The Society will consider lending to customers requiring Self-Build mortgage facilities, subject to the following criteria:

• No Interest roll up allowed. Borrowers must make monthly payments on installments as they are advanced
• Max 80% LTV of completed valuation
• Max 80% LTV of land valuation
• Detailed costings for the project are required and a 20% contingency to cover unforeseen additional costs
•  The contingency can be included in the loan amount requested or if the applicant can provide proof of savings to cover 20% then this amount can be discarded from the loan amount.
• Whilst the build is being carried out, if the customer is living in rented or a mortgaged property, we can offset the monthly payments providing the applicant can evidence 12 months savings to cover this outgoing. If they cannot evidence savings, then these monthly payments must be factored into affordability.
• Before building commences the valuer must have sight of the detailed planning and building regulations approvals. A Builders Notice will not be acceptable
•  A firm timetable of construction works is required. Building work must start within 6 months of first draw down of funds and property must be completed 24 months from first draw down of funds
• Outline planning consent for the type of property the applicant intends to build with at least two years’ consent remaining is required. Where detailed planning is obtained, we will require detailed architects’ plans and specifications for the property
• For all none trades people we will require a professional project manager to oversee the build (this includes trades people without project supervisors’ qualifications)
• If the property is built before the ERC period has expired, the customer will be offered a residential retention product as long as a completion certificate has been provided.
• Knock-down rebuild remortgage – Customers must be able to reduce the mortgage based on the low value point i.e. the valuation on special assumption of a cleared site with consent to build (first stage)
• Site insurance will be required
• Golden Brick developments will be considered subject to valuer comments on future saleability of the property, and care should be taken to understand the surrounding properties and potential impacts.

The building work must be supervised by a suitably qualified Architect. All Architects supervising the build must have Professional Indemnity cover of no less than £1m and one of the qualifications below:

• ARB UK Architects Registration Board UK (previously known as ARC)

• *RIBA / ARIBA / FRIBA Chartered Member/Associate/Fellow of the Royal Institute of British Architects
• MCIAT Corporate Member of the Chartered Institute of Architectural Technicians
• MASI/FASI Corporate Member/Fellow Member of the Architects and Surveyors Institute (excludes AMSI)
• C. Build E MCABE/ C. Build E FCABE Chartered Member/Chartered Fellow of the Chartered Association of Building Engineers (excludes A B Eng)
• MICE/ FICE Member/Fellow of the Chartered Institute of Civil Engineers (Excludes AMICE)
• FCIOB/MCIOB Fellow or Member of the Chartered Institute of Building
• MRICS / FRICS Member or Fellow of the Royal Institution of Chartered Surveyors (RICS)
• MI Struct Eng/ FI Struct Eng Chartered Member or Fellow of Institute of Structural Engineers

*Only acceptable if also registered with the Architect’s Registration Board (ARB)

The following stage releases apply; however, a flexible approach can be exercised for each case:

• We can release up to 80% of the land value up front and up to a maximum of 80% of the Gross Development value overall
• Where the land is already owned, 50% of the value of the land, up to a maximum of 80% of the total loan amount, may be released up front. 

Case Study 1:  Customer requires £100,000 and has already purchased the land which was valued at £50,000 in cash. Therefore, we were able to provide the full 50% of the land value can be released up front (£25,000, as this only represents 25% of the total loan amount required) to help refund the cost of purchasing the land.

Case Study 2:  Married couple require a loan amount £25,000 to complete their Self-Build. They have been gifted land from a family member which totals in value is £50,000. The maximum about that can released to cover stage one would be £20,000 to be within the 80% of the total loan amount only.

• The valuer will assess the property at each stage (a property inspection can be carried out as many times as the applicant wish, subject to reinspection fee), we will release up 80% of the value at that stage A Guide to Property Surveys and Fees
• The Society reserves the right to carry out interim valuations during any stage of the build.

The following stage releases apply; however, a flexible approach can be exercised for each case:

• The customer must have a second property which has sufficient equity to cover 50% of the required loan amount (including the contingency fund)
• A valuer shall be instructed prior to each stage being released to ensure progress is being made and the end value is still on target
• Final maximum LTV of 80%
• At each stage a re-inspection will be required at the cost of the customer. Fees can be found A Guide to Property Surveys and Fees
• The Society reserves the right to carry out interim valuations during any stage of the build.

The Society will allow Eco Self-Build properties. An Eco Self-Build can be defined as a property which is anticipated to have an EPC rating of A or B and at least one eco feature. Eco features could include:

• Higher than normal levels of thermal insulation
• Better than normal airtightness
• Good levels of daylight
• Passive solar orientation — glazing oriented south for light and heat
• Thermal mass to absorb that solar heat
• Minimum north-facing glazing — to reduce heat loss
• Mechanical ventilation with heat recovery (MVHR) system
• Heating from renewable resources (such as solar, heat pump or biomass)
• Photovoltaic panels, small wind turbine or electricity from a ‘green’ supplier
• Natural materials — avoidance of PVCu and other plastics
• Rainwater harvesting
• Greywater collection
• Composting toilet
• Glass that has two or three layers with a vacuum in between to prevent heat loss; (double or triple-glazed windows)
• Solar panels or wind turbines
• Geothermal heating and growing plants on the roof to regulate temperature, quieten the house, and to produce oxygen

Case Study: Couple decided to carry out mass renovation work on their detached family home by adding a double story extension and converting the loft into a fifth bedroom. While discussing their plans, they decided they decided to add solar panels to the roof to reduce electric bill costs. As the solar panels would provide a EPC rating of a B this was able to be placed on our Eco Self-Build giving the customer a lower rate.

Eco-Self Builds will be subject to valuer comments.