Dudley Building Society
Self Build Conditions
No roll up of interest is allowed. Borrowers must make monthly payments on instalments as they are
advanced.
Max 75% of completed valuation including the £995 arrangement fee.
Applicants must show ability to service the new instalment mortgage for the whole of the mortgage
term together with any other commitments they have throughout the construction of the property.
Many applicants must therefore sell their existing property before starting on a self-build project.
There must be firm plans for construction of the property. The applicant(s) may not purchase the
land with only a vague intention of building a house at some later date.
Outside planning consent for the type of property the applicant(s) intends to build with at least two
yeas remaining.
Detailed architects plans and specifications for the property must be provided.
Detailed costings for the project incorporating a 15% allowance for inflation and unforeseen
expense.
Our schedule of costs form must be completed and returned with the mortgage application.
A firm timetable for construction of the property. This should show that the property will be
completed and the final instalment released no more than 12 months from the date of the Mortgage
Offer.
Building must start within 6 months of the Mortgage Offer.
Construction must be supervised by a suitable professional consultant or NHBC, or similarly
‘registered’ builders must be undertaking the development.
The building work must be supervised by a suitably qualified Architect or Building Surveyor in
accordance with the CML Handbook.
Before building commences the valuer must have sight of the detailed planning and building
regulations approvals. These documents are required in all cases, even if the initial instalment is to
be on the land alone.
Prior to offer details of home construction insurance will be required.
We will consider up to six stage releases. The stage release must be confirmed by the valuer or
professional consultant.
Stage
Construction
Stage
Aggregate
1
Damp Course Level
12.5%
12.5%
2
First Floor Joist
12.5%
25%
3
Roof Wall Plate
12.5%
37.5%
4
Roof Structure & Covering
12.5%
50%
5
Plastered
25%
75%
6
Completed
25%
100%
Where the applicant is buying land, an initial instalment of up to 50% of the value of the land may be
released up front, up to a maximum of half of the agreed mortgage.
The applicant must be made aware that this initial instalment will affect the subsequent instalments
that can be released as construction progresses.
Example: Completed value of property £100,000, value of land £40,000, advance requested £75,000. If
an initial instalment of 50% of the land value is released, this is £20,000, this represent 27% of the
advance requested. Therefore, no further monies could be released until roof wall plate level reached.
Version 1.1
June 2013
Self Build – Schedule of Costs
Applicant(s) Name:
Application No:
Build Information
House type e.g. house, bungalow, barn conversion
Floor area in square metres
Preferred construction i.e. timber frame or
brick/block
Roof materials i.e. concrete tiles or slate tiles
External wall construction i.e. block/render or face
brick or natural stone
Management i.e. self manage or project manager or
builder
Estimate (including materials/labour and VAT)
Item
Purchase of land including stamp duty and fees
Outline planning consent
Full planning consent and building regulation
approval
Cost of plans/architect fees
Cost of new build warranty scheme e.g.
NHBC/Professional consultants certificate
Insurance - third party/contractors all risk/self build
employer’s liability/ buildings/ as appropriate
Groundworks (clear site/foundations etc)
Build structure to wall plate level
Roofed in (complete roof structure/coverings etc)
Rainwater goods
Glazing (external)
First fix joinery/partitions
First fix plumbing
First fix electrics
Floors/ceilings
Plastered out/screed floors
Second fix joinery
Second fix plumbing (incl bathroom fittings)
Second fix electrics
Fit kitchen
Heating/hot water system
Drainage system/connection
Decoration (incl tiling etc)
Landscaping/paths/drives/fencing/walls
Sub total
Plus contingency (min 15%)
Total costs
Signed:
£
£
£
1.
2.
Print Names(s):
1.
2.
Version 1.1
June 2013