Home Building Made Simple

Transcription

1 Home Building Made Simple Brought to you by Published by BuildStore Financial Services Ltd T E enquiries@buildstore.co.uk W The essential guide for individual homebuilders Spring 2011 New Year, New Policy, New Home If your New Year s resolution for 2011 is to build your own home, you re not alone and you couldn t have picked a better time is set to be a big year for self build, with Housing Minister Grant Shapps launching an initiative to support the self build sector and encourage more people to build their own homes, the first time any UK Government has developed a policy to support the self build housing sector. Working with members of the National Self Build Association (NaSBA) and other industry experts, the Government will develop an action plan to boost the number of self builders across the country, and address the common barriers aspiring self builders face - including a complex and bureaucratic planning system and regulatory burdens, and the Government is working with NaSBA members, including BuildStore to tackle the issues relating to availability of land and finance. Breaking down barriers Mr Shapps said self build could make a significant contribution to easing the housing shortage if the restrictions are relaxed: I want to break down the barriers that many aspiring self-builders often come up against and make it easier for people to build their own homes, whether on their own or as part of a community effort to build a whole new neighbourhood. The new Community Right to Build will put power in the hands of local people to give the go-ahead to new developments in their area and could open the door to a whole new generation of self builders. Moving Centre Stage The announcement has been welcomed by self build specialists, and founding member of NaSBA, BuildStore. Chief Executive of BuildStore, Raymond Connor, commented: The announcement is great news for aspiring self builders, the construction supply chain, and local economies. This level of support from Government is exactly what is needed to kick start a new revolution of self build homes, and we are looking forward to working with Ministers to develop the action plan and tackle the issues. We have been making the case for self build as a valid housing procurement route for some time, and the current climate has created a unique opportunity for the self build sector. The self build sector has developed significantly in the last decade, and has an established marketplace and infrastructure in place to support anyone who wants to build their own home. The National Self Build & Renovation Centre in Swindon, also a NaSBA member, has been open for four years, and has played a significant role in helping people understand the process of building a house, offering advice, information, and self build courses. Tim Doherty, of the National Centre, said: We have had a burgeoning self build sector in this country for the last ten years, with a dedicated supply chain and infrastructure in place to help self builders, so the announcement of government policy to support this sector is very welcome indeed, and will ensure that more people can take advantage of the expert advice and support on offer when deciding to build their own homes. Mr Shapps wants industry experts to work with his officials to develop an action plan to boost the number of self-builders and address the common barriers aspiring self-builders face, including: availability of land including making public sector land available for house building availability of finance working with lenders to ensure self-building communities can get the finance they need availability of expert support how selfbuilders can support communities looking to build the homes they need, and how those new to self-building can be supported. In February, BuildStore took its place at the first meeting of the Government-Industry Self Build Working Group, attended by Ministers and other industry leaders, which marked the start of the Government s efforts to streamline the self build industry. Inside this issue Reward for Renewables Legal Considerations of buying a plot Securing the right funding Project Protection Working with builders merchants 2011 at the NSB&RC Ask the Experts BuildStore: Complete service for all your project needs Land finding Find your perfect plot, renovation property or conversion project with PlotSearch, the UK s largest and most accurate online database of building plots, renovations and conversions. You can search through 9,000 building opportunities across the UK, and all the sites are regularly validated for accuracy, complete with aerial pictures and maps, and come with Outline or Detailed Planning Permission. Finance BuildStore Financial Services is the UK s leading provider of award-winning tailored self build and renovation mortgages, and creator of the Accelerator mortgage, which releases funds in advance of each build stage throughout the project, giving positive cash-flow. With over a decade of expertise, they can find the right funding solution for your project. Insurance BuildCare Site and Renovation Insurance provides cover for all aspects of your project, including Public and Employer s liability, building materials and tools, personal accidents and legal expenses, to give you complete cover and peace of mind. Materials Trade prices aren t just for tradesmen. With a BuildStore TradeCard you can get access to discounts, special offers and trade prices on thousands of products including plant and tool hire, building materials, roofing, insulation, white goods, electricals, kitchens, flooring and specialist products - absolutely everything you'll need to complete your new home. Education The UK s first and only National Self Build & Renovation Centre, opened 2007 in Swindon, is an impressive 67,000 sq ft permanent exhibition Centre designed to educate, inform and inspire those undertaking a home building project, with a host of unique features, exhibits and a team of independent experts.

2 News & Views Welcome! Welcome to Home Building Made Simple, the newsletter of self build and renovation specialists, BuildStore. If 2011 is going to be the year you create your dream home, you ve come to the right place! Whether you are building from scratch, renovating, converting or improving your current home, you will undoubtedly need all the help, advice and support to get your project off to a smooth start; that s where BuildStore can help offering an unrivalled range of products, services and expertise to help make your home building project simple. Inside this edition of Home Building Made Simple, you ll get ideas, inspiration, help and advice, and learn more about the process and practicalities of building your own home. You can read about the experiences of other homebuilders; get tips on buying a plot of land; learn about project cash flow, plan your year with all our calendar of events at our National Centre in Swindon; and learn about selecting and buying materials. We hope you enjoy reading Home Building Made Simple. If you have any questions, comments or feedback, drop us a line at hbms@buildstore.co.uk Good Luck with your project! BuildStore P.S. If you like what you read, don t miss the next edition! Subscribe to our mailing list to get your free copy of HBMS every quarter, direct to your inbox: Land Prices down 35% If you re on the lookout for your perfect plot, then you ll be pleased to hear that land prices have fallen over 35%. The average single plot price is just over 125,300-10,000 lower than they were this time last year As more plots come on to the market, prices in many counties are as low as 20,000. Land prices began to fall with the onset of the credit crunch and the recession, following a similar trend to house prices. With the market starting its recovery, this is a good chance to make the most of the low prices. Today s prices are over 35% lower than 2007 prices, when the average plot price was 199,000. Now, many plot-hunters will find that a majority of plots are priced below the threshold for Stamp Duty ( 125,000), saving them even more money! On average, 600 new building opportunities, including conversion and renovation