Financing your Project

One of the main problems that cause people to get into trouble on a building project is that they start the works either without a budget at all or with an unrealistic budget that has not being thought through. The last thing you want to do is run out of money half way through your project.

Some people make the mistake of focusing on the build cost and they don't take account of other costs in their budget such as design, planning and building control fees and the dreaded VAT.

It should also be borne in mind that building works almost always cost more than the original quotation due to a number of factors. Most people make changes as the works proceed, this is normal but needs to be allowed for. In addition there are often a number of unforseen's that need to be allowed for, the foundations may need to be deeper than thought or some of the existing drains may need replacing. Some of these works you will have no choice over they will have to be done.

We would recommend that you include a contingency sum of between 10-15% (minimum) into your budget to allow for these items. It is far better to have a larger budget than you need and then either not spend it all, or have the option to spend more on the nice things that come at the end of the project such as your new kitchen or bathroom or even new furniture.

So your budget should include the following:

• Design Fees

• Project Management Fees

• Planning and Building Control Fees

• Contractors Quotation

• Contingency Sum (10-15%)

• VAT

Our specialists will help you to calculate your budget before any design work is undertaken and any adjustments can be made at that stage if they are needed. Our Architects are able to ensure that you maximise your budget with clever design and a knowledge of alternative cheaper products of equal quality that could be incorporated into your project.

So, once you have worked out your budget you need to work out how to fund the project unless you are in the fortunate position of having the cash available. There are two main ways to fund the works.

If your project is smaller and you can afford to make larger monthly payments then a personal loan is worth considering. You can usually borrow up to £25,000.00 over terms up to 5 years at very low interest rates. This means that the works get paid for reasonably quickly and the interest on the loan is very low.

The second option is to extend your mortgage or to re-mortgage your property if your current deal has ended. The benefit of this option is cheaper monthly payments but the process is more long winded than a personal loan, you will have to go through the process of having your house valued and also ensure that you have enough equity in the property to justify the additional borrowing.

Whichever way you choose to finance your project you can be safe in the knowledge that a well designed and constructed extension or alteration can massively improve your house. This not only makes it a nicer place for you to live in, but it also increases its value and saleability

#finance #buildingloan #mortgage #fundyourbuild #personalloan #extension #homeproject #alteration #granddesign #funding #loan #budget #buildbudget #planyourbuild #builder #architect