Managing your Budget and Securing Finance for Self Build Agenda   The Basics !  !  !  Establishing your Budget Key Elements to Consider Budget Management   Funding your Graven Hill Self Build !  !  !  Funding Options Types of Stage Payment Mortgages Understanding Lenders Borrowing Requirements   Questions Establishing your Budget Total amount available to spend on project overall   Own Funds   Assets   Borrowing Key Elements to Consider Cost of Land – Purchase price and associated costs Build costs – Materials and Labour These need to be planned out down to the smallest detail. And, don’t forget the hidden costs! Budget Management               Land/project purchase Build programme – system type Purchase terms Invoice timings Credit terms available Unexpected expenses Ongoing living costs It’s vital that cashflow is matched to each project stage – to ensure adequate funding available throughout project. Funding Options   Cash   Self Build Mortgage !  Released in stages !  Payments for land and build   Raising funds on other assets !  Typically using equity in an existing property Self Build Mortgage Types Two types of self build mortgages – Defined by WHEN you get the funds for each stage Traditional Stage Payments       Up to 85%* of the cost of plot Up to 85%* of the cost of build Money in agreed stage payments subject to valuation, in arrears Advance Stage Payments (Accelerator)           Created by BuildStore Up to 85% of the cost of plot Up to 85% of the cost of build Money in guaranteed advance stage payments Ability to stay in current home as you build Accelerator eases the pressure of cashflow during the building projects. Building systems, such as Timber Frame / SIPS/ ICF etc. are now more widely available as choices for Self Builders because Accelerator provides the “up front” funds needed to pay deposits and indeed the cost of these systems, normally required pre delivery to site * Higher lending percentages exclusive to BuildStore What Can Self Build Mortgages be used For Custom Build Shell Scheme Serviced Plots •  Funding for all three options available on a stage payment basis for both Shared Ownership and Open Market Purchase •  Lending available of up to 85% of the purchase of plot/shell/property, and 85% of costs to complete the property for Open Market •  Lending available of up to 85% of Share of purchase of plot/shell/property, and 85% of Share of costs to complete the property for shared Ownership. Understanding Lender Borrowing Requirements Affordability Considerations       Income Outgoings Life Style expenditure Complex Lending Criteria         Construction Types Lending limits Stage Payments Timings It’s a specialist industry, and you should always arrange your selfbuild borrowing through an expert, whole of market adviser, such as BuildStore Any Questions? Raymond Connor & Rachel Pyne