Self Build Draw downs

  • Thread starter munsterman25
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munsterman25

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Hi all,

A few queries about ta self build. When I buy a site I place a deposit on it and when I get the planning the bank gives me the balance and I pay it, that grand. Then I begin to build the house. I presume the bank will release the money in stages?

Lets say when the floor in is the first stage and the roof on is the next. My question is if I get it done direct labour and lets say I dont have recepits, ie have paid in cash, will the bank release the money I need. Will it suffice to have an arcitect or engineer to sign off or will they require recepits for exact amounts
 
The way we do it is that we take a look at the receipts for items supplied, then make an inspection on site, and then certify the payment to the bank.

So the payment is made in relation to works completed (as per the estimate) and building supplies on site.

Note, I said building supplies! This does not mean your furniture. You will need to check with your architect/engineer as to what they will certify and not. We recently had someone ask us to certify for their suite of furniture, needless to say, we weren't in a position to do that :lol
 
Ok so recepits for actual labour completed may not be nessacary? If I gave you receipts of lets say for argument 10,000 for supplies and had the block work done and need lets say 25,000 of the mortgage you would sign off based on the work done and not on the basis of recepits for labour
 
Receipts for labour

Well the receipts for labour would be taken into account.

But say, in theory, that you were actually building yourself, then we use an industry standard to calculate the stage payments. That is to say a price for work done, per square metre, at different stages of construction.

Remember, it's our job to be appraised of how much it costs to do x, y, and z so the engineer should have a fairly good idea.

Just a word of warning though, at the moment, we have a policy of not touching self builds with a barge pole. Self builds require much more supervision and hand holding on our side and can create problems in relation to insurance for us.

If you can afford it, I would recommend employing a reputable builder with good insurances, they're worth their weight in gold.

HTH

Mo
 
Re: Receipts for labour

Ya but I can get a good builder and indeed carpenter, plumber and electrcian that will give me cash prices and non-cash prices. How do I work around that regarding getting my money from the banks
 
Re: Receipts for labour

I would sit down with your Engineer/Architect and explain to them what you intend to do and ask them how, if at all, they can accommodate you.

HTH

Mo
 
Re: Receipts for labour

Receipts aren't required for self build; your architect/engineer will certify the cost of construction to date for each stage payment. There will be an initial site valuation on behalf of the lender and a final inspection prior to the last payment being released.

Kind regards,

Sarah

www.rea.ie
 
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