Funding Purchase Self Land

Funding for the land purchase will become available once Outline Planning Permission has been received and the funding for building costs becomes available once full Detailed Planning Permission has been granted. These lenders will lend you between 25% and 80% of the land's value in addition to between 65% and 95% of the building costs as part of funding purchase self land.

During the build stage, interim valuations will be made prior to funds being released and all new builds must have a suitable structural warranty such as an Architects Supervision or NHBC Guarantee. Before any funds can be released, site insurances must be in place.

Any money for construction is paid in arrears usually, once key stages of the building work are completed. There are several banks and building societies offer mortgages to self-builders.

With the progress that has been made in self build lending, and with the flexibility of the Accelerator Mortgage in particular, there is now no need to sell first and then buy and build. More self builders are therefore staying put and using sensibly structured finance to let them complete their new home before realizing the capital from the sale of their existing property.

You should also get a solicitor to draw up contracts between yourself and your builders. Land takes up to 35 per cent of the total cost. You need to get outline planning permission - most lenders require it before offering a mortgage. Detailed permission can wait until later, although again lenders will want it before releasing funds.