Mortgages for Land

[Howitzer]

As i'm not in the UK at the minute but am an impatient git I have a question.

We are due to see a mortgage advisor in the new year about a self build project we are intending to do.

I'm curious, do mortgages for just the land alone work in the same way as when buying a house or do they need all the information for the house you intend to build first?

Our plan was to get searching for the land as soon as possible as we don't want to miss out on somewhere suitable and within budget if we are not ready for the project to start yet.

Dave!

[XJSJohn]

where are you residing ... you could be in a good position to set up an international mortgage that could make for a very good deal.


ETA no idea about actual land / paperwork requirements sorry

Edited by XJSJohn on Thursday 13th November 04:13

[Howitzer]

I'm based in the UK but working in Pakistan at the minute, so it will have to be a regular UK mortgage now from what I understand?

Dave!

[XJSJohn]

probably right.

Just a thought.

[Howitzer]

If you are correct though, i'll have a Lancaster flown by a herd of playboy bunnies to deliver you a few refreshing cold beers.

Dave!

[whirligig]

Think you would have to have at least Outline Planning Permission to get a mortgage for land - some useful info here:

http://www.mortgages.co.uk/self-build/self-build-m...

[satans worm]

Howitzer said:

As i'm not in the UK at the minute but am an impatient git I have a question.

We are due to see a mortgage advisor in the new year about a self build project we are intending to do.

I'm curious, do mortgages for just the land alone work in the same way as when buying a house or do they need all the information for the house you intend to build first?

Our plan was to get searching for the land as soon as possible as we don't want to miss out on somewhere suitable and within budget if we are not ready for the project to start yet.

Dave!

We used Buildstore as a broker and Skipton as a lender, you will need to present to the lender a rough drawing/ outline of what you intend to build complete with budget and finance stages, even though you might not build it for a while!

Basicaly, if you get the upfront payment type mortgage you essentially take out an insurance policy thay gives you 2 years to complete the project, you can take longer but you will need to pay for more insurance.

Does that help

[satans worm]

satans worm said:

Howitzer said:

As i'm not in the UK at the minute but am an impatient git I have a question.

We are due to see a mortgage advisor in the new year about a self build project we are intending to do.

I'm curious, do mortgages for just the land alone work in the same way as when buying a house or do they need all the information for the house you intend to build first?

Our plan was to get searching for the land as soon as possible as we don't want to miss out on somewhere suitable and within budget if we are not ready for the project to start yet.

Dave!

We used Buildstore as a broker and Skipton as a lender, you will need to present to the lender a rough drawing/ outline of what you intend to build complete with budget and finance stages, even though you might not build it for a while and dont even have planing permission for it!

Basicaly, if you get the upfront payment type mortgage you essentially take out an insurance policy thay gives you 2 years to complete the project, you can take longer but you will need to pay for more insurance.

Does that help

[Howitzer]

That's excellent, exactly what we needed to know.

Is the cost of the build taken into account when buying the land?

If we found a plot which wuited our needs early on then my plan was to pump as much money in overpayments onto this mortgage while finishing the research, labour we intend to do ourselves before starting the actual building of the house.

Dave!

[satans worm]

Howitzer said:

That's excellent, exactly what we needed to know.

Is the cost of the build taken into account when buying the land?

If we found a plot which wuited our needs early on then my plan was to pump as much money in overpayments onto this mortgage while finishing the research, labour we intend to do ourselves before starting the actual building of the house.

Dave!

Rather than pump money into the overpayments I think you would be better off putting it in the bank as I will garantee you will over run on costs, no matter what contigency you may have, and it will be easier to use this than withdraw it from the mortgage at a later date

[anonymous-user]

Here you go .... all you need to know

http://www.buildstore.co.uk/myproject/fst-centre-p...

[GreatGranny]

Why don't you wait until you come back before sorting the mortgage. If you've got 2 years to start the works, part of that time will be wasted while you are in Pakistan.
It may take you more than 2 years to find a suitable plot.

[anonymous-user]

GreatGranny said:

Why don't you wait until you come back before sorting the mortgage. If you've got 2 years to start the works, part of that time will be wasted while you are in Pakistan.
It may take you more than 2 years to find a suitable plot.

I am looking for a plot right now and have been for about 4 months. Interestingly as the economy gets worse more and more developers (and "would be" developers) are selling off stuff as they go broke or need the cash! Whereas I was getting offered nothing 4 months ago I am now getting a call a week and at least 2 plots per week offered to me. Things are only going to get better for potential plot purchasers over the next 6 months so I would say it's a great time right now to buy.

That said - great plots are still few and far between!

[satans worm]

garyhun said:

GreatGranny said:

Why don't you wait until you come back before sorting the mortgage. If you've got 2 years to start the works, part of that time will be wasted while you are in Pakistan.
It may take you more than 2 years to find a suitable plot.

I am looking for a plot right now and have been for about 4 months. Interestingly as the economy gets worse more and more developers (and "would be" developers) are selling off stuff as they go broke or need the cash! Whereas I was getting offered nothing 4 months ago I am now getting a call a week and at least 2 plots per week offered to me. Things are only going to get better for potential plot purchasers over the next 6 months so I would say it's a great time right now to buy.

That said - great plots are still few and far between!

Took us over 2 years to find our plot, just got offered the rubbish the developers didnt want, just got lucky on the one we bought.

[anonymous-user]

satans worm said:

garyhun said:

GreatGranny said:

Why don't you wait until you come back before sorting the mortgage. If you've got 2 years to start the works, part of that time will be wasted while you are in Pakistan.
It may take you more than 2 years to find a suitable plot.

I am looking for a plot right now and have been for about 4 months. Interestingly as the economy gets worse more and more developers (and "would be" developers) are selling off stuff as they go broke or need the cash! Whereas I was getting offered nothing 4 months ago I am now getting a call a week and at least 2 plots per week offered to me. Things are only going to get better for potential plot purchasers over the next 6 months so I would say it's a great time right now to buy.

That said - great plots are still few and far between!

Took us over 2 years to find our plot, just got offered the rubbish the developers didnt want, just got lucky on the one we bought.

As I said "great plots" still far and few! My expectation was for 2 years or so but I think the next 6 months may be interesting - especially coming up to corporation tax time when, I've been informed, more plots should come on the market as developers need the cash.

[Howitzer]

Is this corporation tax time the normal tax year ending in April?

Dave!

[anonymous-user]

Howitzer said:

Is this corporation tax time the normal tax year ending in April?

Dave!

No it's to do with your accounting period. The accountant of a good friend of mine just happens to know that many will be due up in the next 6 months where I am!!

[Howitzer]

Ahh ok, thanks.

Dave

[monthefish]

garyhun said:

I am now getting a call a week and at least 2 plots per week offered to me.

Who's offering these plots?

[anonymous-user]

monthefish said:

garyhun said:

I am now getting a call a week and at least 2 plots per week offered to me.

Who's offering these plots?

Estate Agents I've known for the last few years. Now I'm renting and they know I'm serious it's started to pick up over the last few weeks!