Self Build - Building your own home

 

Introduction

Building your own home can be one of the most rewarding experiences you will ever have.  There are many people who think about it but never actually move forward with any plans.  To help you realize your dream we have put together information that will give you a head-start in the Self-Build Process.  There is a lot to consider and you will need to carefully plan each step to avoid unnecessary pitfalls. 

Tip: Discuss your plans thoroughly with your family.  Self-building can be emotionally stressful and financially challenging.

Editors Note:  The information contained here primarily relates to the United Kingdom.  You will need to research carefully regarding regulations and laws in the country that applies to you.  We will update this section with relevant Information Web Links as these become available. For extensive information for Self Builders visit the Buildstore.co.uk

 

Finding the perfect building plot

Not all available land plots are the same.  You will need to establish… Does the land having planning permission?  If so, what kind? If the land does not have planning permission, what is the likelihood of obtaining planning permission from the Local Authority.

You will need to pay for registration but the information and availability of land plots is extensive and well worth the small investment.

Editors Note: When I undertook my first build the two most important items I purchased were: 1. As subscription to Land Plots and 2. Build It Magazine. You can get both of these from the Buildstore.co.uk

 

Building Plot Databases

Do a search and you will find a number of these detailing available building plots.  A number of these will organize their data by country.  In general you can search and see details on available plots; however the contact information will be hidden.  Therefore you will normally have to register and pay a subscription fee.  This is a good way to source potential building plots but it can also be frustrating as very good plots have a tendency to sell quickly and the individual advertising the plot does not always update their advertising information.

Remember:  It is always safer and easier to buy a building plot with Local Authority Planning Permission.  Buying without this carries a high risk factor.

Beware:
There are many companies, organizations and individuals offering land plots for sale without appropriate Planning Permission. Buying a plot without Local Authority Approval carries a high degree of risk.  There is land available that will never receive planning permission and therefore you need to avoid these.  Research your land purchase carefully. In the UK the Financial Services Authority (FSA) have forced the closure on a number of companies offering building plot that do not have planning permission or indeed bogus. In these events buyers have not only lost their money but also find themselves without land.

 

Ask a Realtor or Agent

Speak to your local Realtor or Agent. These are professional people with a depth of local property knowledge that will guide you on the right path to buying a suitable building plot. Realtors and Agents have variety of resources, including contacts with developers,, landowners and existing clients that have large parcels of land attached to the sale of their house. Tip:  This approach is not without effort on your part.  Keep in regular contact with Realtors and Agents letting them know you are still interested in acquiring a suitable building plot.

Private Land Owners

There are many people all over the world that own very large parcels of land.  There may be an opportunity to acquire land sufficient enough for your requirements.  It may also be useful if there are buildings, such as an old barn, that are available.  Renovating and converting old farm buildings, especially in the UK, has become very big business.  Do not expect to find cheap rundown buildings, land owners now place a premium price for these, very sought after properties. We have a free guide on Finding Land Owners in the UK. Also check our Plot Finder on the Buildstore.co.uk

Builders

During the process you will need to contact a number of builders to obtain references.  It is a good idea to ask them if they have any available land.  In some instances a local developer might even consider selling part of a development to assist with cash flow.  Find a Recommended Builder

Your Local Planning Authority

It is definitely worth talking to the local planning authority as these will sometimes sell land with development potential. 

Remember: If you buy land with an existing building and with to renovate or convert it you will need obtain planning permission is most cases.  Ask your Local Planning Authority.  DO NOT assume that because a building already exists that planning approval is a foregone conclusion … that can be a very expensive mistake.

 

Single or Group Building

Most people start out the process of finding a suitable plot and building an individual house.  It is, however, worth considering a Co-op development.  There are a number of people that form a group of self-builders and purchase a larger plot of land to accommodate all the individual houses.  This type of development can be very useful and you will find that everyone in the group will have a different set of skills that can be used.  It is interesting to note that this type of project can take a number of forms.  That is each person involved will simply take care of his/her own builder with a privately employed builder.  In other cases one building company is employed to take the construction process for all the houses.  In the last instance the group are generally made up of builders, electricians and so forth.  These groups will build all the houses, each using their skill set to achieve this.

 

Important: No two people are the same and everyone will have different ideas.  You will need to establish a written set of rules.  You will also need to have your legal advisor draft a contract or review any contract being offered.

