Couple’s self-build dream comes true
Sarah and Tom hope to move into their new Dales home soon. They provide some tips on their project – and some highs and lows.
Mortgage expert Andrew Milnes, head of the Mortgage Advice Bureau, Bingley, followed Sarah and Tom Baines on their selfbuilding journey, which began in December 2019. He tells the story with its highs and lows and lessons learned here:
Sarah, 30, a marketing manager, and Tom, 34, an events manager both grew up near the small Yorkshire Dales village of Hetton and wanted to return to live in the area.
There were few properties on the market, but they did find an old, run-down house on the outskirts of the village.
The couple each had a home, which they sold and that, along with financial support from family, meant they were able to buy, with cash, the house and its plot of land for £350,000 in August 2020.
Before the sale went through, they knew the house was unfit for purpose and they planned to demolish it and rebuild, as it was cheaper than doing a complete refurbishment on the existing property.
Both practical people who manage large projects as part of their job, Sarah and Tom wanted to act as project managers on their self-build and put in place a plan that involved drawing down the money to fund the build in three to four stages, with an estimated finish date of summer of 2022.
To secure the funding, Sarah and Tom approached Mortgage Advice Bureau, who due to their partnerships with Build Loan, were able to give four options based on the projected end value, cost of the land, cost of the projects and the couple’s income.
Sarah and Tom decided on a deal with slightly higher interest rates but with a smaller up-front fee, which was agreed and funded by Newcastle Building Society, in conjunction with Build Loan, who helped the process run smoothly.
This decision was based on the fact that they didn’t need to draw down much money at the start of the project so the smaller fee gave them more capital to play with initially.
The demolition went ahead as planned in January 2021, when Tom and Sarah started to draw down the funds, to finance the groundwork and build the foundations.
The start of the project collided with the third national pandemic lockdown.
Fortunately, this lockdown allowed people to continue working and didn’t put the brakes on the construction industry, as was the case with the first lockdown.
So, with support from Sarah’s father, the demolition was able to go ahead without too much delay and with some considerable savings, which meant that the Baines didn’t lose momentum on the project.
Those savings became incredibly useful as the cost of construction materials rose and there was also a labour shortage.
However, with careful budgeting, negotiations and a “head over heart” mentality, the couple are well on their way to move into their dream, Yorkshire Dales home on June 1 this year.
Sarah says. “We are holding out for June when, hopefully, we can relax and start to think about fun things such as decorating and furnishing.”
The couple learned that asking questions and finding alternative solutions helped them in the long run.
For example, a conversation with their adviser alerted them to the fact that they could VAT register their project and claim the VAT back, and wider conversations
with Yorkshire Water revealed that they could connect their home to the mains sewer in the field across from them, coincidentally owned by Sarah’s father.
By doing this, instead of sticking to their original plan of adding a septic tank, they made further savings.
They also learned practical tips, such as creating a WhatsApp group to help co-ordinate the trades and have real-time visibility of the project.
Despite the savings the couple made on the demolition and septic tank, they are still 20 per cent over budget, due to the rising cost of materials.
Would they ever self-build again? “Never say never, but we don’t plan to,” says Tom, who also lists the positives: “We’ve really developed as individuals and have learned where our strengths lie with a project like this.
“Sarah handled the finance side of things while I managed the tradespeople. We have gained so many new skills, and not just DIY. I also learnt to drive a tractor thanks to Sarah’s dad.”
Andrew Milnes is Business Principal and Mortgage Advisor at the Mortgage Advice Bureau, Bingley, tel: 01274 568832.
The Government’s Help to
Build equity loan scheme is set to open soon. Visit www.gov. uk/government/organisations/ homes-england and search for “help to build equity loan”. It offers self and custom builders a loan of five per cent to 20 per cent of the estimated land and building cost. The loan will be interest-free for five years and the government says that this will allow borrowers to access lower deposit mortgages.
We’ve learned where our strengths lie with a project like this.