Self Build Mortgage Advice

FA12345

Hello,
Myself and my husband have a slightly unusual situation and now I have a question which warrants a bit of advice if anyone can help!


We acquired a site from his parents, with the intention to pay them back for the full value of the site by 2022. This has all been drawn up and sorted by the solicitors, essentially we have a mortgage with them (not the banks) for the site that must be paid back when we 'remortgage' in some way by 2022. So the site /deeds etc are fully in our names.


We got full planning permission for the site for our build, and so far we have used our savings, small inheritance from my granny and every months wages for the last year to pay for everything so far. We have also done a lot of it ourselves under the supervision of a builder (friend of family) and engineer etc. We hire direct labour when needed for certain skills. We have the structure of the house built, roof on, windows in. Water connections etc paid for and all of that stuff. We are currently working on the gardens with the intent of going at it early next year with insulation/plumbing/electricity etc.


We have been given valuations for the site plus finished house based on architects drawings of approx €550,000. It will be A rated and all that as well. So now I'm expecting a baby and we have decided that we want to finish it a bit more quickly than initial intent!


A €300k borrowing will cover the cost of the site plus the rest of the build. Does anyone know if our situation will be seen favourably by the banks in terms of lending? Technically it will be a remortgage...


We have no savings at all left but we do have a nice partially built small house in an affluent area of Dublin. The whole things confuses me so I hope everything is clear!

fits

Find a good broker.

FA12345

Haha, I agree, we will be doing that in January but was hoping to get some insight here sooner

Calahonda52

1: is the parental debt registered and secured against the site?
2: who is signing off on compliance thus far with planning and building regs?
3: who will .... ditto.. at the end of the project?
4: have you had professional valuation for the work done so far and a professional estimate of what cost to completion are?
5: who will sign off on the valuation of the remaining stage payments?
6: valuation of finished house against drawings is worthless.

as a lender, I would want the house finished and full compliance verified before I would fund the parental debt.
My construction debt would take precedence over the parental debt and not be on a pari-passu basis.