New service to boost self build housing

A new service which can link self builders up with suitable local contractors has been launched by the Federation of Master Builders (FMB), with the support of the National Custom and Self Build Association (NaCSBA).

This new service is the first of its kind in the UK and can be accessed via links from the Self Build Portal, NaCSBA’s comprehensive online resource for self builders.

The FMB’s Find a Self Build Contractor service is free to use and draws on a database of over 1,500 local contractors with design and build and self build capabilities.

Brian Berry, Chief Executive of the FMB, said: “Interest in self build solutions is growing stronger every day and the government is now putting in place policies which should help more people to realise the vision of building their own home.

"As this happens, self builders will need a pool of capable and experienced contractors and a trusted means of finding the right one. That’s why the FMB has created this service and we’re very pleased to have been able to team up with NaCSBA to deliver this through the Self Build Portal. This is the product of the building industry and self build representatives working together to facilitate the growth of self and custom build, which will improve the choice available to customers in the new homes market.”

Michael Holmes, Chair of the National Custom and Self Build Association, sad: “Around half of all self-builds in the UK are carried out by main contractors on behalf of a private client. This service is the first of its kind to enable self builders to get in touch with those contractors who can offer them the specialist service they require. It should save self builders time and effort, is more likely to result in a better 'match' and, of course, it is a great way for FMB members to find the right clients.”

Richard Bacon, MP for South Norfolk and Chairman of the All Party Parliamentary Group on Self-Build, Custom Build and Independent House building, said: “Finding a suitable builder can be a headache for many self builders who lack first-hand experience of the construction trade. This is where the FMB’s ‘Find a Self Build Contractor’ service can help you.

"Every builder belonging to the Federation must have satisfied a comprehensive set of background checks and also agreed to a rigorous Code of Practice and dispute resolution, offering peace of mind to potential clients. I would highly recommend that any prospective self builders draw on the Federation’s knowledge and experience to help complete their dream home.”

House! What House?

Sitting here relaxing, looking out on to my patio and garden beyond through the French windows, I realise what a fortunate person I am. 

It’s not because I am incredibly wealthy or that I have been amazingly lucky with things in life but sometimes I feel it is important to sit and think about some of the advantages that surround me. 

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Of these there are many, but one of the largest has got to be my decision to invest in my own property.   It’s not a massive property, just a standard middle of the road, three bedrooms, two bathrooms, (one that I added after being there for a dozen years and having two children who always wanted the bathroom when I was up to my ears in water), kitchen, lounge and dining room.  Now in this case it is defiantly a time where the term ’quality is more important then quantity’ comes into force.  Although it may be handy having a large extension built to the rear of the property and giving the Wife a kitchen to be proud of plus addition space on the first floor I realise all this comes at a price.  By this I don’t just mean financial, although this is a large consideration, but the many other things that additional living space will bring with it.  Such menial things like cleaning, heating and decorating to name a few.  To top all this comes the compulsory maintenance that will inevitably show its head at any excuse.  Be it a brand new room that took many hours of planning or not, it is certain that the idea of changing the layout when everything is in place will be mentioned, which will involve yet more work.

With all this being put to one side I feel that my house is defiantly my home.  It is of a size that is controllable with regard the cleaning and heating while I have been lucky enough to be able to afford to maintain it to a level that stops it from collapsing around my ears over the years.  I feel that one can always have a bigger home but along with that it brings its own problems.

So what is all this waffle about you may ask?

Well, back in the day, when I decided to invest in a property as a single guy, it was at a cost whereby I could afford to find the deposit within a sensible time period, followed by regular monthly payments over the next 25 years.  Now I have come to the stage where it is nearly paid and completely owned by myself – Super Stuff!

Which brings me to the reason behind my out-burst!

