Finance your dream
If you are renovating, extending or converting an existing property a self-build mortgage might also work for you
Mortgages
When you build your own home you will always need a larger sum to begin, to buy land and pay to complete the first stage on site before the mortgage starts.
Typically, the standard self-build mortgage pays out at the end of six key points:
• Land purchase
• Preliminary costs and foundations
• Wall plate level (brick and block) kit erected (timber frame)
• Wind and watertight
• First fix and plastering
• Second fix and completion
Get VAT back
When you self-build or convert a property you can reclaim a substantial part of the Value Added Tax paid.
New builds are ‘zero-rated’ so your builder should not charge you VAT because they can claim it back themselves later.
Your claim for VAT on any other aspects eligible must be made within three months of completion and can only be done once – make sure you have claimed for everything because there is no second chance.
With separate forms for different categories of materials and fixtures, hiring an expert to make the claim can be a wise move.
No mortgage? Try the loan fund
The Scottish Self Build Loan Fund has committed more than £5 million in loans of up to £175,000 to self-builders across Scotland unable to obtain mainstream self-build mortgage finance.
The Loan Fund is administered on behalf of the Scottish Government by the Communities Housing Trust, an Invernessbased charity.
Last year, the Scottish Government added another £2 million to the Loan Fund, and extended the time. It is now open until August 31 this year; the loans must be repaid by August 2023.
The loans are repaid when the homes have been completed, by acquiring a standard residential mortgage.
Loans already repaid are now being ‘recycled’ to finance additional builds, allowing even more people to build their own homes.
For more information about the Self Build Loan Fund, and to apply: https://www.chtrust.co.uk/scotland-self-build-loan-fund.
Make sure you have the correct insurance cover for your project. NEVER proceed without it.