opportunities were added to the PlotSearch database each month last year, a trend which is set to continue in For guidance and tips on finding and buying a building plot, renovation or conversion project, check out pages 4 & ) Going nuts for charity BuildStore and civil merchants, Burdens, have teamed up on a campaign to increase awareness of testicular cancer, for the charity Tenovus. To raise money, Burdens are selling specially designed t-shirts for 5, and BuildStore staff have all bought a t-shirt and will be collecting donations on the charity's behalf.. Testicular cancer is 99% curable when detected early, so the message is very clear - Check em, you d be nuts not to Tenovus has a long history of charitable work starting in the 1940 s. Since then, Tenovus has concentrated its efforts on cancer and has been recognised for its pioneering work. Tenovus launched a Mobile Cancer Support Unit in February 2009 which travels across Wales, delivering cancer treatments including chemotherapy, emotional support through social workers and Cancer Support Managers and practical support from a Welfare Rights Officer. Tenovus also deliver cancer education and youth health awareness programmes aboard the Unit. Burdens are looking to raise 10,000 to support another Mobile Cancer Support vehicle and all the profits made from the sales of The Check em t-shirts will go towards that goal. 8 Failing to get a survey could cost more than you bargained for A recent study has shown that a quarter of homebuyers are not getting an adequate building survey carried out before they commit to buying a property, and instead, are relying on a mortgage valuation report. The Royal Institute of Chartered Surveyors (RICS) estimate that those who fail to commission a building survey will spend, on average, an extra 1,800 in unplanned and unforeseen repair costs, which would have shown up on a full survey. Rachel Pyne, of BuildStore explains why a building survey is crucial for anyone undertaking a renovation project: For anyone considering purchasing a property, especially one in need of renovation, BuildStore always recommends that you appoint a professional surveyor to undertake a Building Survey, which we can arrange. Unlike a mortgage valuation report, which only gives an indication of the property s value for loan purposes, the Survey Report will include details of construction, materials, defects and advice on problems, remedial work required repairs and maintenance, which will enable you to establish your project budget. Furthermore, you will need to send a copy of the full report to your insurer, before they can arrange a policy. A survey can also be used in the negotiations of the sale: Once you have the report, it can be used to negotiate with vendors for essential repairs either to be completed at their expense prior to exchange of contracts on the property, or at very least, to offset potential costs, by agreeing a reduced price for the property., Rachel concludes

3 The home building low-down 2011: New Self Build Events With a mixture of one-day workshops, three day courses and weekend events, as well the Big Green Home Show you will have access to all the experts, products and information you need to help you with your project throughout the year. And if you can t make it to an event, the Centre is open five days a week, and entry is free, so you can make the most of the detailed exhibits and features, and the Centre s team of experts and advisors. News in brief This year will also see the introduction of a series of Eco Incentives events, focussing on the Feed-in Tariffs and Renewable Heat Incentives, to help homeowners and homebuilders get the most out of their renewable energy. For 2011, the National Self Build & Renovation Centre in Swindon has put together another packed calendar of Shows, Events, Workshops, The Renewable Heat Incentive scheme finally got the go ahead in the Government s Spending Review last October great news and their popular self build courses, to support self builders and renovators with their homebuilding projects. for eco-conscious home builders. The Department for Energy & Climate (DECC) has confirmed that 860 million is being allocated to the scheme, 20% less than the original plan. The Renewable Heat Incentive is an exclusive scheme which will provide support for renewable heat technologies, including solar thermal panels, wood pellet boilers, and heat pumps, to help the Government meet its target to generate 12% of all heat from a renewable source by Proposals on the Renewable Heat Incentive scheme were published in Whatever stage you are at in your project, and whatever you are building, the Centre and its inspiring events can provide the ideas, advice and guidance to ensure your project is a success! See pages 10 & 11 for more information on the National Centre and the full events calendar. 8 Rewards for Renewables February 2010, and the Government is currently working to determine support available, including the tariffs and the eligible technologies, with a view to the scheme starting in June The RHI follows on from the Feed-in Tariff scheme introduced in April 2010, which provides a financial incentive for householders, communities and commercial organisations to install small scale renewable electricity systems. 8 Highly Commended BuildStore s pioneering Accelerator mortgage has achieved Highly Commended in the Homebuilding & Renovating Self Build Product Innovation Awards More than ten years after its launch, the unique Accelerator was recognised for its innovation in the Awards Finance category. The Self Build Product Innovation Awards was launched in 2010 to showcase the best the industry has to offer and celebrate product innovation in the self build sector. The judges include TV property expert Michael Holmes, 12-times self builder David Snell, and self build author Mark Brinkley, plus representatives from RICS, RIBA and the FMB. Do Your Research There are some fantastic new books hitting the shelves that are worth checking out to help with your project, including Kevin McCloud s 43 Principles of Home, John Burton s Classic Home for the Modern Homeowner, and Betsy Matheson s DIY Projects for the Self-Sufficient Homeowner. See a range of other book, DVD and software titles in our bookshop in the National Centre, or browse and buy online from our website. 8 Rapid Recovery Market research agency, Datamonitor, has predicted capacity for self build finance is one of the few sectors that will grow significantly in the next few years. In its latest report, UK Mortgage Market Map 2010, Datamonitor identifies self build mortgages as one of the strongest performers, predicting a rapid recovery. Datamonitor predicts a 20.5% increase in the sector between 2010 and 2014, resulting in gross lending to self build reaching 3.4bn in 2014, from 1.bn last year

4 PlotSearch Finding a project with Top tips for first-time homebuilders PlotSearch is the UK s largest and most popular source of plots of land and properties to convert or renovate, specifically designed for self builders, renovators, property developers and builders. With PlotSearch, each listing is verified and updated daily. There are currently over 8,000 building opportunities available - the vast majority of which have at least Outline Planning Permission so you know that you can build or create your dream home. The PlotSearch database lists plots and properties from estate agents, private sellers, local authorities, the Ministry of Defence, railway authorities, church bodies, and many more. We list all types of residential building opportunities, including single plots, multi-plot sites, replacement build opportunities, renovation projects, brownfield sites, and conversion opportunities. Search by county, town or postcode, budget, planning type, or project type. Updated daily from around 11,000 sources. BuildStory After a long search, Gill & John Spaul, from Bedfordshire, turned to PlotSearch and were so pleased to find their dream self build plot last year, even more so when we sent them a bottle of champagne to celebrate! They fell in love with the plot straight away, and their 2- Free Plot Alerts by for new opportunities that match