Use your own savings - Savings can be used to finance the self build, and sometimes relatives or friends can also support your finance with their own savings by arranging an informal loan.
Sell your current home - This will depend on how you want to finance your self build and how much cash you have in savings. If you sell your current home, you many need to consider alternative accommodation such as living in a caravan on site or living with relatives whilst the new home is being built. If you don't wish to sell your home and move into temporary accommodation, then Accelerator may be right for you. Accelerator gives self builders money before each stage of your project starts meaning you have the cash to pay for labour and materials before the project begins. Visit www.buildstore.co.uk for more information. Receiving your stage payments in advance will ensure that cash-flow is not an issue during the build, so you can continue living in your current home until the project is complete.
Take out a mortgage - If you need to borrow money then finding the right mortgage for your build is crucial to ensuring the success of the project. A mortgage for a self build is slightly different from a mortgage you would use to buy a house, because with a self build mortgage, the money is released in stages as the build progresses. Usually you can only borrow up to 75% of the land cost and 60% of the build cost, therefore a significant deposit may still be required.
Although building your own home can prove an exceptionally good financial investment, the costs of building and running your new self build can add up - legal fees, additional labour costs and wastage of materials are just a few extra costs than can trip you up during your self build, but as long as you assess you current situation and work out which method or combination of methods will work best to ensure the project is a success, you will be well on your way to achieving your dream.
Arc Design Services Ltd are a fully Accredited Planning Agent in the Trafford Council area, catering for all client aspirations. We work on all types of residential architectural design projects within the South Manchester and Cheshire area relating to residential design from domestic extensions, loft conversions, remodelled homes, alterations and refurbishments to one-off designed, bespoke new build homes.
If you would like any help on designing your new build or would like to discuss your requirements in detail, then contact us today and we will be happy to help!