Self build mortgage - what's in and out

spitonmedickie

Hi,

This might be considered a silly question (and I have looked at other threads, and maybe it would fit better in the construction forum, and yes I will be speaking to the bank again next week) but...

I'm still confused about what a self build mortgage covers. As I understand it:
Legal fees, stamp duty (transfer of site), Council development contribution, engineers and any other design professional fees, valuer (needed for transfer of site) are not covered so we need that in cash ourselves? Been suggested we need €20k for this.

What about furniture? What about a well? Painting? Kerbing? Kitchens?

Like we've been told to allow at least 30k on top of the construction costs for finish on top of the build cost quoted. Can this go into the overall mortgage we draw down?

Build cost quoted will include stairs, a certain spec of bathroom ware, doors, footpath

km79

spitonmedickie wrote: »

Hi,

This might be considered a silly question (and I have looked at other threads, and maybe it would fit better in the construction forum, and yes I will be speaking to the bank again next week) but...

I'm still confused about what a self build mortgage covers. As I understand it:
Legal fees, stamp duty (transfer of site), Council development contribution, engineers and any other design professional fees, valuer (needed for transfer of site) are not covered so we need that in cash ourselves? Been suggested we need €20k for this.

What about furniture? What about a well? Painting? Kerbing? Kitchens?

Like we've been told to allow at least 30k on top of the construction costs for finish on top of the build cost quoted. Can this go into the overall mortgage we draw down?

Build cost quoted will include stairs, a certain spec of bathroom ware, doors, footpath

As someone who has just started a self build I can first of all day that every bank is slightly different
AiB for example do allow engineer fees as part of mortgage . Some banks don’t

In terms of the contingency figure of 30k
Again most banks insist on building this in on top of construction costs as part of overall mortgage

Furniture - no
All the rest - yes

My advice would be wait to speak to mortgage advisor in bank . They will answer all your queries .
I found AIB really good .
Other ones recommended for self bulld were EBS (recommended by quite a few but no branch near me ) and PTSB

Last thing I forgot to say - you will definitely need your own cash float to start off and carry you through stages on top of all the fees you mentioned above .
You would realistically need the guts of 50k to cover the various initial expenses and the float

spitonmedickie

That's very helpful thanks. Was surprised when banks vary on what they cover, what's included, contingency required etc so will decipher those notes again too. That's before I even figure out who gets the help to build ammount and when

phormium

Basically it boils down to the finished valuation of the house, certain things don't add value to a house such as furniture/legal fees/council fees, whereas wall/kerbing might, kitchen only adds a certain amount of value whether it's top of the range or bog standard. It sometimes needs some creative quotation day one to ensure you get the max you want based on the valuation.

mailspaining

Hijacking this but another consideration I'm curious about, if you get the help to build do you have to put it against your mortgage or does it go to whatever account you nominate and you can buy furniture or replenish your contingency etc?