Drawing up a detailed Self-build budget is crucial so don’t forget to make provision for situations which could add costs but might not be immediately obvious. But what are hidden costs in a self build budget?

1. Check the Land Registry

A covenant is on the land not the owner and usually relates to development. Restrictions might dictate what and where you can build on the land, window positions, fence height and so on. An easement is also attached to the land. This gives another party right of way, such as a neighbour access to their property or a public footpath. A ransom strip is a small piece of land that doesn’t belong to the plot and prevents the owner access. Fees are payable to revoke any of these restrictions and you would need a solicitor.

2. Do you need a survey?

Take a good look around your plot. Converting an old building is likely to mean hiring a bat ecologist and if bats are found roosting, bat boxes must be fitted. Trees close to where you want to build may need surveying (and removing) to check if the roots could compromise the foundations. Loose or waterlogged land, or a site once used for industrial work, may need a soil survey to check the conditions are suitable for building – this can result in more costly foundations. If you think your plot is in a tricky location then hiring a planning consultant who knows the area could be invaluable.

3. Community Infrastructure Levy (CIL)

The CIL is a fee charged by local authorities in England and Wales to deliver infrastructure needed to support new developments in the area. There is an exemption for self-builds but lots of paperwork. Make sure you complete the three necessary steps before the build begins otherwise you might be charged – the fourth step is after you finish. To remain exempt, you must live in the property for at least three years after the house has been built. You can find more guidance on the community infrastructure levy on the government website.

4. External works

You may need to erect boundary fencing and fit a gate to secure your site before you begin. Perhaps the access isn’t suitable for bringing in equipment and taking deliveries on site and must be made bigger/relocated before you begin. When it comes to landscaping, some self-builders allocate their VAT reclaim (which should take four weeks to be paid out) to this project where there’s everything from the lawn and plants to paving and patios – and perhaps an outdoor building – to consider.

5. Connecting to the utilities

The advice is to start your investigations and conversation with the utilities early to get a quote – delays cost money. Things tend to move slowly and you’ll need a connection to water and electrics to be able to start the build. You might uncover issues such as needing permission to cross neighbouring land to make a connection, the distance to the mains being too far away, up a hill, or simply not having mains services at all. It’s worth knowing you can get a connection quote without owning the land.

6. Temporary living costs

Most self-builders need to sell their old property to help fund their build. Perhaps you expect to rent a small house or flat for a year, but it would be wise to budget for longer in case there are delays to your project. Consider the location of your temporary home in relation to your plot. If you’re planning to visit every day, then there will be travel time and fuel costs to consider – perhaps an on-site caravan is a better option? You can buy one second-hand and sell it on when you finish.

7. Storage and removals

It’s quite likely your temporary accommodation will be smaller than your previous home. You may need to hire an off-site storage unit for furniture and belongings you can’t fit in. Also factor in the multiple removal costs – leaving your old house and moving on from your temporary abode. Factor in costs to move your belongings from the storage unit into the equation.

8. VAT reclaim

You can claim back VAT on materials used to build a property for yourself to live in. You can’t claim professional fees such as planning, design, surveys or equipment hire. Make sure you’re not charged for VAT on labour as you can’t claim this back. Be aware you can only make one claim and it must be done within three months of finishing the project. The HMRC take the end date as the completion certificate issued by building control or proof of the last self-build mortgage payment. Apply by submitting a 431 NB claim form. Our knowledgeable team can discuss  your Self-build budget in more detail. Find more information about goods and services you can claim for under the VAT DIY Scheme here.