Purchasing land to do a self build property

[Junaluma]

Has anyone done this/have any experience? DH and I have came across land for sale with planning permission to build a house on and we’ve done the math - would be much cheaper than buying a house in the same area and the stamp duty is cheaper on land than a house (you don’t pay any for the house, if my research is correct?)

How long did it take? What do you know now that you wish you knew from the start? What was the process like?

Thanks!

Is it with full planning permission or outline planning permission? Some lenders are hesitant with outline planning permission.

Just checked and it’s full planning permission. We would be cash buyers so that wouldn’t be an issue

Have you watched grand designs? You'll need a massive budget for cost and time overruns and be prepared to risk divorce which seems to be the fate of most people on that show!

Have you checked out all the costs - getting connected to the electric grid and sewage / water is often a hidden problem and basic access sometimes

First I would review all of the planning conditions if there are any some planning as conditions that must met before construction, during or after completion
check for any legal access issues such as right of ways etc
Investigate thoroughly all utility accesses there’s no point in proceeding if it would be impossible to get a broadband or water connection. Although if you can’t get a water connection, you could have a well and septic tank, etc. Either way, it will cost money.

Check for any covenant on the land etc as usual and tree preservation orders, etc
And get a solicitor that deals with land purchasing…

There are various self build forums out there which are a goldmine of advice and experience.

Thanks all. We have a healthy budget for this project, allowing a 15% contingency plan for the unexpected. We used to be in touch with someone who built a house in England but alas no longer speak so I am aware how it can overrun and go over budget! Yeah the thought of divorce has crossed my mind but we have agreed on the basics so far and what we want is similar.

Good advice about water access. We have been to see the land a few times since gaining interest and I get fast internet speeds on my phone (5G). The land is in a great location - nestled in a semi rural setting but with other houses next door so I’m guessing water access won’t be too much of a problem.

How old is the PP?

Would you want to build the house that has been given PP or would you want a different design? Even small alterations would delay the project, but a new design could set things back a while.

We did this and swore never again - we're now planning on another one, so the awful aspects do get forgotten!

It cost at least twice as much and at least twice as long. We were completely ripped off by the builders who I think also got fed up doing it. I'd probably project manage myself next time.

If it's rural, look out for ransom strips where the farmer has to give you access for utilities etc. I'd say also see if any objections have been raised when planning went in and chat to potential neighbours in case they're going to be frosty about a development.

15% is nowhere near enough of a contingency. Roughly add 30% your cost (and timeframe) on to any building project as a norm for something straightforward. If it’s got bespoke windows or something like that then add 40%.

Others have said about potential “before” costs like utilities etc. Don’t forget about after costs - lighting, decoration and furniture and if it’s a second home you may have to pay higher council tax etc.

I would allow more than 15%, cost of materials are crazy.

There are a couple of very good Facebook groups for self build. It's a dream of mine so I follow them for inspiration!

Possibly also worh joining the planning geek Facebook group.

Don’t forget the ‘hidden’ costs, like the drive, garden walls, soakaways, double garage, shed, patio etc.
If I was doing one, I’d just buy an off the shelf timber frame one that can be erected quickly then brick/blocked up.

I would suggest getting soil samples done. We had an extra cost of about 50k for pile foundations, due to very slippy clay. It wouldn't have stopped us buying, but things like this can blow your budget. Agree 15% contingency isn't enough.

We did this twenty years ago. From finding a site, to buying the land, designing the house, getting planning permission and finally moving in, it took about 18 months. We managed not to go over budget, but I don't know how, probably by moving in before it was finished. We're in Ireland and it's not unusual to self build here. No regrets, other than that I wish we'd had the funds at the time to build a bigger house.

All of the above. Most importantly 15% contingency is way off.
Have you got an architect to draw detailed plans (structural) so the building project can go to tender to get realistic prices?
Will you need to do environmental surveys? I would imagine yes if this is a rural plot.
Don’t assume water supply is going to be easy and waste even less so. If you have to have a septic tank/treatment plant then that is £££.
When was planning approved, as the clock will be ticking before the approval expires.
Think very hard about this. It is a mine field.

Thanks all. Definitely some solid advice and will mull over it for the next few days - we have factored in the garden, drive, gate, garage etc in our budget. We can up our contingency if needs be.

I’d say go for it. Plan for 35% over and look at SIPs so you can get it built quicker and move in.

Did it quite some years back. I'd do it again in a heartbeat. Yes it's stressful and you need an elastic budget, tolerance of constant changes in plan, and the ability to make 1000 decisions a day. But our home was wonderful.

Are you planning to do the building (as in you and your partner doing most) vs hiring a general contractor?
Dh and I bought the land, found a house plan. Presented it to 4 recommended general contractors, they replied as to their availability and price point.

The fellow we chose was well regarded, had an established crew, and was available. 18months start to finish.
first time for us, everyone stayed on budget. The project came in under budget. Extremely pleased with his crew and professionalism.

We would hire someone. Your experience sounds positive, which part of the country are you based in and what problems did you have, if any? Did you manage to stay on budget? We are still at early stages of deciding what to do but have done a lot of research. I’m hoping because we are cash buyers, it might give us some leverage to negotiate a lower price for the plot of land?

I think my biggest concern so far is how expensive everything will be (we have budgeted up to £1.8m for everything, but we are looking at an expensive part of the country - so the budget doesn’t seem as big as you think) but we’ve reminded ourselves this will be our “forever” home and the houses in this area would be out of our budget otherwise!

Sorry just read you came on budget so please ignore that!! 🤦

Actually under budget.
I'm not in the UK but the process and regulations are similar.
Tim (our builder) took us to two homes which he had built, two different trim levels, he helped set our expectations.
DH requested line item itemization; this initially did not interest me (cement/rebar/lumber etc) but some area's did (closets/kitchen/bath fixtures).
he sent us photo's weekly.
our first meeting was the exterior 1 tense afternoon where all the exterior bits were coordinated, the whole palette of samples put together like a pinterest board as we drove around to various vendors. the interior colors were the same, and intense afternoon of sample after sample, when it came to the flooring we had hoped for ceramic tiles and this is where his professionalism came in (out of budget! but but but the sq foot price is the same as laminate? yes but labor is 3x the cost, ohhh) thankfully for everyone this did not happen often.
He questioned me on the placement of light switches and i said to go with the architect drawings but Tim was right the switches in the master bedroom are awkward.
I won't bore you but it was a very positive experience and zero regrets.
Big unexpected expense?? Hardscaping, not the landscaping plants but the retaining walls, the property is shaped strangely and needed large cement blocks to level out segments.
We did do some stuff ourselves, I purchased bathroom and kitchen fixtures on sale from a shop closing down (saved a good chunk, I organized delivery they installed), DH did some of the landscaping (set up an irrigation system), and we waited six months to buy the air con on sale vs at the time of the build.

I have no idea where you have gotten the idea that its cheaper to build and entire new house than buy one but its really not. Especially not if you have to hire in trades for your solo job as its not your own team of qualified and experienced employees on the payroll doing multiple jobs (building companies get discount because if they build an entire estate of houses they are employing those men basically full time for years of steady work).

My house cost £100k to buy and my rebuild insurance (the cost to have to rebuild in a disaster) is estimated at £282,660.

To put in perspective just to rebuild the extension (built decades ago when it was much cheaper) would cost almost as much as the whole house is worth in todays labor and material prices.

Thanks!! That’s positive to hear.