SOURCE Ideas
Self-build is a very specialist area and we do believe that the lack of self/custom-build specific search options on sourcing systems drives clients to unsuitable products which don’t genuinely meet their needs.
Security of cashflow through knowing that expected stage payments will be received when the clients expect them – and this being at risk where the lender uses a valuation-based approach during the build – is a prime example of this.
In addition lenders’ criteria varies in terms of the kind of project they will lend on and at present the search parameters are very high level.
I’ve listed below the additional search factors we believe would make a real difference to ensure clients are recommended the right product.
Search Parameter |
Option 1 |
Option 2 |
Option 3 |
|
Individual self-build or Custom Build? |
Individual self-build |
Custom Build |
|
|
Project type |
New-build |
Renovation/conversion |
Knock down and re-build |
|
When are stage funds required? |
In advance of each stage of work |
On completion of each stage of work |
||
Guaranteed stage payments required? |
Yes |
No |
||
ERC-free product transfer required on completion of build? |
Yes |
No |
||
Initial Plot value |
£ |
|||
Build costs |
£ |
|||
Expected completed property value |
£ |
Lenders have varying criteria re how much they will release based on plot value and end value and also “loan to cost” ie how much they are borrowing compared to the project costs. Therefore this information needs to be collected to identify the products that meet their requirements.