Advice re building

L1985

Hi all I was hoping for some advice here as slightly torn.
I am very lucky as have been gifted land that I can apply for planning permission on. It's rocky ground so I'll have to hire a rock breaker etc so I know my costs will be higher.
I am a first time buyer. Have 60k savings-prob be closer to 70k by the time I start building.
I am mortgage approved for 150k and will be a single applicant.
Now what a couple of people have said to me is to not go down the mortgage route....build slowly over the next few years and I'll save a lot of money on mortgage costs and also I can build it to my own pace. I'm single and live down the road currently with my parents so that's feasible. Located in the south east.
So I would like thoughts on this?im worried as i have no construction exp have a very busy full time job and I'm trying to see if it would make sense the hassle involved. It would be great to be mortgage free and I have no probs living with a building site for a few years but not sure if r would be worth it. I'd lose out on the mortgage interest relief as well so not sure. So my question is if I take the mortgage out Of the equation would I be able to build for 120k? Roughly? And would it make sense!!
Any thoughts would be very welcome!!

Gumbo

Your planning has to be substantially complete within 5 years.

120k. My answer would be no. You cannot build a house with that.

JackPerry

With a budget of 120 k you could build approx. 75 to 80 sq m. which is large enough for a two bedroom dwelling. A good architect could design you a house which could be built in 2 phases with the first phase consisting of the 2 bedroom unit. Later when you have additional funds you could construct an additional "wing" to incorporate more bedrooms or additional living area. The planning permission should make it clear that you intend to phase the scheme and drawings would show both phases.
By the way, you say you have 60 to 70k available so you will still need a mortgage to make up the difference.

Gumbo

JackPerry wrote: »

With a budget of 120 k you could build approx. 75 to 80 sq m. which is large enough for a two bedroom dwelling. A good architect could design you a house which could be built in 2 phases with the first phase consisting of the 2 bedroom unit. Later when you have additional funds you could construct an additional "wing" to incorporate more bedrooms or additional living area. The planning permission should make it clear that you intend to phase the scheme and drawings would show both phases.
By the way, you say you have 60 to 70k available so you will still need a mortgage to make up the difference.

120k minus planning, connection fees, waste treatment, contributions.
I don't think you'd even get an 80 Sq. M house for that.

Taking account of current building regulations and Part L in particular.

promethius

FYI Mortgages taken out after 31 December 2012 do not qualify for mortgage interest relief.

L1985

That's what I was wondering jack perry. I appreciate I might still need a small mortgage but it would be a lot less interest and if I built as I went along I might be able to do it over 3 years or so and get away with out it....just pump all earnings into it. It's hard to know -I think it can be done and I know people who have done it it's just if I would be able to do it as I'm not familiar with construction. It's been food for thought over the past few days although I have a feeling I'll have to get some sort of mortgage. My idea was something along the lines of what you said above so thanks for that

Gumbo

Why not build properly now and then lump loads of money off the small mortgage and clear it quicker.

L1985

Thanks Prometheus I was trying to figure that out actually!!

Calahonda52

kceire wrote: »

Why not build properly now and then lump loads of money off the small mortgage and clear it quicker.

+1
OP
what are the monthly repayments on the mortgage if you drew down the full 150

https://www.ccpc.ie/consumers/tools-and-calculators/mortgage-calculators/mortgage-calculator/

maybe 700/800month
so what can you save over this to reduce the capital asap?

At least if you borrow and get it finished properly you will have a den debt assist, where as if you stretch it out over several years the risk=s are higher of something going wrong and you will have zippo.

Re the rocky site, what about sewage....