Self Build Mortgages

Mortgages - The Basics

Self Build homes account for around 13%, over 20,000, of all residential properties built each year. The most common self build is a detached residence and on average the completed property is worth approximately 25% more than the costs involved.

A new self build is zero rated for VAT. Other tax advantages are that there are no capital gains taxes on self build residential properties.

The cost of a building plot for sale will typically represent around 35% of the total cost and the land is subject to Stamp Duty if the purchase price is above £120,000 (or £150,000 in disadvantaged areas).

Some plots will come with planning permission, either full permission or outlying permission which means the local authority is minded to grant full permission. Planning permission is vital and should be carefully investigated before entering into any financial agreement.