your requirements. Aerial photography offering you a bird s eye view of plots. PlotShare facility buy a multiple site with other self builders and divide the land into individual plots. Visit PlotSearch now to subscribe and get searching! Subscriptions start at 15 for three months, or 30 for one year 8 ) plotsearchenquiry@buildstore.co.uk storey 3-bedroom Potton Heritage House is now well underway. The couple said they ve enjoyed the project so far and are excited about completing their dream home. Did you find your plot or project with PlotSearch? Has BuildStore helped with your property project? Get in touch and tell us about buildstory@buildstore.co.uk Getting planning permission is a prerequisite for all self build and conversion projects, and for some renovation projects, yet the planning system remains a mystery to most people. However, armed with a little knowledge you can increase your chances of success dramatically. Decide what professional help you need. At very least, you ll need a set of drawings and it s worth using a good firm of architects or building surveyors. They can submit your planning application, and those who specialise in planning can also give an opinion on the prospects for success. The complexity of planning is such that few can successfully make an application unaided. Councils work to tight timescales, so agree as much as you can with the planning officers before the application is made. Some Councils have set preapplication procedures a number Land4Developers is the essential online land and project finding resource for professional and aspiring property developers. It is the UK s largest source of available plots and properties to convert or renovate, currently listing over 22,000 building opportunities. Land4Developers lists genuine opportunities for residential development: a subscription gives you access to details of thousands of building opportunities throughout the UK. All listings are verified regularly, and the vast majority come with at least Outline Planning Permission. You can specify search criteria, including county, town, planning status and price, and set up free PlotAlerts, which will notify you as soon as something matching your requirements is added to our database, giving you a head-start on the competition. 8 ) enquiries@land4developers.co.uk charge for this, a few don t offer any such service, but its worth checking. Standard planning requirements are set nationally, but each council publishes its own list of extra stipulations. Check what your Council wants, as your application won t be processed until all requirements are met. Your planning consultant or architect can deal with these or recommend other specialists. UK hot spots Need some inspiration for the location of your new home? Check out our pick of top counties across the UK for self build and renovation project opportunities and great prices! County No. of Prices Plots/ Starting Projects from... Aberdeenshire ,250 Cambridgeshire ,500 Carmarthenshire ,316 County Antrim ,000 Dumfries & Galloway 27 15,000 Lincolnshire ,000 Highlands ,750 Pembrokeshire ,000 Shropshire ,333 West Yorkshire ,333 PlotSearch factfile Average self build plot price is 125,300 Over 55% of building opportunities on PlotSearch 100,000 or less In over 55 counties across the UK, plot prices start below 50,000 69% of all building opportunities, including renovations & conversions are Stamp Duty exempt ( 125,000 or below) Over 3,500 new building opportunities were added to PlotSearch in the last six months Over 4,900 building opportunities on PlotSearch were sold in

5 Plot your way to homebuilding success Legal Considerations Once you have found the ideal building plot, assessed and are satisfied that it is economically viable, you need to consider all the legal issues of buying and owning a plot of land, which could mean extra expense and investment of time and extra resources. Here s our guide to cutting through the red tape. investigations do not reveal the owner, it is possible that the original reason for establishing it has lapsed or been forgotten about, but you should take out an indemnity policy to cover for the eventuality of the owner coming forward later. Going once... Buying at auction is not for the faint-hearted. The highest bidder is deemed to have accepted all the terms and conditions of the sale; legally binding themselves to the purchase, and the vendor to sell to the purchaser. Failure to complete will result in the purchaser (the highest bidder) being charged interest at a pre-determined rate typically 4% 5% above the bank base rate and if you back out of the sale for any reason, you can be sued by the vendor for re-marketing costs and any discrepancy in value. Absent deeds The most common problem is when the deeds to a plot have been lost. Usually, it is obvious who owns what, but without the deeds, there is no way of proving it. The best solution is to obtain Statutory Declarations from the vendors and from other associated parties and neighbours, who may be affected. These will allow you to obtain a Defective Title Indemnity Policy, which is effectively a single premium insurance policy. Address your title It is possible to gain title over land that you do not own. In England and Wales, this is referred to as Adverse Possession; in Scotland, it s known as Prescription. This can happen if a vendor has moved a fence to take in some unused land beside the plot. The main plot will then be offered with an absolute title and the acquired bit, with a Possessory title. Check that there is a single premium indemnity policy in place to cover the eventuality of an absent owner turning up to dispute your occupation. The premium for this policy is usually the responsibility of the vendor. Public access It is vital to establish sufficient vehicular access to and from your plot, and is available to a public highway, either directly, or by means of a private driveway or right of way. These rights should be noted in the deeds of the land, but there are instances where they are, for one reason or another, missing. In the case, obtain a single premium indemnity policy, with or without statutory declarations to back up the claim. If you can prove that a property or plot has enjoyed unencumbered and uninterrupted access over land for a period of 20 years or more, a legal right of way can be established. These are known as Prescriptive Easements. There are a number of caveats to establishing a legal right of way, such as access must not be illegal, and it must attach its benefits to the land. Don t be held to ransom If you discover or suspect that a ransom strip is in place on the land, don t ignore it! Ransom strips are small strips of land dividing the plot from the access. They are often quite obvious and apparent on the ground, but other times, their existence can only be established by careful measurement or by detailed study of the plans. They can often go unnoticed if they are not referred to in the deeds or the Land Registry details. If a ransom strip is in place, then it is the result of a deliberate policy to either gain from the land s eventual development, or to prevent development in some way. It s vital that you investigate it as thoroughly, and discreetly as possible. If the strip is obvious and the owner is known, you have to enter into negotiations with them. If your

