FINANCE SERVICES
PROTECT YOUR SELF-BUILD INVESTMENT BUDGET
Building your own home is exciting but unexpected costs are inevitable , so SelfBuild Insurance has some information on how to protect your budget .
SELFBUILD : THE NUMBERS
The Planning Portal numbers show that self-build homes account for 7-10 % of new homes built in England every year – approximately 12,000 homes . This is in stark contrast to Europe , where the numbers are much higher . Self-builds make up over 50 % of all new homes built in Germany .
SELFBUILD INSURANCE : MINIMISING ADDITIONAL UNEXPECTED COSTS
Most self-builders will want to work to a set budget , particularly given the impact of inflation on things like materials and labour . Some only consider insurance once they start building on their plot , but purchasing insurance when you exchange contracts protects your plot . Once the land is bought , it ' s exposed to many risks .
Selfbuild insurance policies cover a range of risks in one straightforward policy . This includes the potential for members of the public to get injured , to cover worker injuries on site , plant , materials and the works in progress . The cover remains in place until building control approves the new property .
Insurers calculate premiums on the professional reinstatement cost of the property ( the cost of rebuilding it ). Insurance cover is available in monthly increments ( three , six , nine , 12 , 18 or 24 months ).
WHAT INCENTIVES ARE AVAILABLE FOR SELF-BUILDERS ?
In England , the Help to Build scheme offers an equity loan to buy land and build a home . Self-build mortgages are available from registered Help to Buy lenders , with a minimum 5 % deposit . Mortgages are interest-only until the building is complete , and then the Help to Build loan is paid to the mortgage provider . The loan is interest-free for the first five years .
With thorough preparation , a self-built home can be a rewarding and cost-effective way to own your own uniquely designed home .
To get a quote , call us on 0800 230 0225 or visit www . selfbuild . uk . com
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