Leg Work and Elbow Grease

Find time to do your own leg work.  The internet is without doubt a huge benefit when it comes to information.  There are numerous ‘Self-Build’ web sites on the internet, all with their own flavor of good solid information, from selecting the type of build to reading self-builder case studies.If you are looking for a building plot in a familiar area, then do some walking.  Go and visit your local Realtors or Agents, Planning Authority and Builders.  Before long you will get a feel of what is available and for what price.

Tip: If you come across a house with a ‘For Sale’ board it may be worth asking if the property has a very large garden …. Do not forget, it does not matter how big it is, if it does not have access or like to obtain planning permission it will not be suitable for your purposes.

 

Run-down properties

Scout around areas that have ‘High Priced Housing’.  It is worth seeing if there are any properties that could be renovated or demolished to make way for a new house.  Before you decide to go ahead and buy it is worth a trip to the local planning authority and discuss any ideas you may have.

 

Plot SuitabilityWhen you have found a suitable building plot you need to ensure:

It has either ‘Outline’ or ‘Detailed’ planning permission.

If the plot has ‘Outline’ planning permission are there any design constraints? For example is the plot within a conservation area?  Will you be limited to a single storey building?

If the plot has ‘Detailed’ planning permission it may not fit in with exactly what you want.  Talk to the local planning authority to see if it is possible to change the details.Dates that planning permission was granted and when it expires

Enquire at the planning office about the surrounding areas.  Has planning been granted for an industrial building next to your plot?

Check for the local utilities.  Are these already on-site?  What are the connection costs?  Do you actually have access to utilities?

Check to see if the plot is on a Flood Plain.  Check nearby brooks. If you build on land that is not suitable you find it impossible to obtain insurance.  If you have elected for a ‘Brownfield’ site check past use … it may be contaminated.Always get a good legal advisor, one with experience in converyancing.  You need to carefully look at any type of land covenants and ensure you have access.

Get a good architect; they will consider all aspects of your plot

 

Self Builder Mortgages

Most mainstream banks do not offer Self Build Mortgages, although this market is expanding. You will need to provide a well presented plan.
Do not expect a mortgage lender to provide 100% of the amount borrowed.  Normally lenders provide stage payments in line with the build progress.
 
Depending on the lender, the mortgage may include to cover the purchase of the land. When it comes to the building, lenders will release funds as per the Builders Stage Payment plan.  That is at certain points of the build, for example the foundations completed, the lender will release funds to cover this and each aspect as the build progresses. 
There are a few types of mortgages that lenders will adopt:

Arrears-Based Mortgage

With arrears based payments, you will receive the stage payment after the stage is completed. This is safer for the lender but may cause you cash flow difficulties unless you have sufficient funds of your own.  Ask your builder, he may require 50% of the funds prior to starting each stage and 50% on completion of that stage.

 

Advance Stage Payment Scheme

Advanced mortgage schemes are the opposite whereby the lender provides the full amount for each stage, prior to the start of each stage. Note that lenders of advanced stage payment schemes have tendency to charge more due to the increased level of risk.

Shop around for a good builder.  Most builders are fully aware of how lenders operate stage payment schemes and are willing to work within those constrains.

 

How much can I Borrow

You really need to shop around depend on whether you need funding for the land and build or just the build itself.  Many lenders will only provide a mortgage on the build, but not the land. Like any other type of mortgage the lender will want to see a financial commitment from you in the form of a down payment.  Lending percentages vary from lender to lender so again, you will need to shop around.  Remember the less you borrow the cheaper it will be.

 

Restrictions and Requirements from a Lender

You will have to take into account that some or all of the below will be required:
 
If you already have a mortgage the lender will require evidence that you can in fact pay both mortgages. Some lenders have an approved list of builders and contractors and will insist these are used. Some lenders will restrict the building methods employed, i.e, timber frame or brick and block.  The lender will look at the resale potential. Most lenders will insist that the build is not simply for commercial gain but intended as the builder place of residence on completion. Most lenders will insist that the land has a minimum amount of planning consent remaining.All lenders will insist that sufficient and appropriate insurance has been purchased to cover the build and that a builder is able to provide an ‘Approved Warranty’ on the completed build.

Mortgage Providers

We recommend sourcing a mortgage lender via the Buildstore.co.uk. Remember to investigate each of mortgage lender so that you obtain a mortgage that best suits your needs.