6 Home building fina Building a home is not like buying a house, so it stands to reason that the finance for home building project works differently. BuildStore Financial Services has a wealth of experience arranging finance for self build, renovation, conversion, and home improvement projects, plus access to exclusive whole of market products, so you can be sure you we can advise and arrange the best funding solution for your project and your circumstances. Give our team of advisors a call to discuss your funding requirements today on How self build & renovation mortgages work Self build and renovation mortgages release money in stages as the build progresses, rather than as a single amount. These stages correspond to the stages of the construction works: Self build mortgages Stage Brick & Block Timber Frame 1 Purchase of land Purchase of land 2 Preliminary costs & foundations Preliminary costs & foundations 3 Wall plate level Timber frame kit erected 4 Wind & watertight Wind & watertight 5 First fix & plastering First fix & plastering 6 Second fix to completion Second fix to completion Renovation mortgages Stage Renovation / Conversion 1 Purchase of the property 2 Preliminary costs and structural overhaul 3 Wind & watertight 4 Plastering & services 5 Second fix 6 To completion There are two types of mortgages, defined by when you get money during the build. They are traditional and advance and once you assess your cashflow, you will be able to select which type is right for your needs. Traditional: For self build, funds are released to buy the plot, usually between 50% to 85% of the purchase price, and then the money for the build is released in stages, corresponding with the stages outlined above. For a renovation project, funds are released to buy the property, usually up to 85% of the purchase price, and the money for the building costs is released for each build stage, once the work for each stage has been completed. The borrower is responsible for funding the early stages of the project but this situation has been eased with the introduction of higher Loan to Cost mortgages from BuildStore, reducing the typical deposit required from 25% to 15%. Advance: Exclusive to BuildStore, the advance mortgage, known as the Accelerator, releases funds at the beginning of each build stage. You can borrow up to 85% of the cost of the land or renovation property and up to 85% of the cost of the building works; BuildStore has access to exclusive products on both an advance and arrears basis and can professionally and properly assess your project and cashflow requirements to recommend the right funding solution and product 8 ) acceleratorenquiry@buildstore.co.uk BuildStory Alison and Andy Scobbie from Loughborough always had a dream to create their own unique home. It took them four years but they have finally completed and moved into their beautifully converted energyefficient home, made possible with a BuildStore mortgage. The Scobbie s spent years searching for a plot and eventually, in 2007, Alison came across a derelict barn and stable block just a few miles down the road. It was an ideal opportunity for the Scobbie s to build the house they wanted and they were on track with their building dream. The first thing they 8 buildstory@buildstore.co.uk did was sort out their finance to enable them to purchase the barn and fund the building costs. They wanted to remain in their existing home and as they were employing a building contractor, they needed cash to pay the bills and buy the materials. It wasn t difficult to get our mortgage we did it through BuildStore the mortgage they arranged for us and the service was excellent. The house we have now would not have been possible without the Accelerator mortgage and the cashflow it gave us. The first payment got us started and the remaining funds were paid at the beginning of each build stage which meant we were able to keep an eye on the ongoing spend with builders and materials throughout the project, Alison explains. The couple were very keen to go green on the build. They have installed a groundsource heat pump and under floor heating, and have solar panels and a wind turbine on the roof. Using a contractor meant the build took just nine months to complete and went very smoothly. Has BuildStore helped with your property project? Get in touch and tell us your BuildStory! Latest Mortgages Lender Lends % of End No. of Minimum Works on Land Value of Stage Completef for Property Payments 1st Stage Payment Advanced Guaranteed advance stage payment mortgages: (only available from BuildStore) Bath Building Society (Accelerator) 90% (OPP) 80% six DPP & Building Regs granted Hanley Economic Building Society (Accelerator) 85% (OPP) 80% six DPP & Building Regs granted Saffron Building Society (Accelerator) 85% (OPP) 80% six DPP & Building Regs granted Melton Mowbray (Accelerator) 85% (OPP) 75% six DPP & Building Regs granted Melton Mowbray (Eco Accelerator) 85% (OPP) 75% six DPP & Building Regs granted Traditional stage payment mortgages: Bath Building Society (Exclusive available from Buildstore) 75% (OPP) 80% six Foundations Chorley Building Society (Exclusive available from BuildStore) 85% (OPP) 80% six Foundations Ipswich Building Society (Exclusive available from BuildStore) 75% (OPP) 75% flexible Foundations Hanley Economic Building Society (Exclusive available from BuildStore) 75% (OPP) 75% Six Foundations Shepshed Building Society (Exclusive available from BuildStore) 75% (OPP) 80% Six Foundations BM Solutions 75% (OPP) 75% flexible Foundations Dudley Building Society no 75% six damp proof course Ecology Building Society 85% (OPP) 85% flexible Foundations Furness Building Society 66% (OPP) 80% eight excavation Halifax Building Society no 80% flexible first floor Holmesdale Building Society no 70% six damp proof course Leeds Building Society 75% 75% five Foundations Lloyds TSB Scotland 70% (DPP) 70% three Foundations Norwich & Peterborough Building Society 75% 75% six Foundations Progressive Building Society 75% (OPP) 75% 3 or 4 wind & watertight Scottish Building Society 80% (DPP) 80% flexible Foundations For more information on these and other mortgages: 8www.buildstore.co.uk/finance/mortgages/tracker.html ) YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE

7 nce The money behind the mortar Securing the right funding Loan-to-Value (LTV) - In general, for a self build traditional mortgage, the amount you can borrow to purchase the land will be 75% of its current value, and for the build costs, again you can borrow around 75% of the end value. Funds are released in stages during the works after each stage completed, not exceeding 75% of the value at each stage. With an advance mortgage, you can borrow up to 85% of the land and build costs, stage payments are released in advance of the costs of each stage. - For a renovation or conversion project, again, typically 85% of the current value to purchase the project, then stage releases of up to 85% of the end value (released after each stage completed), and not exceeding 75% of the value at each stage. These project can be funded with arrears or advance mortgages. - If you already own the land or the property to be renovated, you can borrow against the value of this, meaning you can borrow more of the build costs If you need to borrow for your build, you ll discover that the mortgage market is more cautious and lenders criteria is tighter. BuildStore s Head of Financial Services, Rachel Pyne, explains the key criteria and factors for mortgage borrowing. Finance for housebuilding whether its national housebuilders, or individual home builders - has not been immune to this. However, the good news is that there remains a core group of mortgage lenders committed to the private self build market, and there are a number of new lenders now entering the market, partnering with BuildStore, to provide this type of specialist mortgage finance. With interest rates still at historically low levels, and the cost of borrowing relatively low (typically just below 6%), lending capacity is not so much of an issue. However, lenders have become increasingly cautious and it s the lender s criteria that have been impacted most. Three key factors affect your ability to borrow for self-build, renovation or conversion projects: Your income & disposable earnings - For the employed, most lenders limit their lending to around 3.75 times sole income, 3 times joint income, or 3.75 times first, plus one times second gross annual income; ; - For the self-employed, it s based on Net Profit Before Tax, evidenced by two or three years accounts - Lenders will also assess your ability to afford the mortgage, based on current and future commitments and outgoings The project - Things such as build type, construction method, location, and schedule of costs will all impact which lenders will lend, and how much you can borrow. Other factors such as credit history, time in employment / business etc will also affect your ability to borrow. In order to give you the best chance of securing finance for