Just a couple of weeks back I was around my friend John’s house having a nice family meal.  Sitting aside of me was his Daughter, Julie of 22 years who inevitably found our conversation slightly boring.  To try to eleviate this problem I started a conversation that involved the relationship between herself and her Boyfriend of 5 years.  When do you see yourself moving in together was one of my questions?  The answer came back – with the cost of property around here I don’t know if we will ever be able to afford a place of our own so I can see us renting somewhere instead. 

‘But rent is just dead money’  I said.  Well we have been saving for the last three years and don’t seem to be getting anywhere plus the cost of property is getting dearer and pulling it further out of our grasp.

When leaving my friend that evening I couldn’t help but feel sorry for the younger generation and the realisation that a sensible future is getting harder for them to achieve.  The reality is unless they have a massive deposit plus two good wages coming into the pot each month it isn’t going to happen.

I mulled this situation over during the next couple of days when suddenly the penny dropped!  I rushed back to my friends house and confronted his Daughter and Boyfriend.  In this area a property can be obtained for around £100k but when counting the finances they could only afford up to £80k!

How would you feel if we can get you a property of your dreams for a figure you can sensibly afford I said?  But we can only afford up to £80k which is £20k less then anything that is likely to stand up for the next 30 years!

That’s fine I said.  You just leave it to me and I’ll show you how!  I will lead you through the maze and out the other side.  Not only that but I will get you a brand new property of your dreams designed especially for you!

And this is what I am going to do for you too.  I will show you how you can have the place you thought was out of your reach without breaking the bank.

See you in my next article!  I can’t wait to begin and I know you can’t either!

Stuck in a rut on the housing ladder!

With it becoming increasingly difficult for the first-time buyer to take their first steps on to the housing ladder, I cannot help but wonder where things are going.  “I can’t possibly afford a mortgage with the interest rates being as much they are” is a fairly standard situation.  This seems to be the same in all parts of the Country and the truth is things will only get worse as the interest rate is at the lowest level it has ever been and even more likely to increase over the next year or so. 

The average first time buyer isn’t generally too fussy with high expectations on what they would like to live in but looking at what is out there and the cost of the payments that are expected to be found, I can quite see what their predicament is all about.  Maybe this is just to reduce the disappointment factor!

The gap between what is affordable on the housing ladder for new buyers seems to becoming larger as each month passes.  Naturally, this is purely a supply and demand situation and, with the population getting bigger there is a call for more and more new houses.  Due to this need, with several people being after the same properties, the owners can naturally ask for higher fees.   It seems that the younger generation are facing a “double whammy” as the price of property continues to rise quicker than the average wage which is putting owning their own property further out of their reach.   

Recent research carried out by the respected analysts, Oxford Economics, project that the average house in England will rise from £245,879 this year to £331,387 by 2020.  In London this figure is expected to rocket from £452,400 up to £647,500 – 18 times the average London wage!

At the other end of the spectrum, the £146,000 average price in the north-east will rise to £171,400.

The National Housing Federation, which commissioned the forecasts, have warned that the widening gap in the supply of housing will mean that “an entire generation will be locked out of home ownership with nowhere to go”!

Even rented properties are expected to jump from £8,691 this year to £12,059 by the end of the decade!  The realisation that this is the only way couples will habitat in the future if something is not done about it is fairly evident to all.

“Goodnight, John Boy”

With rent costs being even higher it is not surprising that more and more are staying at home with their parents into their 30’s or 40’s.

Although there are several alternatives to buying a property, the one that is easily slipped into is being termed as “The Waltons Effect”!  This is because many young couples move into one of their parents homes while they save for a deposit.  This lifestyle becomes the norm as the reason they moved in gets put further on the “not so pressing” list.

In a report in the Daily Telegraph it was stated that “It might not be everyone’s dream scenario, but elderly parents in need of care and with rising household costs, means we are now seeing several generations of the same family living together”!

Lots of couples are realising that there are also many advantages with living with your parents.  In many of cases it is very convenient to have an ‘in-built’ baby sitter that can be relied on which wouldn’t be available should you live separately.

