Advice Considerations
With a self build project the clients could be spending tens of thousands of pounds before even starting the build based on your advice.
4 key elements for the foundation of any self build advice.
Construction type of the property, the cashflow requirements of the project, the build costs and project management . All of which can impact each other.
Mayflower will take the time and stress away from you by sourcing appropriate solutions
and guide you and your client through to build completion.
Construction Type
Lenders want to make sure they are comfortable with the final securities super structure. At Mayflower we can help fund anything from straw bails through to modular construction.
The superstructure your client is using to build the home will also dictate the cashflow requirements. You May be able to find enough funding for your client but it needs to be available on site when needed.
Given the close relationship between the construction type and cashflow, one form of construction may be viable and other not. Steering the clients correctly at the early stages can make or break their project.
Cash Flow
Lenders want to make sure they are comfortable with the final securities super structure. At Mayflower we can help fund anything from straw bails through to modular construction.
The superstructure your client is using to build the home will also dictate the cashflow requirements. You may be able to source enough funding for your client but it must to be available on site when needed.
The type of construction chosen can have a significant impact on cashflow, making one option feasible while another is not. Therefore, providing proper guidance to clients during the initial stages of their pre-project planing can be crucial the projects feasibility .
Any Self Build lender will want to make sure the client or their builder has fully costed the project with the appropriate level of contingency.
The lenders comfort level with the detailed required and expected costs per SQM will vary from one to the next. As will the level of contingency that each requires.
If the correct detail or contingency is not taken into account at the early stages it can cause issues with placing the clients case.
Mayflower have a full costing service that your clients can utilize. The report includes a full break down of all materials and labor needed as well a quantified schedule and proposed GANT chart.
Build Cost
However, the client is running their build Mayflower can help, from those doing everything them selves through to those who are completely hands off with their projects.
The important thing as the adviser is to understand how the build is being managed and which lenders are happy fund under those circumstances.
Some lenders are happy for the client to do everything them selves with no experience, others want experienced professionals involved and some will insist on a professional contractor running the build.
The complexity to trying to find which lenders will work in which build management scenario’s is further compounded when you have to take into account the 3 aforementioned considerations.