self-building, BuildStore recommends: Review your existing mortgage and other borrowings. It s a competitive market between lenders, and there are some great deals to be had - if you can reduce your current monthly mortgage payment, you ll have more disposable income towards your self build application. You may also be able to consolidate other borrowing in a more cost-effective way. The finance advisors at BuildStore can help you conduct this review and find the best solutions. If you have a current property that you ll be selling before, during or after your building project, BuildStore is currently offering a free market appraisal of your current home, which gives you greater certainty of its saleability and value, and will bring clarity to your self build mortgage application. Check your credit report and repair any adverse credit history Save for the deposit typically, you ll need 15% - 25% of the land and build costs, plus all the associated fees. You ll also need to think about how your cashflow will work during the build phase, as this will determine which type of self build mortgage will be most suitable. For all your mortgage needs Did you know that BuildStore can help with your mortgage requirements at every stage of your life? Our team of advisors have access to all of the top lenders in the marketplace to find the best deal to suit your particular circumstances.... We have a team of advisors who can access all of the top lenders in the marketplace to find the best deal to suit your particular circumstances Remortgaging or buying a house? Let BuildStore help with re-mortgaging your existing property or finding you a mortgage to buy a house. Our experienced advisors can help if you are coming to the end of a special rate on your existing mortgage, buying a house for yourself, or buying-to-let. Preparing for your build? While you search for that perfect plot or renovation project, BuildStore and can help organise your finances to let you move quickly when the ideal site comes along. We can access a range of mortgages, including a re-mortgage package with a cash drawdown facility to give you the money for a deposit. Finished your project? Call us for a review of your mortgage requirements for your new home. Our advisors can give advice on all types of mortgages and could stop you paying too much for your mortgage now or in the future. 8 )

8 BuildCare Project insurance for peace of mind Protect your Project When embarking on a major project like a self build or a major renovation, getting your planning and preparation right will lead to a much smoother project. However, no matter how well you plan, things can and do go wrong and it is essential that you have the appropriate insurance in place for your project isnurance is a necessity, not a luxury! A major building project can be stressful; unexpected events such as a flood, fire or theft of materials could seriously impact on both the timescale for the build and costs and could have a disastrous effect on your ability to finish your new home. If you are borrowing to finance your project, as a condition of your mortgage you will be required to prove you have adequte cover. Site insurance can protect you from all the things which can go wrong during your build and also covers materials and equipment on site. You should ensure your site insurance policy has comprehensive cover and protection, including: Public liability - protection against claims in respect of damage or injury to members of the public (for example - injury to trespassers 8 buildcareenquiry@buildstore.co.uk Typical claims There is a vast array of incidents and accidents that can come about when building a home, so many, it would be impossible to consider all of them before the project begins. That is precisely why self build insurance is so important in many ways. Any conversion, extension, renovation, or new build comes with a number of risks, and to understand just how many there are, here are some examples of claims we ve had from BuildCare customers over the years: Fire: Arson attack on property, estimated loss: 45,000. Accident: Water mains pipe cracked during foundation work, caused by contractor, estimated loss: 2,500. or site visitors or damage to neighbouring underground services). Employer's liability - protection against injury claims from anyone you employ on site, including all contractors and subcontractors. The self builder often assumes the position of being an employer, even if the labour being used is self employed. It is therefore a legal requirement that you have this cover if you are employing anyone on site. Contract works - protects the building materials on site and the building in course of construction. In addition to these, the following cover is usually included: Cover for plant, machinery and tools both owned and hired in. Cover for site huts, stores and caravan if you are living on-site during construction Legal expenses - this gives you funds to take legal action where things go wrong, such as if you have problems with a professional or with the supplier of materials Storm: High winds caused partially-built side wall to collapse, estimated loss: 4,500 Theft: Site hut broken into, tools and equipment stolen, estimated loss: 1,450 Vandalism: Severe damage to rear of property, including windows and doors, estimated loss: 2,700. Theft: Theft of fencing, estimated loss: 1,275. Landslide: Cracks appearing in corner of property due to landslip, estimated loss: 12,800. Accident: Damage to bathroom suite, estimated loss: 950. Flood: Ground floor of property flooded, estimated loss: 18,900. Structural warranty While few people would buy a new house without a 10-year structural warranty, many self builders ignore a warranty for their project, and opt instead for Architect Certification of their property. While this may save some money during the project, it s worth bearing in mind that this states only that the building has been built to the required minimum standard, and is not an insurance policy. If there is a structural fault once your home is complete, you would have to take legal action against the architect to prove that the structural fault was as a result of their negligence. This is much less attractive than having an insurance policy which covers specific occurrences regardless of the problem or who is responsible. Build Care s Structural Warranty policy lasts for 10 years and provides the following cover: Cover for the cost of complete or partial rebuilding or rectifying work to the new development which has been affected by major damage. For the cost of making good any defect in design, workmanship, materials or components in the drainage system. Cover for repairing, replacing or rectifying any part of the waterproof envelope as a result of the ingress of water caused by a defect in the design, workmanship, materials or components. Cover for the cost of making good any defects in the chimneys and flues which was newly constructed causing imminent danger to the health and safety of occupants. In addition, the warranty normally includes a Site Technical Audit and "key stage" technical inspections. This not only gives you the comfort of knowing that your build is progressing properly, but can also be used as the trigger for the release of your stage payment if you are using a traditional or an advance stage payment self build mortgage. Moreover, if you are planning to sell your new house within 10 years of its completion, the Warranty can be transferred to the new owner for the balance of its term is a valuable sales feature. 8 ) buildcareenquiry@buildstore.co.uk Q: How long does a site insurance policy last? The cover should last for the period of your project and is usually set up for an 18 month or two year period, with the option to extend it if you have not finished the project by the end of the cover period. A single payment is made to cover the term of the policy, and to give you value for money, the BuildCare policy will convert the site insurance policy to buildings and contents cover for the remainder of the term period if you finish the build before the end of the policy. Q: For a renovation project, will site insurance cover the property to be renovated? Yes. You will need to give a reinstatement value for the building that exists, plus the cost of your project when you ask for a quotation, and both parts will be covered. You are also likely to be asked for pictures of the existing building so that underwriters can see its current condition. Q: I am a property developer - can I still get site insurance? Yes, but you need to tell the insurer that you are developing for profit so they can charge the appropriate rate and so that you can be sure that they will pay out if there is a claim. BuildCare Pro is one policy that has been specifically designed for developers. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE

