When building your own home, many people are not aware of the small costs involved. The following incentives are below:
Cost of Building Plot
Before beginning the construction of your house, the plot should be or nearly be paid in full. This will be an advantage for you when financing the building cost for the house and for the other financers.
Cost of Mortgaging & Finance
To register a mortgage, a fee will be paid to the Land Registry Office of about 1% of the Mortgage amount. Usually themortgage amount is the actual loan + 20% on top. You will have to pay the stamp duties and other Bank expenses, which could take the form of a one-off bank charge (maybe Cy£1000). If you borrow froma bank there is an additional charge of approximately 2% p.a. on top of the legal base rate of 4.25%. There are now many alternative housing schemes including Life Insurance finance, Co-op financing etc which extend for 25-30years with own contribution approximately 20% (usually through term life insurance).
Cost of Architectural Drawings
It is imperative to use a qualified architect or engineer will have the responsibility for the work done. Rates are normally around 5% on the total cost of the building and include the design and supervision. On a complicated buliding this can go up to around 6-8%.
Cost of Building License
The Town Planning Department charges for the issue of the license will cost you around Cy£300 and for the building license an added amount of Cy£150-200.
Cost of the Quantity Surveyor & Mechanical Engineer
If you would like to hire a quantity surveyor for the building, a fee of 1% of the total building cost is required. The cost for a mechanical engineer (usually for large buildings) is approximately 3-5% on the cost of the Electrical and Mechanical Budget. The above is optional, it is advisable for large and complicated buildings.
Cost of the Building
A normal quality house will cost an estimated Cy£650-800 per metre for the covered area.
House Cy£650-800 per m
Cy£162,500
Fees and Licenses
Cy£5,000
Landscaping
Cy£3,000
Total Cost
Cy£170,500
N.B. An additional 15% VAT will be included.
In recent years, with the VAT be introduced into cost and the rise of labour/materials costs, the building cost has increased 7-10%. It will take an estimated 18-24 months to build a house from the submission of plans for a licence to completion.
