If somebody has a site and has planning permission to build two houses on a site (in Dublin), what would be the most cost-effective way to finance this? The idea is that the first house would be sold and the second house would be for the site owner, with a small or no mortgage on the property. On his own, the site owner could get a standard mortgage of say €320,000 and they have a further €130,000 in savings. But to build the two houses, - c. 160 sq m each - including the cost of the land, it would cost a total of c. €900,000, or thereabouts. At the current market rate, each house would get c. €1 million. So, a conventional home mortgage is out. What loan options do other people have? Is there any sector of the market which would help fund this at a reasonable cost?
How would somebody, whose only experience of building is in hiring builders, etc to completely renovate his own house, even start funding a project like this. What would the lowest interest rate available be? I expect the loan would be for, c. 2 years - (assuming it sells within 14 months or so of completion).
Any feedback or advice would be most welcome.