Self Build Help (finance)

[Hobo]

We are considering building another house in the grounds of our currently family home, as could section off an area without impacting the value of the current house much, and obviously raise significant monies in the process.

The area in question is triangular(ish) in shape, measuring 28 metres wide (roadside) by 50 metres deep (it goes back to around 5 metres wide at the back). It already have an entrance from the road, which may move slightly, but nothing major, and there are no issues with trees, etc, so can't see any reasons for concern with regards to planning.

The initial plan was to build the new home to sell, but the thinking now is likely to build for ourselves and sell the current house. Its currently likely to be around 2750-3000sqft, so the obvious sell is it would be designed to exactly how we like. Value wise, it would be likely worth between 800k-1m upon completion.

I've built a few houses in my time, although stopped in 2010, so am a bit out of touch in respect of financing. I used to use Dunbar for development finance and the like, and assume as I already own the land that they would happily fund the entire build cost as would be taking a charge on the land as security.

Does anyone have any recommendations of development finance ? It aways used to be 1.5% in, 1% out, and based on x% over libor. Is this similar these days ?

Any help would be appreciated.

[Lefty]

We looked into something similar and came to the conclusion it was actually easier and offered more flexibility to borrow against the equity in the existing house and pay cash for the construction.

Then sell your existing house, clear the mortgage and you’re done.

We didn’t actually do it cause we decided we didn’t want neighbours and we’re antisocial AF

Edited by Lefty on Sunday 22 September 21:30

[emicen]

We looked at bridging recently, rates were between 0.65% and 0.85% per month