9 TradeCard Materials buying power Get trade prices & exclusive deals on all your building materials with the FREE TradeCard!! Access to trade prices on over 400,000 building products Special offers and exclusive prices & discounts Higher credit limits = Improved cash-flow A dedicated account manager to help you find materials Pay in cash or set up an account direct with suppliers (up to 25,000) Free building system analysis and quote service Free one-day workshop on buying and selecting your materials Expert help and advice on your project Get an application form for your free TradeCard online, by telephone, or visit the National Self Build & Renovation Centre in Swindon. 8 ) tradeaccountenquiry@buildstore.co.uk TradeCard Partner Product Category TradeCard Offer DIY & Home Accessories Central Vacuum Systems, Air-Source Heat Pumps, Air-to-Water Heat Pumps, Heat Recovery Ventilation Flooring & Carpeting Timber, solid and hardwood floors, doors, engineered windows, beams: mouldings skirtings, architraves, dados,cladding, and decorative mouldings 10% off everything FREE detailed room-by-room heat loss report (worth 270) with heating design guidance on ventilation system orders HALF PRICE commissioning service (worth 300) on ventilation system orders 10% discount on all central vacuum system orders 5% saving on trade prices (7.5 % saving on all orders invoiced in March 2011) Free flooring care and maintenance kit with your first looring purchase Sample service on standard products Working with builders merchants One of the ways to make substantial savings on your project cost is by purchasing your materials yourself, especially the major specialist items, like doors, windows, insulation, roofing and flooring. Armed with BuildStore TradeCard, a good place to start is at your local partnering TradeCard builders merchant. Make an appointment to meet with the local branch manager, tell them about your project and let them know over the coming months how much you are planning to spend on materials, as long as they can look after you in terms of price, service and delivery, they have a very good shot at getting your orders! BuildStore is partnered with both national and local builders merchants, including Ecomerchant; the Wolseley Group which includes Build Center andplumb Center; JT Dove, a builders merchant based in the North, and Plumbing Trade Supplies, and branches of participating merchants can offer our TradeCard members favourable prices and deals. Get the best from your builders merchant Engage with with your TradeCard merchants early on in your project. Meet with your local branch manager. Show them your drawings and tell them what you need to buy. Agree a volume order discount on your whole proposed project spend. Build a relationship with local branch staff. Be prepared to negotiate. Branch staff will also be able to help you with advice and samples of bricks and other materials that you will need for your planning application. Your project manager or builder is also free to use TradeCard on your behalf - If the builder uses your TradeCard account, you will get the direct benefit of reduced prices on products and materials. If you didn t complete this section when you filled-in your application form, call your Trade Card account manager to arrange for the details to be added. Don t forget, the TradeCard costs you nothing, but it can save you thousands! TradeCard Manual Your Project Bible! The TradeCard manual is your free online guide to self-build and renovation projects. The manual divides a typical build project into 17 manageable build stages and gives you the essential information you'll need to make build and material purchase decisions to help keep your project on track and in budget. A practical guide to the choices available and decisions needed at each stage of your build. Packed full of tips and advice to help you make the right decisions and keep your project moving. Overview of different trades you need and when you need. Check-lists to help you plan and order materials in advance of your build stages....and many more BuildStory After the children moved out of the family home John Faithfull, from Worthing, found the house was too big for him and his wife, so they started to consider down-sizing. He was lucky enough to have a substantial front garden and approached the local planning office about building another property in front of his current house.having spent two years carefully researching, planning and designing his three -bedroom house, his plans were approved in early John has overseen all the work himself, and took time off work to ensure that he was onsite everyday to manage the tradesmen and labourers. Having never undertaken such a project before, John visited the National Self Build & Renovation Centre in Swindon, and found the exhibits and advice on offer to be invaluable. It was during a visit to the Centre that John discovered TradeCard, and promptly signed up. John found the TradeCard extremely useful as it gave him the power to negotiate 8 on many products. John says he has learnt a lot of lessons throughout every stage and admits he may be tempted to do another self build. Doing the work myself and being onsite every day has helped me to maintain control over budgets and I have not deviated from my original plans. I was keen to include lots of little details and unique features to give the house lots of character and a real wow factor, which is something that you can t do when you buy off the shelf

10 National Self Build Building skills for property perfection Our popular Self Build & Renovation Course is back for 2011! The Course, developed and delivered by the experts at the Centre has already provided hundreds of budding self builders and renovators with the skills they need to build their own homes since its launch in January Over the three-day course, homebuilders can gain a real understanding of the planning and building process, including budgeting, finding land, building regulations, design & planning, project management, employing tradesmen and understanding the latest eco technology. Whilst primarily aimed at novices, those who have already started or completed a project will undoubtedly find the course useful too. Covering 12 topics in total, the courses take the form of informal workshops and make use of the superb practical exhibits available in the Centre to provide attendees with a level of knowledge which guarantees their projects will go more smoothly. Previous attendees have saved as much as 18,000 on their projects by following the advice from our course lecturers! Each course will cost 279 plus VAT, which includes comprehensive course notes and folder, a buffet lunch and refreshments. The course will run: Friday 1st - Sunday 3rd April 2011 Friday 7th - Sunday 9th October 2011 Friday 4th - Sunday 6th November 2011 Places are limited, so please book early! 