Other funding options

Not many people can afford to self build without some type of borrowing, however you may consider re-mortgaging your existing home.  It is also possible to sell your existing house and place temporary accommodation on-site.  This option may be suitable for an individual or couple, but if you have children this can cause undue stress on the family.

 

Self Build: Construction Options

One of the biggest advantages of self-build is that you have a lot of flexibility over the method of construction. To determine your method consider the following:

 

Design Preference

There are a number of options, including Timber Frame, Steel or Brick and Block.  Each has its merit, benefits and constraints.  Your architect and builder will be able to assist you in your final choice.

 

Budget

You will need to consider the construction methods as each will have an effect on the cost per square meter. Your architect and builder will be able to assist you in your final choice.  Remember some lenders will insist on certain methods of construction.

 

Location of Plot

Your chosen location will have a bearing on the build.  Small villages and certainly conservation areas will be restrictive on what can be built and how it can be built.

 

Do It Yourself – Or – Partly Do It Yourself

If you intend to actively take part in the build then you will have to be realistic as to what you are capable of.  If you do not have the necessary skill, in any given area, you should not attempt to do the work just for the sake of keeping the cost down.  You may well find it will cost you twice as much in the long run.

 

Is it Saleable?

Whatever method you use you will need to consider how easy it will be to sell the property if you need or indeed want to.  Most people like to buy houses of a certain style and therefore building something unusual to the chosen area will not only look out of place but may well be very difficult to sell.  In most cases the local planning authorities do not allow buildings that would not fit within the existing planning environment.

Considering the type of construction

Timber Frame

This is a popular method, especially in Europe. This method provides a lot of flexibility in your design.  Talk to your architect about building a timber frame house. 

 

Block

One of the most conventional building methods, generally constructed with concrete blocks with an insulating cavity and a face brick or stone front. This type of construction has its constraints if you require open-planning.  Brick and block homes are more widely accepted and therefore generally easier to resell.

 

Steel Frame

Not often used throughout Europe but it is common in the USA.  Generally these come in kit form and designs are limited. If you are serious about a large open-plan house then steel framed construction provides the best choice.

 

Going Green

More and more people are looking at ways to build houses that have less of an impact on the environment. Many self-builder mix eco methods while others go with one single concept or environmentally friendly building.   You will need to carefully consider your options as it may not be appealing when it comes to selling your house. See our Eco-Friendly Section.

 

Your House – Your Design

You should be aware that your design will have an effect on the type and method of construction.  Consider the following:

Kit vs. Unique

Buying a kit house will have constraints to your design.  You will need to be flexible.  There are many companies supplying kit homes, from Timber to Steel Framed, so shop around.

 

Editors Note: Need a Kit Home and more? See the Buildstore.co.uk

 

Control Your Budget

Your ultimate design will affect your budget. Unless money is not a concern you will need to carefully consider the style and amount of space you want. Talk with your architect and builder about the size of your budget.

Remember: You will need to have a contingency fund to cover unforeseen expenditure.

 

Plot and Location

If you remember earlier – Your chosen plot will have constraints as to what you can build on it.  Your local planning authority will provide detailed planning permission and may not allow you to alter the plans. It is simply pointless buying a plot where you cannot build the home you want.  Check with your architect and planning office.

 

Choosing an Architect and Builder

We are all human.  We all have preferences and dislikes.  Architects and Builders are no different.  You will need to chose one that fits in with your concepts. It is also important that you are able to communicate effectively with them. 

 

Your Dream House

99% of all men would like a swimming pool and a snooker room. These ideas are great providing you have the budget.  However most family homes come in on a narrow budget and therefore you have to be realistic. Your architect and builder will want to know what you require so carefully consider ‘Wants’, ‘Needs’ and ‘Budget’.

 

Getting a professional is an essential part of building your house although it is worth looking into other sources of design.  There are a number of books on the market that provide house designs.  Many of them are US based but again, it never hurts to explore your options and for the price of a few dollars it may give you some real inspiration.If you can, find an architect that has been recommended. If this is not available then you should initial a preliminary meeting to discuss your requirements.  You will need to establish if the architect fully understands what you are looking for an if it fits in with his/her area of interest.  All architects have a portfolio and it is worth looking through this to gain design inspiration. Don’t forget … ask for references and follow these up where possible.

