Expert Advice Finance


next tranche of funds. At the end of the build, they will require either a structural guarantee in the form of an approved warranty for the completed dwelling, or proof that the build has the appropriate professional certification at each stage. BuildStore works with leading


lenders and has access to over a dozen exclusive products on both an advance and arrears basis that you won’t get anywhere else, and can professionally and properly assess your project and cash flow requirements to recommend the right funding solution and product for your circumstances.


Managing Your Budget Understanding costs, establishing


a budget, and calculating your cash flow are amongst the most important steps before commencing a self build or renovation project. To establish your cash flow, you need to know your project schedule and the costs incurred for each stage.


Building societies that will consider ‘self-build’ finance


Bath Building Society Beverley Building Society Chorley and District Building Society Cumberland Building Society Darlington Building Society Dudley Building Society Earl Shilton Building Society Ecology Building Society Hanley Economic Building Society Harpenden Building Society Holmesdale Building Society Ipswich Building Society Loughborough Building Society Mansfield Building Society Melton Mowbray Building Society Monmouthshire Building Society National Counties Building Society Newbury Building Society Norwich & Peterborough Building Society Principality Building Society Saffron Building Society Scottish Building Society Swansea Building Society Vernon Building Society Source: Building Societies Association


62 Self Build Homes | April 2012


Before you even start the building


work, you will incur costs, such as legal fees, site surveys, planning and building regulation fees, site insurance and structural warranty premiums, and potentially a stamp duty fee, so ensure you factor these in to your overall budget – allow 5-10% Your plot will probably be


around 40% of your total project budget, leaving around 50% for the construction phase itself, to be spent on labour and materials. The breakdown of budget and cash flow requirements will vary according to your method of construction and your own financial input into the project, but as a guide, your costs will


be spread throughout the stages like this: ✓Preliminary costs, Groundworks & Foundations: 20%


✓Wall Plate Level/Frame erected: 13% ✓Wind and Watertight: 22% ✓1st fix: 12% ✓2nd fix to completion: 33% ✓You should also build in at least 15% as a contingency.


When it comes to arranging your


mortgage, the lender will agree an overall amount that they are prepared to lend towards the land and the construction costs. In order to establish the amount of each stage payment, the lender will need to approve your costings and cash flow, and will then agree the stage payments based on the key stages of your project, as outlined above.


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