8 ) New exhibitors in the Trade Village The Centre s Trade Village & Education Zones feature the industry s leading suppliers and service providers, so you can browse and compare the latest products and solutions. With over 250, you ll be spoilt for choice, and recently, more suppliers have found a new home for their products in the Centre, including: Ockwells Thermogroup Sambourne Kitchens EcoTherm Insulation Freedom Heat Pumps Rewatec Vernice Innovations Uretek Marley Eternit Fein Power Tools Discrete Heat Fakro GB Tarmac Steico Wood Fired Ovens by Jamie Oliver and many more!! Everything you need under one roof As the UK s only permanent Centre dedicated to self build and renovation, we have welcomed over 70,000 visitors from all over the country, looking for advice, information, ideas and inspiration, since opening our doors over three years ago. Along with over 25 weekend events, covering everything from eco-building, project management, building systems and interior design to conversions & extensions, kitchens and bathrooms, and renovation, we have established two annual shows - the National Self Build & Renovation Show and Big Green Home Show, and launched our Self Build Courses. The 67,000 sq ft Centre has helped thousands of people to design and build their dream home, offering support, and access to all the services and materials needed to make their projects a success. With a host of educational features and exhibits, the latest products and services on display, and friendly expert advice, the Centre has all the answers under one roof. For anyone considering a home building project, a visit to the Centre is a must - you can take an audio-guided self build and renovation journey, compare the latest products and services from leading suppliers, find recommended tradesmen and professionals, speak to advisors about funding your project, find a plot or renovation and get lots of inspiration from our three full-size houses. Along with our homebuilding visitors, the Centre has also welcomed some familiar faces through its doors, including Tommy Walsh, Kevin McCloud, Dick Strawbridge, and Oliver Heath to name but a few, to offer visitors the benefit of their expertise. The Centre has proved equally popular as a conference and meeting venue, hosting around 10,000 delegates at over 230 conferences, product launches and meetings. The Centre and its calendar of events continues to be an engaging and inspiring experience for homebuilders across the country; no matter what type of project you are undertaking, or what stage you are at, you ll find the secrets of success for your project under one roof

11 & Renovation Centre The home of home building What can you see at the Centre? Trade Village TradeCard Demonstration Area Auditorium Potton Show House Professional & Trade Services Finishes Services Design Centre Renovation House Experts Desk Book Shop Visitor Information Walls & Structures Café Financial Planning PlotSearch Plant & Site Set Up Groundworks Potton Show House Explore a stunning Ruskin inspired feature-packed and architect designed smart house by self build specialists Potton, sponsored by Toshiba. Renovation Zone See an old 1920s wreck of a property come to life before your eyes.toshiba. Educational Journey Learn how to build your ideal home from foundations and a choice of construction methods through to roofing and internal finishes. Design Centre Compare hundreds of house, kitchen and bathroom designs all in one place. Trade Village See over 240 companies offering all the products and services you will need for your self build or renovation project. In-house Experts Meet independent experts for advice on everything from financing your project, finding a plot of land and sourcing tradesmen and materials to design, project management and payback from eco technologies. Roofs 2011: A packed Year of Events & Shows! Self Build & Renovation Weekend Workshops You re never on your own at the National Self Build & Renovation Centre. Our series of weekend events will take you through every stage of your self-build or renovation project. Covering everything from budgeting and planning, to building regulations and project management, the workshops are perfect if you re just starting out but there s something for everyone. The weekends are packed with advice and information from industry experts, and make use of the superb practical exhibits available in the centre. The best weekend you ll ever spend! Eco Workshops Inspired by the idea of a greener build? Our Eco workshops run throughout the year at the National Self Build & Renovation Centre in Swindon. Whether you re starting from scratch, renovating or improving, industry experts will lift the lid on a range of eco issues to help you design and plan the perfect project. Find out about sustainable heat, energy and building systems, feed-in tariffs and renewable incentives... All in a friendly, relaxed environment, with one-to-one consultations, workshops and seminars. The Big Green Home Show October 28th 30th Want to make the right green choices for your project? Don t miss this show. It s the biggest in the UK and has everything you need to know about sustainable building and eco-living plus a whole lot more. Get the low-down from industry experts, manufacturers and eco-services as we help you cut through the jargon with three full days of workshops, seminars and live demos. Learn about everything from fitting solar panels and adding extra insulation to building a new zero carbon home from scratch. And discover how to save the planet as well as saving money. Dates for your Diary: Self Build & Renovation Workshops Saturday 16th & Sunday 17th April Saturday 28th & Sunday 29th May Saturday 25th & Sunday 26th June Saturday 30th & Sunday 31st July Saturday 27th & Sunday 28th August Saturday 24th & Sunday 25th September Saturday 26th & Sunday 27th November Eco Workshops Saturday 16th July: Feed-in Tariffs & Renewable Heat Incentives Saturday 10th September: Sustainable Heat & Energy Saturday 12th November: Eco Retrofit All of our events are free if you book in advance book online or call us, to book your tickets now! 8 ) nationalcentre@buildstore.co.uk BuildStory Bill and Jo Smith have always had an affinity with property, and with the help of some inspiration at the National Self Build & Renovation Centre, the couple are almost finished their renovation and extension project.their homebuilding project combines their two property passions a love of old traditional buildings, and modern-day construction techniques and materials, giving them an energy efficient home that they can truly call their own. It was a bit of luck when the old cottage next door to theirs came up for sale. They bought the cottage, and immediately started drawing up plans to convert the two cottages into one spacious home. Both cottages had some rather awkward looking extensions to the rear, so Bill and Jo decided to demolish those, and build one big extension in their place. The Smith s have had to clear some difficult hurdles, including theft, bad weather and a difficult vendor, but they have taken their time and been very hands on with the project throughout. Bill is acting as project manager: The project has been a bit of a roller-coaster, but an experience we wouldn t give up for the world. We will end up with a home that has our own stamp on it, as well as our blood, sweat and tears, right to its core! BuildStore and its partners have been a significant resource of information, support and advice, and have made this project possible

12 More information/useful contacts: THE IMPORTANCE OF PLANNING PERMISSION: What turns the corner of a field, or part of somebody s garden, into a building plot? It s planning permission. Without planning permission land simply can not be built on, so it does not make much sense to buy land without it. Never pay for land before it has actually got planning permission; you can agree to buy but if the planning application fails, the contracts need to be voided. TYPES OF PLANNING PERMISSION: Planning permission is usually given in two parts:- Outline planning permission grants approval on the principle that the land can be developed. It can be obtained with a simple site plan, which could be nothing more than a copy of the Ordinance Survey map, with a red line drawn around the curtilage of the plot. Detailed planning permission, or Approval of Reserved Matters as it is more properly called, deals with the actual design of the proposed dwelling, its siting, and the type of external materials that it will be constructed with. Full planning permission rolls the outline and detailed stages together into one application. Up until the autumn of 2005, most consents were granted for five years, but since then most consents in England & Wales now last for only three years. It is, however, up