Financing new build property: how does it work?

THE SCENARIO

Your home is one of the most important investments you’ll make in life, and it should be a perfect reflection of your tastes and needs. If you’re purchasing property, compromises will usually have to be made. But what if you don’t want to compromise—what if you want to build your dream home from scratch? If you’ve got Grand Design ambitions, you’ll need more than just an architect and a reliable builder. You’ll also need to research how financing new build property works.

Self-building a residential property is a huge commitment both financially and emotionally. This could be your forever home, so every detail should be perfect. It’s therefore important that as well as getting every detail of the build right, you also secure the best possible development finance for your project. This is something that Enness can advise you on.

Firstly, it’s important to understand that self-build mortgages are different to traditional mortgages. The money is usually advanced in stages; valuers will visit the site at various points, ensuring that each stage has been completed to minimise their risk. We can work with you to find you a suitable self-build mortgage, and advise you further on how this will work.

We can also guide you through a variety of potential challenges. For example, securing a self-build mortgage is particularly challenging for those with unusual income structures. Our high net worth customers often fit into this category. If you have a non-traditional income, you may need an experienced broker to secure you the best deal.

We can help clients with financing new build property when they need to work in a short timeframe. For example, we have had clients purchasing land valued at over £1million, who needed to move quickly to secure the plot—but were waiting for another property to sell in the meantime. We were able to secure a very quick turnaround for their self-build mortgage to ensure they could proceed to build their dream home.

Another event that has motivated several previous clients to seek our help is when they need finance for a self-build halfway through a project. This certainly adds an additional layer of complexity, as most development lenders don’t like to enter a project halfway, as they have no initial control over the direction of the project. However, this is certainly something that we are able to look at, and have a track record of helping clients to secure funding halfway through a development.

If you’re looking to begin building your dream home or need further guidance on financing a new build, contact our experienced team today. We look forward to hearing from you.

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