31 May 2017
The Society will consider lending to finance self-build projects. The maximum LTV for self build mortgages is 80%.
The earliest point the Society will consider lending for a self build is where the foundations have been laid and have been inspected by Building Control.
We will not consider it acceptable to lend on a site purchase only.
For all applications to finance a self build project the Society will require the following additional documentation:
- Copy of site map;
- Copy of Planning Permission/Building Control documentation*;
- Drawings/plans;
- Details of building warranty provider (e.g. professional consultant inspecting the new build property).
*There should be at least 1 year remaining on the Planning Permission.
Costings for the build will also be required.
The site must be registered in the same names as the mortgage applicant(s).
The Society will not proceed where there are restrictive covenants on Title.
The Society will take into consideration the access to the property, the proximity of family land/agricultural or other outbuildings, the cost of the build, the applicants’ other resources and the period of time the build will take to complete.
The advance will be released in pre-agreed stage payments. The first stage payment will only be released when the stage of construction has at least reached the stage where the foundations have been laid.
If a Professional Consultant is inspecting during construction of the build the Society will need to confirm if they have appropriate experience, the required qualifications and the necessary level of Professional Indemnity Insurance in place. A copy of the schedule of insurance is required for approval. The Professional Consultant must also agree, before the Society’s Offer is issued, to providing the Society with a final certificate, in the Society’s required wording, prior to release of the final stage payment.
The Society will require a copy of the valuer’s stage inspection report prior to release of any agreed stage payment. Prior to release of the final stage payment, we will also require a copy of the Professional Consultant’s final certificate, in our required wording.