 
Architects

These are professionals that are qualified to design buildings. The will have extensive knowledge of construction methods and will familiar with planning authority procedures.  In many cases the architect can be employed to take overall control of the management of the build.  If you are considering a Kit House then the manufacturer will provide all the necessary plans which the builder must work to.  In these cases it is you that manages the build.

Building Surveyor

Ask your architect about Building Surveyors.  They generally have an in-house member of the team that will survey the property. They may also come up with some excellent design concepts.

Structural Engineer

If you are looking for an Open Planned House you will need to consult a structural engineers as these can be very complex and care calculations regarding load bearings will need to be taken into account.  There are always thing that are and are not possible, the engineer will explain these to you.

 

Planning Permission and Legal Requirements

When you take the decision to build, or indeed renovate, alter use or extend a property you will need to consider the aspects of :

Planning Permission

• Building Regulation

These will vary according to where you are so you will need to research this area carefully so that you do not break any laws.

All self builds and the majority of building projects which involve conversions or extensions will require planning permission. Planning Permission consists of national regulations.

 

Editors Note: “England and Wales have one set of regulations while Scotland another) but these are administered by the local authorities or if the property falls within the National Parks by the Park Authorities.  You really must ensure that proper permission is granted no matter where you are located.  Failure to do so my result in your building being demolished and you facing a heavy fine or even imprisonment.”

You will find that planning permission varies on the location.  Each planning office will interpret the law differently.  Laws are sometimes vague and from the outset may seem unhelpful.  However, statutes are written this way to allow for greater flexibility of interpretation. It provides each user with way of producing a working law to their area requirements.  Laws are always subject to debate and if you feel that your application has not been fairly examined then you should appeal.

The National planning guidelines will give you an indication of whether you need planning permission or not and which minor works you can carry out without permission.
Remember: It is essential that you speak with your local planning office so that you have relevant information to the area in which you wish to build.

 

Outline Planning Permission

Outline planning permission (OPP) is simply permission for the principle of development on a site, for example a 3 bed house. This means that the details of the size, dimensions, materials and access can be decided at a later date. If a plot is granted OPP, you will still need to make a supplementary application for full planning permission at a later date and no building work can be undertaken on OPP alone. OPP status is usually valid for three years at which point reapplication will need to be made.

 

Detailed Planning Permission/Full Planning Permission

Detailed (or full) planning permission (FPP) outlines exactly what is going to be built including dimensions, room layouts and building materials. As soon as FPP is granted building work may commence. Sometimes conditions of approval will be attached and these must be complied with during the project. Detailed planning permission is valid for three years.

Note the above will no doubt change if you live outside the United Kingdom.  Check with your local planning office.

 

The Planning Process

The precise process in the United Kingdom will depend on your Local Authority. Again this will differ depending on which country you reside.  Here is the general process for the United Kingdom:

Once the Local Authority receives your planning application they will checked to see if it is correct. If there are any mistakes your application is usually returned.

The application once correct and verified will be entered on a statutory register. Once this occurs the Local Authority have an 8 week period in which the application should be considered.Depending on the complexity of the application the allocation of application is either sent to a planning officer or for committee consideration.

There then follows a period of public consultation about the application. The extent of this will depend on the impact of the development and the type of area but it will always include local neighbours. This process normally last 3 weeks.  This process gives the local community a chance to oppose any planning applications if they feel the building may in some way be detrimental to the area.

Once the Local Authority has received all the necessary responses, the Planning Officer will assess the proposal against the local authority planning policies. The Planning Officer will then make a decision regarding the application or a recommendation for the planning committee.

If there is a problem with your application, the Planning Officer may contact you to try and resolve it. It is more likely though that it will be refused. You will then need to re-submit an amended proposal or appeal against the decision.

Remember: If you plan changes to an existing property you may need to consider other regulations and consents including the following:
·  Conservation Areas (protection of property and fences, walls etc)
·  Tree Protection Orders (protection from removal and alteration)
·  Rights of Way (protection for rights of way from development)
·  Listed Building Consent (consent to demolish, extend or alter)
·  Protection of Wildlife (eg protection of bats living in the roof)

 

Building Control Regulations and Standards

When you plan to build, extend or alter a property you will generally need to consider: Building Control (or Regulations) and Planning Permission.

Nearly all building projects will need to comply with Building Control (known as Standards in Scotland). These controls are in place to ensure the health and safety of people using buildings and to provide: Energy Conservation and Access.
 
