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Fixed price contracts are a contract you have with your builder. They set the cost of the work and do not allow for any changes. This is a win-win situation for both the developer and builder. The builder can charge higher fees while the investor will know the exact costs, giving them total peace of mind. Fixed term contracts are more attractive to lenders.
It is vital to comply with all building regulations and obtain the appropriate planning permissions. Your Local Authority Building Control Service can grant Building Regulation Approval. If you're building the house yourself, you are responsible for adhering to all regulations. If you hire a contractor to do the work, then responsibility falls on them. However, the owner may be served notices if any regulations are not followed.
When borrowing finance, it is important to consider any additional costs. You should consider exit fees and legal fees as well as lender fees.
You'll only have one contact from project start to completion, even if your loan is transferred to another type. Borrowing through a lender means that borrowers have to enter into a mortgage contract against their property. If you fail to make your mortgage payments, your property could be taken away. After the project is completed, the loan can be repaid by the sale of the property or refinance to a residential mortgage or buy-to-let mortgage.
To avoid any delays, you should submit your application as soon as possible. This process can be complicated and can lead to delays if new information is discovered. While you wait for planning permission, our advisers will arrange your application. The type of scheme and level of work involved will determine the best product. Contact our team today to discuss.
Professional checks will be required at each stage of development to verify that all building regulations are being followed and that works have been completed according to the expected standards. This can be done either by your architect, or through the NHBC.
