Self-architecture - your financier of the Dream House

Have your own dream is for an easier and cheaper than you might think. Although the construction of its own implies a great deal of planning and hard work, it is within the range most people, especially now that many commercial mortgage lender will provide free construction of properties.

In general, is much cheaper to build your own house to buy pre-built one. The average cost of an auto-build your house around £ 150,000.

ROI can also be much larger - once it is built can create increased value of 25-30% in anticipation of what you paid.

One of the main obstacles to overcome when considering a free architectural project gets the necessary funding. Some people opt for the version of the equality of their existing mortgage, although this can not raise enough for full funding of projects - which depends on the value of holding down the existing mortgage on it.

If this is not a viable option, an alternative take a second mortgage. Many lenders offer self-made architecture of mortgage products. If you are bottom of this route, you will have to decide what about your current holding to do. Work if you can pay two mortgages to take in the architecture, which allows you to remember to live within their power is the door to new smart - or even if there is any mortgage to suppliers willing to provide a second mortgage. This may be an appropriate way to finance the project because it means you only have a house of movement, and the mortgage repayments are often cheaper than the tenant.

If you have two mortgages can not afford to sell their current home other options and move into rental adjustments, stay with family or friends or even buy a mobile home or a caravan to the construction site to life . This latest agreement may not be suitable if you have children family.

The commercial mortgage of self-architecture tend to conditions similar to conventional mortgages to have.

It may or repayment or interest only, interest rates and fees have (fixed, cover, variable, etc) tend to be the same.

Two major differences between the self-construction of mortgages and conventional mortgages that the maximum loan to value will usually not more than 75% for free architecture, as opposed to a maximum of 95% or even 100% to conventional home mortgage, and all funds released at once instead of phases.

The way the funds are released depends on the provider. Usually it is very important in the stages of construction, for example, the establishment of the foundation, when the building wind and water, when the roof is complete, but some donors, the funds for the completion of phase free, and other in advance. The issue with the former, claims the stage of payments, is that money is not available to finance the pre-construction, which can cause liquidity problems. What donors offer payments on the stage of progress, however, making it much easier to keep the money flowing as a project progresses. What how the lender, which will almost certainly want to send a surveyor or valuer to comment on the progress of architecture before they check to each payment.

Sometimes a third of the cost of construction is a self-possession style of the country of purchase. There is not much more ground in the UK so the prices at a premium, especially in areas popular compound. Some donors preparations will be made for the purchase of land for loans, others do not, or will provide the loan in an independent manner, so I'm sure to verify that they are doing their research.

Most lenders of the drawings and plans of the architect wants to see before accepting permission to go for some money to lend, as well as a program of works - some commercial mortgage lenders will have a term of architecture, often still years .

As this is a cheaper way to buy a house, the car-architecture of other financial benefits.

The cost of building a new house with a zero rate for the purposes of VAT. You also no capital gains tax on capital is made subject to sale of assets, and since the tax exemption for the financing of the new, while the construction of the house to stay in existence. Many self-build projects are also exempt from stamp duty only on the purchase of the rules applicable in the country - unless the land price is £ 60,000.

If you can provide additional funding to build their own home and are sure that you have the managerial skills to keep on top Construction work is progressing as it should, then the free style building could be the ideal way to you your dream home is without a weapon and one leg