning internal work on a self- build and we have completed most of the labour ourselves. On materials alone for foundations you're talking a lot of concrete and some steel mesh. On top of that then if you need to pay for labour for clearing a site, renting a digger etc, the price will go up again. Also, you never really know how much foundations will cost until you break ground - rock breaking, drainage, soil type etc. all could come into it when it comes to a cost.

There are SO many little extras in self - building and they all cost money. I don't want to scare you and self- building is brilliant for so many reasons but cash is key and in my own experience, €10,000 is not a lot of money. In hindsight, we would have waited and saved another 6 months - life would be much easier!

Best of luck!

Galway901

Yeh I'd say €10k is tight ish, I will be doing a lot of work myself but my concrete will be about 4500 for the an 1800ft2 raft slab

Galway901

Yeh I'd say €10k is tight ish, I will be doing a lot of work myself but my concrete will be about 4500 for the an 1800ft2 raft slab

Sharlyn

Thanks for the reply! I was delighted to think 10,000 would do it but i was also surprised ha! Hopefully the 17000 will go a long way in it!

I can't even begin to imagine how stressful it's going to be without financial issues on top of it all!

I may start learning how to drive a digger if I want my large walk in wardrobe

Thanks

FiOT wrote: »

BarneyMc

FiOT wrote: »

Hi there,

I don't want to rain on your parade but I would be surprised if €10,000 will cover all of that.

I am just beginning internal work on a self- build and we have completed most of the labour ourselves. On materials alone for foundations you're talking a lot of concrete and some steel mesh. On top of that then if you need to pay for labour for clearing a site, renting a digger etc, the price will go up again. Also, you never really know how much foundations will cost until you break ground - rock breaking, drainage, soil type etc. all could come into it when it comes to a cost.

There are SO many little extras in self - building and they all cost money. I don't want to scare you and self- building is brilliant for so many reasons but cash is key and in my own experience, €10,000 is not a lot of money. In hindsight, we would have waited and saved another 6 months - life would be much easier!

Best of luck!

Agree and self build insurance alone will be well over €1K per year also so factor that in.

efbeef

Have to agree with everyone that 10 grand will prob not complete ground works and foundation. In our case we needed fill which really pushed up or costs when we were at that stage so its important to consider things like that....

Also you can get self build insurance for less if you choose a basic policy and your workmen have their own indemnity insurance. We paid about 220 euro for a year.

BarneyMc

efbeef wrote: »

Also you can get self build insurance for less if you choose a basic policy and your workmen have their own indemnity insurance. We paid about 220 euro for a year.

What if someone, invited or not, without their own insurance arrived on site and had an accident?

efbeef

We have a sign that states construction site and work in progress no unauthorised entry and entry at own risk along with the must wear helmet at all times, no smoking etc and the site is closed with steel gates when work in completed for the day. Have been informed that this is satisfactory. The insurance then covers for fire, flood and storm damage