Advice on New Build, please(13 Posts)
We live in an Edwardian semi detached house. It's tatty, needs new sash windows every where, new kitchen etc. We've not done much to it because of our plans.
We have planning permission to build a house on our drive next door. We want to move into this house when it is built and sell our current one.
The house will be almost the same as this house in look and size. Except we wanted to build a big cellar which would incorporate a big laundry room for washing machines, hanging laundry, ironing, storing suitcases etc. And there'd be a study room too.
It turns out the build cost of the cellar will be one third of the build cost of the entire house. If we don't have the cellar, the house will be very cramped for us. But it seems that we will not recoup the cost of the cellar when we come to sell in two years. We're talking £50k for a cellar. It would be a big underground space, mind.
I have thoughts that I'd appreciate help/input on:
- My instinct is to build the house next door without a cellar, sell it and move on to somewhere completely new. However, the next house we move to would not be our forever house - as we've not reached that point in being able to afford such a home yet - and we'd have to move again and bear those moving costs again.
- Or, we could build the house next door without a cellar, sell it, improve our current house massively - convert the loft, spend money on windows, plastering etc and stay in it. What we want to do is estimated to cost around £12k. But this house still wouldn't be our forever house. We really want to leave the area.
- We could avoid spending money on the current house, build the house next door without the cellar, sell both and move on. We might not sell this current house at a good price though as it's in a bit of a state.
- Build the house next door, spend all the money on a good cellar and live in it for a few years and sell this house without spending money on it.
Aaaargh. It's all such a muddle and I don't know what the best approach is. We need to make a bit of money for once instead of hemorrhaging cash the whole time.
Or just sell your current house with planning permission to build another house and sell it to a developer and move on. But it is a very wrong time to do this.
That option isn't one we'd do, Fiddle.
But what is right thing to do?
Can't you do something with the basement that will make it more than a utility area and therefore worth more if you decide to sell at some point?
To be honest, as you're not sold on the area, I would be keen to sell both the house and the plot to someone who could develop them. It seems a bit pointles living in a shabby house in a neighbourhood you don't like because one day you may decide to build a slightly bigger house next door that might not be worth what you spend on it...
Also, if you sell the house as it is with the plot still incorporated into the garden, you may not have to pay CGT on the plot.
Oops, just seen Fiddledee suggested that and you said no. Why are you so keen to build and live in a house there if you don't want to stay there?
I assume you already have or can definitely get planning consent for the new house? What is the maximum footage allowed?
Either build the house you really want and damn the expense (it will cost at least 25% more than the higest quote you get, even quotes made in jest)
sell the plot - either with or without your house attached
Building from scratch is hard and expensive and stressful and a labour of love. A single plot suitable for a reasonable 3/4 bed house in a decent area will sell in a flash at a premium to an individual who wants to self-build. The extra profit (if any) from a finished house may not be worth the stress and time it takes unless you have considerable experience and nerves of steel.
DEFINITELY get advice on the relative value of the plot (with permission) and the value of a finished new-build before you make a decision.
Hi, yes, we've got planning permission for the new build. As big as we can build it. They're a bit tricky, our local council, as everything must be in keeping with the surrounding area. It's fine - we've sorted that out.
We've got quotes from builders and the estate agent says we could sell the new house at a price that will give us £150k profit, all things being equal and accurate at the time of going to press, so to speak.
The plan was to live in it for two or three years and then sell it. And then move into our forever house.
I think we were just shocked at the proportion of costs that would be allocated to the cellar build. The cellar would be two double bed sized rooms - one for a laundry area and the other for a study/guest room.
Often with self-build, the only people who seem to make real money are those that have land to sell with planning consent. If it's all about raising money, I really would consider selling the plot before the market nosedives rather than spend a lot of money on something that may be worth a lot less by the time it is complete either because the budget gets busted or the sale price falls.
I agree with lalalonglegs.
Sounds like you are doing this mostly as a stepping stone, so act with your head not heart and go for whatever is the most cost/beneficial option - not your favourite
Thank you very much indeed for taking the time to consider and reply.
I'm still mulling and mulling and mulling.
We've included a £47k contingency budget. That's 28% of the total projected build costs.
I've been reading about projections for the housing market next year and it's not really looking positive, is it?
Dh is keen to proceed with the new build without the cellar. Then sell it. Of course, CTG will be an issue! Unless we move into it for a year or so.
Then he feels we should also doll up this current house - we've been given quotes ranging from £11k to £15k - by entirely repainting throughout, replacing seven of the horrid, rotten windows, new front door, garden wall rebuilt and developing a cold back room into a proper, plastered reception room.
He thinks it would sell quickly and would not look so crappy when it's standing next to a spanking new build.
I'm worried about the hassle of a new build. I mean, we'd have the architect and structural engineer managing it - those costs have been factored in.
Toally agree with lala. I can think of two people who, in hindesight, really wished they'd sold the plot with permission. Great if you're building your 'forever' house but if you're not then being in the building business ourselves I'd say investigate further.
I think the big question is who the ultimate market for the new house is?
So if it's for a family, would they want a smaller but cheaper house? Or would they want the extra space? Remember you don't want it as a forever home without that space, so why would anyone else?
Extras are what is swinging sales in this depressed market. The more flexible you can make the space, the better. (So I'd also be adding lightwells and sunbeams to the downstairs rooms too, so that potentially it could be a granny flat, additional bedrooms etc).
People buying the Edwardian house though would be interested in original features, so they may want to knock a bit off the price in order to restore the windows properly rather than looking at your patch up job for the next 15 years.
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