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  • Property-a-holics

    Art of the deal- scrutinize my plan

    Thanks Heather, Yes the valuations will determine how successful the project turns out, there's contingency built in but obviously being able to pull out less will slow stage 2/building deposit for the next house. Have you found surveyors to generally undervalue for safe measure?

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    There is no way you are going to build a detached house for 60k. Unless you're actually physically building it yourself (with loads of free labour from dad and your/his mates), a more realistic budget is around £1500 to £1800 per square metre (or £2000 in London).

    How about working out whether you can just sell on the plot once you've got planning permission? You may find the risk/effort vs reward ratio is better doing this.  A buyer who doesn't know build costs is likely to overpay for the plot.

    If the house is worth £220k done up with the big garden, it will be worth a fair bit less without.  Your title split for the second house (if you are looking to either sell it or take out a mortgage on it) would very likely not be permitted by your first lender (ask your broker for view on this).  So, your re-mortgage onto BTL mortgage for house 1 would have to happen at the same time as the title split or you need to title split when you buy the house.

    Sounds good deal if you can get the details right, though.


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    Thanks for your reply Rassie,

    60k( assuming VAT free) was the ball park figure for cost + labour discussed with our builder friend, Dad and I would put as much labour in as we could  but this may have been ambitious. Do you have any experience building in the southwest, and did it end up costing close to book figures per square metre?

    I did ask my broker if the mortgage valuer would reduce the borrowing value if the title was split after the fact, but he seemed to think they'd only be interested in the bricks and mortar. Clearly something Id have to look into with in detail



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    Can I give you a bit of advice never use a Ball Park fig when your building a property

    I would suggest if you do add 30% to your ball park fig

    It always costs more then you think believe me

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    Sound advice.I must admit I haven't properly crunched the numbers as there's no planning permission/may end up selling the plot etc. but will keep 30% contingency in mind.

    Am I correct in thinking you have some Build to rent on the go DL?

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    I built two small semi-detached houses in the South West (commenced Q3 2017) and the build cost was around £1,450 /m2 excluding fees (main contractor to shell and then self-managed). I'm sorry to say that I don't think you stand any chance of completing a new dwelling for £60k. Likewise on the renovation front there is very little that can be achieved for £3-5k.


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    Thanks for your insight Bristol1, Ill be sure to take it on board. I'm guessing your self builds  took place in Bristol or there about; did you find the return worth it over say selling the plot on with planning?

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