to the council to set their own time limits. COPYRIGHT BUILDSTORE 2006 CONDITIONS: Outline planning permission is always conditional; in other words it will always be given with certain conditions that have to be satisfied. The first and most important of these is the length of time it will run for. It is vital if you are buying a plot, or any property that is subject to a planning consent, that you check out the dates first. OLD & NEW CONSENTS: Many older outline consents were granted for a period of five years, with the condition that application should be made within three years for Approval of Reserved Matters. If, therefore one is buying land with such a consent four years after it was originally granted, and no such application for detailing planning permission has been made, then technically the consent has expired. In which case, you might still want to proceed with the purchase, but with a condition on the contract of sale making it subject to receipt of satisfactory planning permission. Newer outline consents will only last for three years with the requirements that the application must be made within that period, and that work must commence on site within two years of the granting of the Approval of Reserved Matters. This is important because it does mean that if the application for the detailed consent runs past the original three year period and it fails, then the outline consent will be out of time and therefore no longer be valid. Once again, the rule must be to check all dates carefully and if necessary, only agree to buy subject to receipt of satisfactory planning permission. REMEMBER: A planning consent may also contain various other conditions requiring that something is done, or that some criteria are fulfilled, before the consent is operated or before the resulting home is occupied. It is imperative that you make absolutely certain that these conditions are capable of being satisfied by you, or by others. You must also be certain that if they involve third parties, the necessary legal agreements are in place to make certain that they can be satisfied. The online home of home building Search for land Apply for a mortgage Check how much you can borrow Calculate your build costs Site Insurance Quotes Technical advice & information Apply for a TradeCard Book tickets for the Centre Ask the Experts Online support to keep your project simple... Need some help or advice, but can t make it to the Centre? No problem. BuildStore also offer a vast array of expert advice and support through our website, giving you24/7 access to all the information, guidance and tips you need to make your project simple. Here is just a sample of the online resources available to you at just the click of mouse Search for Land - Our PlotSearch land database is an online-only service, allowing you to surf for turf whenever you want! Our verification process ensures that you are viewing the most up-to-date information on plots, and the free PlotAlerts will deliver plots that fit your requirements direct to your inbox. See page 2 & 3 for more details ALL ABOUT PLANNING PERMISSION This fact sheet has been written to give you a better idea about the different types of planning permission, and how the whole planning permission process works. KEY POINTS: 1. Never buy a plot without knowing if planning permission can be obtained 2. Be aware about the different types of planning permission that exist 3. Outline planning permission is always conditional 4. The consent laws have recently changed The Planning Portal Type planning permission into site search Land Challenges If you are soon to be a landowner, but are struggling to get to grips with the planning system, not sure how to assess or value a plot, or worried about the legality of buying and owning a plot, our series of fact-sheets covering the most common issues will help you navigate your way through the process with simple straightforward advice, solutions and information Project Planning Our handy build cost calculator is the ideal tool to help you plan your budget, giving you a breakdown of building costs based on your project specifications. Funding the Dream If you need to borrow the funds for your project, you can use our online mortgage calculators, to help you determine how much you will be able to borrow, which self build or renovation mortgages are available to you, and what your monthly payments are likely to be. You can even apply for one of our mortgages online! Check out the Centre Even if you can t physically make it to our Centre in Swindon, you can check out the our events calendar, read about what s in the Centre, check out our full list of exhibitors, book free tickets for any event or show, and even your specific project queries to our team of Centre Experts Material Rewards If you are planning to source and buy some or all of the building materials, fixtures and fittings for your project, apply online for a TradeCard (Page 9) to get exclusive discounts and special offers on over 400,000 products from leading suppliers and manufacturer s. Ask the experts Expert: Neil Davey Design & Planning Q I want to develop the bottom of my garden, but a developer who has built at the end of the garden has imposed a ransom strip along the bottom fence line. How do I tackle this? A Ransom strips are a legitimate legal tool usually enforced by way of a covenant which can only be lifted with the agreement of the person who imposed the covenant in the first place. In this case, the ransom was put in place to either prevent you from developing the end of your plot, or to make sure that they benefited financially from an uplift in value if you were to develop. Often, ransom strips can make a plot unviable as the going rate to lift a covenant is set in case law at 50% of the uplift in value. If you need land to gain access to the plot, it could be costly. It s advisable to consult a solicitor. You need to find out what the terms would be to lift the ransom and if the sums work out, to pay it. If you don t want the expense of a solicitor at this stage, you might consider hiring a planning consultant to meet with the developer to discuss the options Expert: Robin Batchelder Project Management Q For a brick & block build, at what stages should I get tradesmen on site & what work do they cover? A In a traditional build, the trades are usually in the following sequence: Groundworker clear site and set out, foundations, lay Slab. Bricklayers Foundation blockwork (if not done by Groundworkers) & superstructure. Carpenters Joists and roof trusses; Roofers Felting, Battening and tiling; Plumber First Fix. Electrician First fix; Carpenter First fix, including stairs and floors; Plasterer/Dryliner. Plumber second fix, incliuding boiler and heating. Carpenter Second Fix inc Kitchen;. Electrician second fix; Ceramic Tiling; Painting and Decorating; Groundworker - hard landscaping. Expert: Rachel Pyne Finance Q : I am currently looking for a plot. Should I organise my finance now or wait until I have had an offer accepted? A As a result of the credit crunch, lenders are now more cautious and it will pay you to get your finances in order to put you at an advantage so that when you do find that ideal plot you can move quickly to secure it and beat the other people who will be after it. Speaking to a mortgage specialist, such as BuildStore, who understands the self build market will help you here. They will be able to talk to you about what you want to build and the costs involved and will be able to tell you if you are likely to be able to borrow the amount you need in the current lending climate. By doing this you will be able to move speedily and with more certainty when you find that plot. One way we have been able to help clients who have not yet found a plot to be ready to secure their plot quickly is by switching their current mortgage to an offset account with a pre-agreed cash drawdown facility. This gives them quick access to the deposit they need for their plot without having to pay any interest on the amount until it is drawn down. 12 Like what you read? Why not join our HMBS mailing list to receive the latest issue direct to your inbox every quarter? Visit and sign up now!