Building Regulations are national regulations (i.e. England and Wales have one set of regulations, Scotland another) but are administered by local authorities. To comply with them, you, your builder or architect should contact the local authority Building Control Officer. The officer will send you a form to complete which must be submitted with details and drawings of the work you wish to carry out. Once submitted you will be either receive Approval or a request for further information and details.

Once the Building Control Officer is satisfied with your plans you will receive Building Control Approval (or a Warrant). This process usually takes approx. 6-8 weeks. Once the building work is completed, it is likely that the Building Control Officer will want to inspect the work to ensure that it complies with the approval granted.

 

Make sure you have insurance

During the construction you will need adequate and appropriate insurance cover. This will protect you and must meet the mortgage lenders approval. While the list below provides details of what you will need to cover, it may not be necessary for you to obtain the some or all of the insurance yourself.  If you are employing a builder to manage the entire project it is likely that they will have the necessary cover for Employer’s Liability.  There are specialist insurance brokers that supply an ‘All Risks Policy’. 

Remember: Carefully consider what insurance you will need.  Consult your lender, architect and builder. Make a lists that is approved by all three and then obtain the appropriate cover. Insurance Cover…

Contractor and third party claims

To protect yourself against claims for injury or death of people working on your site or any other third party.

Employer's liability insurance

To protect yourself against any claims in your role as a building employer.

Site and Materials

To protect yourself against loss, theft or damage of building materials and your partially completed house.

Equipment

To protect yourself against loss, theft or damage to equipment on site.

 

Structural Warranties and Guarantees

Lenders generally require that newly built houses have a structural warranty and guarantee. It is general practice for builders of new homes to offer a 10 year structural guarantee, as this is usually a requirement for any mortgage. These guarantees are essentially a ten-year insurance policy which covers the home owner against physical damage to the property caused by a defect which results from the builder failing to construct it to the required standards.

Organisations who provide such guarantees include the National House Building Council (NHBC) and Zurich Mutual. A new scheme has also been launched by LABC (Local Authority Building Control).

NHBC Solo for Self Build

NHBC's Solo for Self Build is a 10-year warranty and insurance policy, designed exclusively for individuals who want to build their own home (or contract a builder to carry out all or part of the work), and live in it themselves.

LABC Self Build Warranty

Designed specifically for individuals building their own homes - both new build and conversions. Quality is rewarded through competitive premiums.

Zurich Building Guarantee

Zurich Building Guarantee provides both Building Control services and new home warranty products for newly built homes and major refurbishments for sale or for rent. Zurich offer a range of house warranties including one specifically for self builders, known as the Zurich '10' policy.

 

Reclaiming VAT on your build

One of the advantages of self build and some conversion projects (as opposed to house extensions) is that you reclaim most (but not all) of the VAT you have incurred in building your house. This is because new houses are zero rated for VAT purposes. However to ensure that you can make this claim you must be well organised and prompt.

Remember: Carefully read and understand the relevant rules and regulations before you start your project otherwise you may find yourself ineligible to claim. Also keep an eye out for any changes to the rules during your project.

HM Revenue and Customs

All VAT reclaims are handled by HM Revenue and Customs (HMRC). You need to find VAT Notice 719, which explains in detail (27 pages) how HMRC operates the self build VAT scheme. The summary below should only be regarded as a general guide.

Important: You must read the original Notice 719 for full details.

 

Who is entitled to make a VAT claim under the 'DIY Builders and Convertors Refund Scheme'

You can claim if you are a DIY builder or convertor of an eligable building. It makes no difference whether you are building the house yourself or employing builders/contractors to do it for you.

What construction and conversion projects the Refund Scheme applies to

The scheme is designed for (a) newly constructed residential building built from scratch for non-business use and (b) conversions of existing non-residential buildings to residential use.

What can I reclaim VAT on?

building materials and permanent fixtures eg bricks, windows, CH; labour. Can not claim on removable items such as electrical appliances, carpets and curtains. Can not claim on professional services such as architects, solicitors and surveyors.

What records do I need to keep?

VAT invoices. Ensure that you receive a VAT invoice - a simple sales receipt will not do.

Is there a time limit on my claim?
Yes. You must claim within 3 months after you have received the completion certificate from Building Control.

How do I claim?

As of Feb 2007, the information you require from HMRC is in two places - information and forms - see below for HMRC details

 

Getting Useful InformationThere is a lot of information available and it is easy to get lost in all of this.  Here we recommend the following:

See our Book Store