However, there are other things to consider when the idea of a ‘Granny annex’ gets some discussion especially when there is more than one sibling to be considered.  What happens when the house is eventually sold and your parents have paid for the annex themselves?  Would your Brother/Sister expect you to sell the property to enable them to have their inheritance?

There is also the matter of Capital Gains Tax, where an annexe is considered a separate dwelling and therefore the subject of an unexpected tax bill when the house is eventually sold.  You may also need to get advice on inheritance tax and how the house will be structured when it is sold.  Will it be classed as a single dwelling or not?

Another concern is if your relationship breaks down with your partner or anyone involved in this transaction decides they want to sell.  As with all things, they are fine at the onset but things may well change as time goes on.   'Food for thought'!

Self-Build-Finance Your Dream Home

Having your very own, custom-built dream home is a lot easier and cheaper than you might think. Although building your own property involves a great deal of planning and hard work, it's within the reach of most people, especially now that many mortgage lenders will lend on self-build properties.
It's generally much cheaper to build your own house than it is to buy one pre-built. The average cost of a self-build home is approximately £150,000. The return on investment can be much greater too - as soon as it's built you can expect an increase in value of 25-30% on what you paid to built it.

One of the major hurdles to overcome when considering a self-build project is obtaining the necessary finance. Some people opt to release equity from their existing mortgage, although this may not raise enough to fund the entire project - it depends on the value of the property against the current mortgage on it.

If this isn't a feasible option, another possibility is to take out a second mortgage. Many lenders offer specially tailored self-build mortgage products. If you go down this route, you'll need to decide what to do with your existing property. Work out whether you can afford to have two mortgages on the go during the build, to enable you to live in your current house until the new one is ready - or indeed whether there are any mortgage providers prepared to lend you a second mortgage. This can be a convenient way to finance the project, as it means you only have one house move, and mortgage repayments are often cheaper than renting.

If you can't afford two mortgages, the other options are to sell your current house and move into rented accommodation, stay with family or friends or even buy a mobile home or caravan to live on the building site. The latter may not be a suitable arrangement if you have a young family.
Self-build mortgages tend to have similar terms and conditions to conventional mortgages. You could have either repayment or interest only, and the interest rates available (fixed, capped, variable, etc) tend to be the same. The two main differences between self-build mortgages and conventional mortgages are that the maximum loan-to-value that will be provided is normally no more than 75% for self-build, as opposed to up to 95% or even 100% for a conventional domestic mortgage, and the funds are released in stages instead of all at once.

The way in which the funds are released depends on the provider. It's normally at key stages of the construction for example the laying of the foundations, when the building is wind and watertight, when the roof is complete, but some lenders release the funds upon completion of the stage, and others in advance. The issue with the former, arrears stage payments, is that the money is not available to fund the construction in advance, so it can cause cash flow problems. Some lenders offer advance stage payments, though, which makes it much easier to keep the cash flowing as the project progresses. Whichever way the lender operates, they will almost certainly want to send a surveyor or valuer to check on the progress of the build before they release each payment.

Sometimes up to a third of the cost of a self-build property is the purchase of the land. There isn't much spare land in the UK so prices are at a premium, particularly in popular built-up areas. Some lenders will be prepared to lend for land purchase, others won't, or will provide it as a separate loan, so be sure to check this out when doing your research.
Most lenders will want to see the architect's drawings and planning permission before agreeing to lend you any money, as well as a schedule of works - some lenders will put a time limit on the build, often one year.

As well as being a cheaper way to buy a house, self-build has other financial advantages. The cost of building a new home is zero-rated for VAT purposes. You also won't be subject to capital gains tax on the capital you make from selling the property, and there's tax relief for financing the new build while remaining in the existing home. Many self-build projects are also exempt from stamp duty as this applies only to the purchase of the land - unless the land price is over £60,000.

If you're able to arrange funding to build your own home and are confident that you have the management skills to keep on top of the building work as it progresses, then self-build could be the ideal way for you to get the home of your dreams without it costing an arm and a leg.

Article Source: http://EzineArticles.com/436383